§ 7. Mr. E. Johnsonasked the Chancellor of the Exchequer by what amount the receipts from entertainments tax for 1958 exceeded or fell below his estimate for that period.
§ Mr. ErrollRevenue estimates relate only to financial years and it is not the practice to revise Budget estimates during the course of the year.
§ Mr. JohnsonMay I ask whether the figures of attendances at cinemas indicate that the revenue will have fallen very sharply? Bearing that in mind, and while not wishing the hon. Gentleman to anticipate my right hon. Friend's Budget statement, may I ask whether this is not a very powerful argument for abolishing Entertainments Duty on cinemas altogether?
§ Mr. ErrollNo, Sir. Attendance figures by themselves would not be a reliable indicator, because the prices of 1492 admission are an important factor in estimating the yield of this tax.
§ 9. Mrs Braddockasked the Chancellor of the Exchequer if he is aware that the Walton Vale cinema, Liverpool, which closed on 31st January made a profit, during the year ended 1st November, 1958, of £194 and paid £1,801 in entertainments tax, whilst during the next three months it made a loss of £649 and paid £114 in tax, and that the Kensington cinema, Liverpool, which closed on 6th December, made a loss of £718 and paid £840 tax during the 50 weeks before that date; and what steps he will take to avoid similar closures and a resultant depression in the industry.
§ Mr. ErrollMy right hon. Friend is aware that these cinemas have closed but I cannot anticipate his Budget.
§ Mrs. BraddockIs the hon. Gentleman aware that these are only two examples of the many which could be given in relation to the losses of these cinemas? In view of the fact that the cinema industry is facing unfair competition and is in a very difficult position, will he consider abolishing Entertainments Duty altogether?
§ Mr. ErrollI regret that I cannot say more to the hon. Lady than what is contained in my main Answer.