HC Deb 01 May 1958 vol 587 c555
10. Mrs. Mann

asked the Chancellor of the Exchequer by what figure the Budget reductions on Purchase Tax have reduced the cost of living.

Mr. Simon

While the Budget changes will represent only a fraction of a point in the Index of Retail Prices, they will nevertheless reduce the burden of taxation this year by about £30 million.

Mrs. Mann

How does the hon. and learned Gentleman arrive at these conclusions? Is he not aware that the relief from Purchase Tax is not being passed on and will not be passed on? The hon. and learned Gentleman, in reply to my hon. Friend the Member for Coventry, South (Miss Burton), referred to what was said by the President of the Board of Trade on 24th April, when the right hon. Gentleman was asked if he would ensure, by legislation, that Purchase Tax reliefs are passed on to the consuming public and not delayed on the way. The right hon. Gentleman gave an unequivocal "No, Sir." So they can do as they like. The hon. and learned Gentleman's right hon. Friend instead of being a Santa Claus is, therefore, a wolf in sheep's clothing.

Mr. Simon

There is no question but that by and large the Purchase Tax reductions are being passed on to the public, as anybody going through the shopping centres of any town can see.

Mr. Jay

Can the Financial Secretary tell us how much of this £30 million has been passed on?

Mr. Simon

The right hon. Gentleman, who was Financial Secretary himself, knows that the £30 million is for the rest of the year.

Mr. Hirst

Is my hon. Friend aware that, ever since Budget Day, the national and local newspapers have been absolutely smothered with advertisements showing reductions of price?

Mr. Simon

Yes, Sir.