HC Deb 23 May 1963 vol 678 cc640-1
Q7. Mr. A. Lewis

asked the Prime Minister whether the public speech made by the First Secretary of State on 15th May at the British Engineers Association lunch, making reference to future tax cuts, represents the policy of Her Majesty's Government.

Mr. R. A. Butler

I have been asked to reply.

I did not in fact forecast further tax cuts. What I did was to reaffirm the Government's intention to take whatever steps are necessary to secure the expansion of the economy. In emphasising this resolve my remarks certainly represented the policy of Her Majesty's Government which has repeatedly been made clear.

Mr. Lewis

Did the First Secretary of State advise those at the luncheon of the fact that the Chancellor of the Exchequer at the time of the last General Election also introduced tax cuts just before the election and when the Tory Government came back they put those taxes back with interest? If the right hon. Gentleman did not do that, will he remind the people of the country now?

Mr. Butler

I made no such observations at the luncheon. I simply reminded my hearers that there are powers, which are referred to in the recent Budget, which are available for dealing with difficulties in the economy at any time. We have still problems in the North-East and other regions and it is our determination to maintain an active control of the economy.

Mr. Shinwell

Are there not going to be any further tax cuts?

Mr. Butler

No such statement has been made by me or anybody else.

Mr. Callaghan

Whatever the First Secretary of State said, did he obtain the consent of the Chancellor of the Exchequer? Was his statement made with the Chancellor's approval, as it appeared in the Press? Secondly, is the right hon. Gentleman aware that, with the rises in prices which have taken place over the last eighteen months, any decrease of Purchase Tax which is less than 10 per cent. will do no more than put prices back where they were then?

Mr. Butler

I have no observations to make on the latter part of the supplementary question. As to the first part, the Chancellor of the Exchequer and I work in perfect harmony.