HC Deb 14 April 1959 vol 603 cc805-6
38 and 39. Mr. Rankin

asked the Chancellor of the Exchequer (1) what would be the cost of extending the tax-free allowance in respect of cinema admissions from Is. 6d. to 2s. 6d., assuming the balance is divided as at present, namely, one-third to the Exchequer and two-thirds to the cinema; and

(2) the cost of extending the tax-free allowance of Is. 6d. to 3s. in respect of cinema admissions, assuming the balance is divided as at present, namely, one-third to the Exchequer and two-thirds to the cinema.

Mr. Amory

Five and a half million pounds a year for 2s. 6d. and £7¼ million a year for 3s. Od.

Mr. Rankin

Does the Chancellor realise that if he accepted the suggestion of extending the tax-free allowance to 3s., 83 per cent. of the cinema admissions in this country would be free of tax altogether, which would still leave us very much behind America, where the number amounts to 95 per cent.? Does he realise that if he does not do something about cinemas a great many will be closed down by his lack of action in the Budget, whereas they might have been able to keep open if he had given them some relief?

Mr. Amory

I should point out to the hon. Member that I think the main reason for closures of cinemas is lack of public support and not this particular duty. I should not be surprised if this matter also arose during our discussions on the Finance Bill.