§ 10. Mr. W. Hamiltonasked the Chancellor of the Exchequer whether, in view of his recently announced policy of seeking to restrain rises in personal incomes, he will now rescind the proposed concession to Surtax payers.
§ Mr. Selwyn LloydNo, Sir.
§ Mr. HamiltonCan the right hon. and learned Gentleman explain how on earth he expects organised workers to understand either the logic or the justice of his appeal to them to restrain their incomes when at the same time he is giving out £83 million to the wealthiest section of the community?
§ Mr. LloydI have altered the basis of assessment. In that case there had been a pause of something like forty years since the time 'it was originally introduced. I did it for economic reasons, because I wanted to put a certain section of the community on a tax basis comparable with that of our competitors. I have seen the posters: "Wages and Salaries Frozen. £80 million for the Surtax payers." In fact, between April, 1961, and January, 1963, when this relief comes into effect, I think that wages and salaries will have gone up by about ten times that amount.
§ Mr. HamiltonDoes the right hon. and learned Gentleman recollect that this Surtax concession was given with the express hope that it would provide an incentive to exporters? Will he give an undertaking that if exports do not increase to the extent that he visualised when the concession was first introduced it will be withdrawn?
§ Mr. LloydCertainly not. The purpose of the concession was to put a certain important section of the community on a basis comparable with that of our competitors overseas.
§ Mr. JayBut as the right hon. and learned Gentleman also said that one purpose of the concession was to obtain an increase in production, and as production has since fallen, will not he reconsider the concession?
§ Mr. LloydCertainly not. I am absolutely convinced that, in the long term, what I have done is right.