§ The Chancellor of the Exchequer (Mr. James Callaghan)I turn now from the business world to the very large question of avoidance of Surtax. There is a great deal to be done here; and this year I propose to make a start with covenants. Deeds of covenant by Surtax payers result in too much of their bounty being provided at the Exchequer's expense. For this reason, sums paid to charities under covenant are not allowed as Surtax deductions and I now propose to extend this disallowance for Surtax to all payments under covenant. This will apply to all covenants entered into after today.