§ 14. Mr. Adam Butlerasked the Chancellor of the Exchequer whether he has decided the size of the first slice of investment income relief, and at what rate this will apply.
§ Mr. BarberNo, Sir. This will be fixed in the 1973 Budget.
§ Mr. ButlerWould my right hon. Friend bear in mind especially the position of the pensioners who in some cases 1064 are able to save during their working lives? Would he try to ensure that no tax obstacle is placed in their way to prevent them from putting aside sufficient to provide an income which will bring them at least to subsistence level and without having any effect on the State pensions they draw?
§ Mr. BarberThose are certainly matters which I shall bear in mind.
§ Mr. Roy JenkinsCan the right hon. Gentleman not give us some broad idea of what he has in mind? Unless we know whether he is thinking of a figure of £50, £500, or even £5,000, it is impossible to debate the principle of the matter.
§ Mr. BarberI think that there is an Amendment down for discussion this afternoon in the name of the right hon. Gentleman. If he does not think it worth while discussing it, no doubt he will withdraw it and we shall get on with something else. I can only tell the right hon. Gentleman—and as an ex-Chancellor he will appreciate this—that it would be irresponsible to make a commitment now. It is only sensible that decisions on this matter should depend upon the circumstances in April, 1973, which is when the surcharge will come into operation.
§ Mr. JenkinsThe Chancellor should not try to take false points. I quite agree that he could not give an absolute commitment, but it does not make sense to discuss this unless he can give us some indication of what is in his mind. He must know whether he is thinking of a broad exemption or a very narrow one
§ Mr. BarberIf it is any guidance to the right hon. Gentleman I can tell him that it is unlikely that we shall accept his Amendment.