HC Deb 22 November 1956 vol 560 cc1912-3
16. Mr. Swingler

asked the Chancellor of the Exchequer his estimate of the annual loss of revenue from entertainments tax resulting from the closure of cinemas during the current financial year.

Mr. H. Brooke

I cannot make this estimate, because it is not known how far the former patrons of the closed cinemas now attend other cinemas.

Mr. Swingler

Whilst recognising the excellent co-ordination between the Treasury and the Board of Trade, might I ask the right hon. Gentleman if he does not realise that some loss will inevitably be sustained in view of the fact that more than 160 cinemas have already closed this year and that another 100 will probably close shortly? Does he not realise that there is some connection between this and the incidence of Entertainments Duty, and would he, therefore, pay some attention to that aspect of the matter?

Mr. Brooke

My right hon. Friend the Chancellor of the Exchequer has undertaken to review the whole Entertainments Duty thoroughly before the next Budget, and this, and all other matters, will be taken into consideration.

Mr. H. Wilson

But do not both the closures of the cinemas and the falling yield of Entertainments Duty from them bear out what was said from these benches a few months ago, when we warned that the Treasury has long passed the point of diminishing returns in Entertainments Duty; and will the right hon. Gentleman say whether the inquiry into this duty is, in fact, being currently carried on in his Department?

Mr. Brooke

The answer to the second part of the right hon. Gentleman's Question is, "Yes"; and the answer to the first part is that he is not always right. In fact, the yield of the Entertainments Duty is up in the first six months of this year.