§ 57. Sir George Broadbridgeasked the Chancellor of the Exchequer whether it is in accordance with the policy of the Government that banks should be asked to make advances for the purpose of subscriptions to Tax Reserve Certificates?
§ Sir J. AndersonNo, Sir. As my predecessor stated in reply to a Question by the hon. Member for East Birkenhead (Mr. Graham White) on 19th February, 1942, it is entirely contrary to the wishes of the Government that subscriptions to Tax Reserve Certificates should be financed by borrowed money. The main purpose of the Certificates is to help taxpayers who have material sums to meet by direct payment to set aside those sums as their profits or incomes accrue and are available in cash.
§ Mr. StokesMay I ask the Chancellor whether in fact by borrowing money for this purpose from the banks the banks do not themselves thereby earn more interest, and therefore as they then pay it away in Excess Profits Tax the Exchequer benefits? Is it not all humbug?