HC Deb 14 April 1927 vol 205 c557W
Commander BELLAIRS

asked the Chancellor of the Exchequer the estimated yield in 1926–7, allowing for the increased use of cheques, if 1d. cheques had been in circulation instead of 2d. cheques; what was the yield of 2d. cheques; and what is the estimate of the ultimate gain in a reduction of the currency notes if we return to the system of 1d. cheques?

Mr. RONALD McNEILL

The stamp duty on cheques was increased from ld. to 2d. in 1918. Since that date the revenue at the higher rate of tax apart from minor variations due to exceptional circumstances, has shown a steady increase. The net receipt was £2,890,400 in 1919 and £3,421,684 in 1925–26. It is not practicable to estimate what the yield would have been on the basis of 1d. stamp duty. With regard to the last part of the question, I observe that the Colwyn Committee considered that "the effect of the 2d. stamp is a good deal exaggerated" and that as regards the prospect of a reduction in the duty reducing the currency note circulation "we cannot believe that such a step would have any considerable bearing on the monetary position even if the result were a marked increase in the use of cheques."