§ 28. Mr. Peter Freemanasked the Chancellor of the Exchequer, when he undertakes his review of the national finances at the end of the year, if he will reduce 602 the periods of covenants of legal charities from seven to five years; and what would be the loss of revenue if such a proposal were adopted.
§ Mr. Boyd-CarpenterThe hon. Member will not expect me to anticipate my right hon. Friend's Budget statement. It is not possible to estimate precisely what this proposal would cost the Revenue, but it might be a considerable amount.
§ Mr. FreemanIs the hon. Gentleman aware that many charitable organisations which have adopted this practice are finding their subscribers very reluctant to enter into contracts for as long a period as seven years in these very uncertain days, and that, if the period was reduced, subscribers would probably renew their contracts and there would be no loss in revenue? Will he put this to the Chancellor of the Exchequer and ask him to give it serious consideration at the proper time?
§ Mr. Boyd-CarpenterThe hon. Gentleman may be reassured to know that under the present law the number of covenants of this sort is increasing.