HC Deb 12 November 1953 vol 520 cc1135-6
36. Mr. John Hall

asked the Chancellor of the Exchequer if he will make a further statement on his policy regarding a revised method of announcing and implementing Purchase Tax changes which will reduce the danger of a trade recession in the weeks before the 1954 Budget.

The Financial Secretary to the Treasury (Mr. John Boyd-Carpenter)

My right hon. Friend has been asked by a number of trade interests to make any necessary Purchase Tax changes next year in January rather than in April; and, as he said in reply to a recent Question, he will certainly bear those representations carefully in mind in coming to a decision on this matter.

Mr. Hall

Is the Financial Secretary aware that the confident anticipation that there will be reduction or even abolition of this particular form of taxation may have a very bad effect upon trade in general in the weeks before the Budget? Will he look at the matter again to see whether it is not possible to devise a system which will enable this matter to be dealt with this year?

Mr. Boyd-Carpenter

I agree that this is an important problem. That is why my right hon. Friend is studying it.

Mr. Anthony Greenwood

When does the Chancellor expect to be able to make a decision on this matter, because it is of vital interest to many trading concerns?

Mr. Gaitskell

While recognising that much of the trouble in this matter has been caused by the Chancellor of the Exchequer's rash statements and half promises made at the time of last year's Budget, may I ask the hon. Gentleman whether he will reply to my hon. Friend's question when a decision is likely to take place? Is he aware that on this side of the House we are much concerned with the danger created by the right hon. Gentleman's conversations in these matters and think that this matter should be seriously investigated?

Mr. Boyd-Carpenter

The right hon. Gentleman should be well aware that my right hon. Friend made no rash promises or half statements. If the right hon. Gentleman would be good enough to examine what my right hon. Friend said during the Finance Bill debates he would see that no grounds were given for any expectations of the kind to which he has referred. In reply to the hon. Member for Rossendale (Mr. Anthony Greenwood), I cannot say anything more today.