HC Deb 30 April 1981 vol 3 c896
6. Mr. Brotherton

asked the Chancellor of the Exchequer what revenue would be raised by the imposition of a 1 per cent. calendar month charge on credit card outstanding debts.

Mr. Peter Rees

It is not possible to estimate the revenue which would be raised, because figures are not available for outstanding debts on credit cards.

Mr. Brotherton

Given the plethora of plastic money that abounds—I take an example from my wallet—would not such a form of taxation be sensible? First, it would raise a considerable sum of money. Secondly, it would tend to reduce the amount of consumer credit slopping around the country.

Mr. Rees

With respect, I congratulate my hon. Friend on his creditworthiness. His suggestion is interesting. However, it would result in channelling borrowing into other areas and would not necessarily be the most effective way of raising money or of regulating such borrowing.