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Capital Return Rate

Volume 933: debated on Monday 13 June 1977

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asked the Secretary of State for Industry if he will estimate the rate of return on capital for all United Kingdom companies at replacement cost after providing for stock appreciation, in 1975 and 1976.

For all companies, 1·6 per cent. in 1975 and, provisionally, 1·7 per cent. in 1976. For industrial and commercial companies, the estimates are 3·4 per cent. in 1975 and, provisionally, 3·5 per cent. in 1976, but I would expect profitability to increase as economic conditions improve.