§ 7. Mr. Ashleyasked the chancellor of the Exchequer what representations he has received about the effect of his Budget on charities and what replies he has sent.
§ Mr. Joel BarnettRelatively few representations have been received about the effect of the Budget on charities. The replies sent have indicated that such bodies enjoy very considerable fiscal advantages, some of which will be made more valuable by the Budget proposals.
§ Mr. AshleyIs my hon. Friend aware that my right hon. Friend the Chancellor has been very helpful over the problems of disabled children who are affected by the Budget, but that, in spite of my hon. Friend's answer, many charities have been highly critical of the Budget as it affects their finances? The Spastics Society has called it a black Budget for charities. In view of the reasonable problems which have been raised by charities, is not it possible for reconsideration to be given to the Budget proposals affecting them?
§ Mr. BarnettAs I said in my main answer, we have received relatively few representations. I note what my hon. Friend says, but we are satisfied that the Budget as a whole was actually advantageous to charities.
§ Mr. BurdenIs the Chief Secretary aware that the increase in national health contributions, which is considerable, will impose great hardships on a number of charities, especially those employing many people?
§ Mr. BarnettIn fact, the working of the income tax system, by a covenant, will help many charities, particularly the 1302 larger charities, which I am sure the hon. Gentleman has in mind.
§ Mr. William HamiltonDoes my hon. Friend understand that Eton and Harrow public schools are very concerned? Will he undertake to accept an amendment to the Finance Bill to make sure that they get their deserts under the term "charity"?
§ Mr. BarnettMy hon. Friend has hit on one of the major problems—the definition of charities. We are examining the matter.