HL Deb 02 December 1964 vol 261 cc1094-5

2.57 p.m.

LORD DERWENT

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they are aware that considerable concern is being expressed by persons wishing to increase their personal savings by means of With Profit Life Assurance Policies because of the uncertainty as to whether these policies will be subject to the proposed capital gains tax, and how soon Her Majesty's Government will be announcing a decision on this matter.]

LORD RHODES

My Lords, as I mentioned in answer to the noble Lord, Lord Conesford, my right honourable friend the Chancellor of the Exchequer is considering making a preliminary statement on some aspects of the proposed capital gains tax and he is aware that there is great interest in this matter. I must again ask the noble Lord to be so good as to await the outcome of the Chancellor's consideration.

LORD DERWENT

My Lords, the only thing I gather from that Answer is that Her Majesty's Government do not think that this is a matter of urgency. Are Her Majesty's Government quite unaware that savings help to strengthen the economy, and that at the moment savings are being affected by this uncertainty?

LORD RHODES

My Lords, we are well aware of these important points; but I think noble Lords opposite must agree that I have given them the satisfaction of a good run, and perhaps I may be allowed to finalise it by saying, will they await the outcome of the Chancellor's consideration?

THE EARL OF DUNDEE

My Lords, is the noble Lord aware that the Chancellor of the Exchequer has already, in one or two particulars, anticipated and explained his intentions in regard to the capital gains tax and the corporation tax? Will he represent to the Chancellor that it really is most urgent that he should hurry up his consideration on this matter, because the delay is a great deterrent to savings and to investments; and will he make a statement as early as possible?

LORD RHODES

My Lords, the real reason for my having given this statement to-day is the expectation of something being said by the Chancellor of the Exchequer. Again, I ask noble Lords to await it.

THE EARL OF DUNDEE

My Lords, can the noble Lord say when? Before Christmas?

LORD RHODES

My Lords, I cannot say.

LORD CARRINGTON

My Lords, we do not want a good run; what we want from the noble Lord, if I may say so, is a good answer. It seems to me that really what has happened is that taxes have been announced without their being thought out beforehand. I hope the noble Lord will give an assurance that this is not an occasion which will be repeated in the future.

LORD RHODES

My Lords, I thought my remark about a "good run" was a good one for noble Lords opposite, and that they had understood it. I must again say to the noble Lord, will he await the outcome of the Chancellor's statement?