HC Deb 01 April 1976 vol 908 cc1561-2
12. Mr. Christopher Price

asked the Chancellor of the Exchequer when he intends to re-integrate the investment income of children with that of their parents.

Mr. Denzil Davies

I cannot anticipate my right hon. Friend's Budget Statement.

Mr. Price

I accept that, but is my hon. Friend aware that this excellent Socialist redistributive measure was introduced seven years ago by my right hon. Friend the present Home Secretary when he was Chancellor of the Exchequer? Will the Minister remind his right hon. Friend the Chancellor of the Exchequer that in his forthcoming Budget he will not wish to appear to be any less Socialist than his predecessor was in 1969?

Mr. Davies

I have no doubt that my right hon. Friend is well aware of my hon. Friend's views on this matter.

Mr. Mike Thomas

Will my hon. Friend confirm that his right hon. Friend is still committed to this measure? On several occasions the Chancellor of the Exchequer has stated that he is committed to it but has put forward technical reasons, such as the length of the Finance Bill, why he cannot incorporate it. Is he still in favour of it?

Mr. Davies

As my hon. Friend says, a number of technical matters have to be considered. I assure him that everything he says will be taken into account.

Mr. Ridsdale

Does not the Minister wish to encourage savings? Are not the Socialist measures that the Government introduce one way of preventing real saving?

Mr. Davies

Of course, we want to encourage savings. Most of these measures are tax avoidance, measures which have nothing to do with saving. They are an attempt to shift income from wealthy parents to children with lower tax rates.