§ 42. Mr. Croninasked the Prime Minister whether the speech made by the President of the Board of Trade at Liverpool on 17th January, 1961, about the effects of high rates of direct taxation 778 on business effort and risk-taking, particularly in the export market, represents the policy of Her Majesty's Government.
§ The Prime MinisterIn the remarks to which the hon. Member has drawn attention, my right hon. Friend the President of the Board of Trade was not stating a policy but expressing a view, with which I agree.
§ Mr. CroninWill the Prime Minister bear in mind during the coming months that while there might be a case for reducing Income Tax—
§ Mr. NabarroThere jolly well is.
§ Mr. Cronin:—the lost revenue might be made up by a capital gains tax or more strict control of business expenses? Will he also bear in mind that there is no case whatever for reducing direct taxation if it means transferring the burden from the rich to the less affluent members of the community?
§ The Prime MinisterAll relevant matters will be borne in mind.