HC Deb 12 April 1943 vol 388 cc955-6

The Committee will remember that in my last Budget, after consultation with my right hon. Friend the President of the Board of Trade, I announced the exemption from Purchase Tax of utility cloth and clothing, including boots and shoes, made in accordance with the specifications prescribed by the Board of Trade, and later in the year I introduced a similar exemption in respect of utility furniture. I now propose to make another important exemption by freeing from the tax all utility cloth, whether in the piece, shaped or partly made up, which is not already exempt, as well as textile articles of a kind used for domestic purposes, soft furnishings and haberdashery which comply with my right hon. Friend's utility conditions. The list of articles affected is too long to be given in extenso, but I may perhaps mention utility black-out cloth, towelling, handkerchiefs, bed linen and mattresses, as examples of the sort of thing which will benefit from this remission of tax. Of course, it behoves everyone to be as economical as possible in the consumption of these, as of other goods, but where a purchase is really necessary we desire, particularly in view of the wider national considerations, to achieve economy in materials and in processes of manufacture, thereby easing the strain upon labour and factory space. When these exemptions are added to those of utility clothing, footwear and furniture, which I have already mentioned, much will have been done to reduce the cost of a wide range of sound and serviceable articles in war-time household budgets. Subject to the approval of the House, a Treasury Order will be made in due course giving effect to these proposals as from 3rd May. The cost to the taxpayer will be about £6,000,000 in a full year.