HC Deb 26 October 1971 vol 823 cc1464-5
20. Mr. Marks

asked the Chancellor of the Exchequer if he will now make a further statement on public expenditure in relation to the cuts in purchase tax announced in July.

Mr. Maurice Macmillan

No, Sir; I am not clear to what aspect of public expenditure the hon. Gentleman is seeking to relate cuts in purchase tax, but I must in any case ask him to await the Government's forthcoming White Paper on Public Expenditure.

Mr. Marks

The hon. Gentleman makes a great fuss about tax cuts but little about the fact that this is a loss to the Revenue. How much loss will result to the Revenue from the July cuts, and has the hon. Gentleman any items of public expenditure which he will cut as a result?

Mr. Macmillan

The hon. Gentleman must await the details in the Public Expenditure White Paper, because the relationship is neither as precise nor as direct as he implies.

Mr. Edward Taylor

Would my hon. Friend agree that although the cuts in purchase tax were greatly welcomed, when such a change takes place some retailers lose a considerable amount of cash on stocks in hand? Will he bear that in mind when considering changing over to V.A.T.?

Mr. Macmillan

There is a later Question on that point on the Order Paper.