§ 61. Mr. Nabarroasked the Chancellor of the Exchequer what would be the loss in revenue to the Treasury in a full year of applying the £10 per annum flat rate of horse-power tax to all private motor cars, to include those first licensed prior to 1st January, 1947; and how many such motor cars would be re-rated if this alteration were made.
§ Mr. GaitskellNo later estimate of the loss in a full year can yet be made than the figure of £6 million which was given by my hon. Friend the Financial Secretary to the Treasury in a reply to the hon. and gallant Member for Chelsea (Commander Noble) on 15th June last. If this alteration were made, it is estimated that 1,202,000 cars would be re-rated.
§ Mr. NabarroDoes the Chancellor realise that the continuing stringency in respect of new cars during 1951 will place an added financial burden on owners of pre-1947 vehicles? In those circumstances will he give urgent and earnest reconsideration to the question of the standardisation of the £10 tax?
§ Mr. GaitskellThis question has often been considered in the past. I consider that the arguments for retaining the present system are very strong.