§ 26. Sir WILLIAM DAVISONasked the Chancellor of the Exchequer whether he is aware of the unemployment caused by the operation of Death and Estate Duties in breaking up businesses and estates and appropriating capital which would otherwise have been used for developments; whether he will consider, in connection with his forthcoming Budget, making provision whereby taxpayers can take out insurances by annual payments out of income, either in the name of the Chancellor 151 of the Exchequer or otherwise, to meet the estimated amount of the duty payable out of capital on their death, and providing that the amount of such insurance not exceeding the amount of the duty payable shall not be taken into consideration in the valuation of the estate for Death Duties?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)As I explained last year, in reply to a similar question put by my hon. Friend, not only are there objections in principle to what he proposes, but the cost to the Exchequer would be prohibitive. I can, therefore, hold out no hope of my right hon. Friend adopting his suggestion.
§ Sir W. DAVISONCan my hon. Friend say what the estimated cost to the Exchequer would be, and whether the Government realise the serious effect on trade, shipping and industry generally of these capital levies on individual estates?
§ Mr. HORE-BELISHAObviously, it would be impossible to say what the loss would be. The loss would depend upon the number of persons who took out assurances. If assurances were taken out to the full amount of the duty payable, the Exchequer would cease to receive anything at all.
§ Sir W. DAVISONIs my hon. Friend aware that these assurances would be paid immediately by the insurance companies, and that all the delays which now operate would be obviated?
§ Mr. HORE-BELISHA rose—
§ Mr. SPEAKERMr. Oswald Lewis.
§ 28. Mr. OSWALD LEWISasked the Chancellor of the Exchequer if he will consider the possibility of issuing some form of security at a low rate of interest with the condition that it would be accepted at its par value in settlement of Estate Duties?
§ Mr. HORE-BELISHAMy hon. Friend will see, from paragraph 181 of the Report of the Colwyn Committee on National Debt and Taxation (Command Paper 2800 of 1927), that various objections have been stated by financial authorities to the form of borrowing which he recommends.