HC Deb 28 July 1953 vol 518 cc1063-5
4. Mr. K. Thompson

asked the Chancellor of the Exchequer what steps he proposes to take to avoid the disruption of the retail trade in articles subject to Purchase Tax which will be experienced in the first quarter of 1954 if traders and consumers are left without guidance about the likelihood of changes in the rate of tax; what recent consultations he has had with representatives of traders; and what current instructions his officials have to seek a solution to this problem.

Mr. R. A. Butler

I can assure my hon. Friend that we shall watch the position very carefully. I cannot add to what my hon. Friend the Financial Secretary to the Treasury said on this subject on 22nd June during the Finance Bill debates.

Mr. Thompson

Will my right hon. Friend bear in mind that there are two very serious factors implicit in this Question? One is the loss which the trader suffers when Purchase Tax is reduced, as we hope it will be, and the other is the disruption of trade by the uncertainty in the minds of traders about what is going to happen to Purchase Tax and when it will happen. Will my right hon. Friend keep these factors in mind when framing his next Budget?

Mr. Butler

Yes; of course, they have been very much in my mind, and I only hope that the traders will try to be as calm as they possibly can in these difficult circumstances.

Lieut.-Colonel Lipton

Is the right hon. Gentleman aware that it is very difficult to expect the trading community to be calm when they have this great worry hanging over them all the time? Cannot the right hon. Gentleman throw even a glimmer of light to help to relieve the trading community of their anxiety?

Mr. Butler

I cannot alter the financial procedure under which we have our Budget annually. There are, of course, powers to alter Purchase Tax at all times of the year, but I cannot alter those powers either.

30. Mr. Jay

asked the Chancellor of the Exchequer if he will now state the policy of the Government arising out of the Grant Committee on valuation of goods for the purpose of Purchase Tax.

Mr. R. A. Butler

I am still receiving representations from the trade associations, and I have nothing further to add to my statement on this matter at the Report stage of the Finance Bill.

Mr. Jay

As the Chancellor has now had this Report for about four months, and as it was thoroughly considered by this Committee for a whole year, with all these representations before it, why is it that the Chancellor cannot make up his mind even now?

Mr. Butler

The first reason is that there was a majority and a minority Report, both of which have to be examined. The second reason is, as I stated in the Finance Bill debate, that we have not received anything like a unanimity of opinion from the trade associations consulted as to their choice between the majority and minority Reports or as to alternative suggestions. When I can get a clear picture I shall make a clear decision.

Mr. Jay

How is it that the Chancellor was able to make up his mind in quite the contrary sense to all the trade representations which he had received on the Hutton Report?

Mr. Butler

The Hutton Report was a unanimous Report and we were able to accept it.

Mr. Anthony Greenwood

Could the Chancellor at any rate give some approximate idea of how long it will take him to reach a conclusion on this matter?

Mr. Butler

I could not give an exact date, but I am aware of the importance attached to the question by hon. Members, some of whom are personally interested in it. I shall come to a decision as soon as I reasonably can.