§ 19. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will reduce Purchase Tax and Excise Duties by 10 per cent. on 1st January, 1970.
§ Mr. DiamondI am afraid the hon. Member must wait and see.
§ Mr. Bruce-GardyneWill the right hon. Gentleman give serious consideration to the proposal? Is it not a fact that owing to the continual increases in taxation imposed by the present Government every new increase now merely encourages spending in anticipation of the next? Does not he think, therefore, that a promise of a reduction might lead to a reduction in consumer spending meanwhile, or does he simply think that it would not be believed?
§ Mr. DiamondI will, of course, consider anything the hon. Gentleman puts to me. It must inevitably be the case that certain conclusions are drawn if taxes go up regularly, and that other conclusions will be drawn if they come down from time to time.