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Government Revenue

Volume 124: debated on Friday 18 December 1987

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To ask the Chancellor of the Exchequer what was the net contribution to Government revenue from (a) external financing limits, (b) tax, and (c) dividend income from (1) The Central Electricity Generating Board, The North of Scotland Hydro-Electricity Board and the South of Scotland Electricity Board, (2) British Steel, (3) the water authorities, (4) British Gas and (5) British Telecom.

Government revenue in 1986–87 from tax and dividends for the industries named was as follows:

TaxDividends
(a)Electricity Supply Industry1(England and Wales)00
North of Scotland Hydro-Electricity Board00
South of Scotland Electricity Board00
Total Electricity00
(b)British Steel00
(c)The Water Authorities00
(d)British Gas239130
(e)British Telecom234944252
1 Separate figures for the Central Electricity Generating Board are not kept centrally.
2 Both these industries are in the private sector. British Telecom was privatised in November 1984; British Gas in December 1986.
3 Tax paid as in annual report and accounts. Gas includes gas levy.
4 Dividends payable as in annual report and accounts.
2. These figures do not include interest payments made by industries on loans from the Exchequer, or interest on the Exchequer's debenture stock in British Gas and preference shares in British Gas and preference shares in British Telecom.3. The following industries of those named in the question had negative external financing in 1986–87:

£ million
Electricity Supply Industry (England and Wales)-1,325
North of Scotland Hydro-Electricity Board-12
British Gas Corporation-684
Negative external finance represents either a repayment of outstanding Government or market debt held by the industry, or an increase in their deposits with the public sector. All the other industries had positive external finance.

To ask the Chancellor of the Exchequer if he will estimate (a) the capital gains tax and (b) the corporation tax yield in 1986–87 from (i) gains in quoted shares and (ii) gains in unquoted shares; and if he has any estimate of expected revenues in 1987–88.

With regard to the first part of the question I refer the hon. Member to the reply I gave to my hon. Friend the Member for Luton, South (Mr. Bright) on 8 December 1987 at columns 68–69. Revenues in 1987–88 from capital gains tax and corporation tax on capital gains realised by companies are estimated to be £1,300 million and £800 million respectively.