§ 10. Mr. Liptonasked the Chancellor of the Exchequer what is the estimated additional amount of Profits Tax that will have to be paid by building societies.
§ Mr. Selwyn LloydApproximately £½ million.
§ Mr. LiptonIs it not obvious that if this extra Profits Tax is charged on building societies already operating on fairly narrow margins, about 2¼ million borrowers from those societies will have to pay higher rates of interest? Will the Chancellor bear in mind that ½ per cent. increase on a mortgage on a £2,000 house is equivalent to 11s. 8d. a month? Has he in mind the hardships that may be entailed for those 2¼ million borrowers?
§ Mr. LloydThe point is that the Royal Commission recommended that building societies should pay Profits Tax, and should be charged Profits Tax on the same basis on which other concerns are charged. I do not see my way to making an exception.