£1 Notes (Hansard, 14 April 1960)

§ 1. Mr. Langford-Holt
asked the Chancellor of the Exchequer when he intends to withdraw from circulation all the old £1 notes as a measure against tax evasion.

§ The Economic Secretary to the Treasury (Mr. Anthony Barber)
It is not proposed to call in the old £1 notes from circulation as suggested by my hon. Friend. But I am advised that most of the old notes which are in active circulation are likely to be replaced in the ordinary course of events within the next eighteen months.

§ Mr. Langford-Holt
Will not my hon. Friend reconsider this question? It is an old one. Is he not aware, because if he is not he is probably the only person who is not, that there are hundreds of millions of £1 notes up chimneys, under mattresses and in pillows on which tax never has been and never will be paid?

§ Mr. Barber
As a result of my hon. Friend's Question, the Inland Revenue considered this suggestion again, which, as my hon. Friend pointed out, is not a new one. The Inland Revenue is still of the opinion that the comparatively small advantage of detecting tax evasion would not justify the immense amount of work involved.

§ Mr. Lipton
How does the Inland Revenue know that only a small amount is involved, in view of the well-known habit of tax dodgers to keep large sums in Treasury notes hidden under the bed and in other parts of the house? Would it not help to winkle out tax dodgers if the Treasury said that unless all Treasury notes were handed into a bank by a certain date they would cease to be legal tender?

§ Mr. Barber
I am sure that the Commissioners of Inland Revenue will take note of the hon. Gentleman's expertise. In fairness, I think it is reasonable to rely on the judgment of the Commissioners of Inland Revenue who have great experience in this matter.

§ Sir T. Moore
In this connection, would my hon. Friend consider withdrawing the ugly and unpleasing new notes and replacing them with something more worthy of Britain?

§ 13. Mr. Lipton
asked the Chancellor of the Exchequer how many new and old £1 notes are in circulation; and when he will withdraw the old £1 notes from circulation.

§ Mr. Barber
On 6th April, approximately 1,180 million old and 60 million new £1 notes were in circulation. It is not proposed to withdraw the old £1 notes from circulation, but most of those which are in active circulation are likely to be replaced in the ordinary course of events within the next eighteen months.

§ Mr. Lipton
Will the Minister not say that unless the old notes are banked within the next eighteen months they will cease to be legal tender? Is he not aware that out of the £1,100 million old notes supposed to be in circulation quite a proportion of them are tucked away by Income Tax dodgers?

§ Mr. Barber
I have already paid tribute to the right hon. Gentleman's knowledge of these matters [Laughter.] As I said earlier, to be a little more serious, the Inland Revenue did, as soon as my hon. Friend's Question was put down, reconsider this matter, and it also, of course, took into account what occurred in other countries shortly after the war. The Department still feels that it would not really be worth while.