asked the Chancellor of the Exchequer (1) whether payments made to the Commissioners of Inland Revenue can be regarded as public expenditure, with particular reference to the payments totalling £1,848,318 specified in his Written Answer to the hon. Member for Warley, East, Official Report, 31st March 1977, column 240;(2) whether the discharge in kind, to the extent permitted under statute, of obligations in respect of capital taxes can be regarded as public expenditure.

Public expenditure is incurred when the National Land Fund meets the cost of the revenue forgone through these transactions.