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Regional Economy

Volume 897: debated on Monday 4 August 1975

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asked the Chancellor of the Exchequer what research his Department is carrying out into the workings of the regional economies of the United Kingdom.

The Treasury is conducting an analysis of the effects of changes in the regional distribution of demand on total employment, hours of work, inter-regional migration and the operation of regional multipliers. The work draws on the expertise of other Departments involved in regional policy and on academic research. The Treasury also maintains close liaison with research by other Departments on particular aspects of regional policy. The work of the Treasury and other Departments together is intended to provide a better basis for assessing the costs and benefits of regional policy as a whole.

asked the Chancellor of the Exchequer what the notional income to the Exchequer would be in any one year from the taxation of each State benefit, including unemployment benefit, at current levels of income tax.

At 1975–76 rates of tax and at the social security benefit levels operative from November 1975, the estimated full yields are as follows:

£ million(1)
Sickness benefit160
Employment benefit150
Invalidity benefit75
Maternity benefit15
Industrial injury benefit15
(1)The underlying figures for benefit payments relate to Great Britain and the tax yields on a United Kingdom basis would be slightly higher than those given above.

I regret that information is not available on which to base an estimate for the remaining benefits, but as nearly all of these are received by those with incomes below the tax threshold the potential tax yield would be small.