§ 4. Sir G. Nabarroasked the Chancellor of the Exchequer whether he will now introduce the necessary legislation to admit all interest on bank overdrafts as a charge against liability to income tax and surtax, to be effective from 19th June, 1970.
§ The Chief Secretary to the Treasury (Mr. Maurice Macmillan)We shall carry out our pledge; but beyond that I cannot commit my right hon. Friend.
§ Sir G. NabarroWill the Chancellor of the Exchequer bear in mind that in the summer of 1969 the shadow Chancellor of the Exchequer gave a specific pledge in this matter? As the cost of implementing that promise is trifling, could not this at least be done at an early date and so prevent much contentious appeal to the Commissioners of Inland Revenue?
§ Mr. MacmillanThere is no case, I think, for favouring interest on bank overdrafts as opposed to other such annual charges. The shadow Chancellor of the Exchequer's speech referred to annual interest, and we shall carry out that pledge, but I cannot now say when.
§ Mr. LawsonIf this is done in respect of bank overdrafts, will the same be done in respect of hire-purchase contracts which are entered into by ordinary working people.
§ Mr. MacmillanThat is another question.