HC Deb 23 November 1971 vol 826 c1124
21. Dr. Marshall

asked Mr. Chancellor of the Exchequer what action he is taking to prevent any flow of Exchequer revenue into political party funds, through tax allowances in respect of advertisements placed by business companies in any publication whose profits go to a political party.

Mr. Patrick Jenkin

The general rule is that expenditure is allowable only if it is incurred wholly and exclusively for the purposes of the business. If the hon. Member has particular cases in mind, I will look at them.

Dr. Marshall

While thanking the Minister for that reply, may I ask him to examine a particular case which has been brought to my notice recently—namely, that of the "Mid-Yorkshire Businessmen's Diary", the profits of which go to the Conservative Party?

Mr. Jenkin

If there are profits, they are themselves taxed; but I will certainly look into the case mentioned by the hon. Gentleman.

Mr. Joel Barnett

Will the hon. Gentleman now answer the Question and not evade the issue? Is it not a fact that advertisements are placed in brochures at a price clearly out of line with the readership of those brochures? Will he look at the whole question of these expenses and advertisements to see whether they are wholly and exclusively incurred?

Mr. Jenkin

I am not sure that the hon. Gentleman is on a good point. It would be extremely difficult for local inspectors of taxes to weigh up the prices paid for all advertisements in all journals—[Interruption]—and I cannot believe that hon. Gentlemen opposite think that such an exercise would be easy. However, I will look into any particular cases that are brought to my attention.