HC Deb 29 July 1953 vol 518 cc170-1W
Mr. Spearman

asked the Chancellor of the Exchequer whether he will make a statement about the restrictions on the raising of fresh capital by investment trusts and unit trusts.

Mr. R. A. Butler

Yes. I circulate herewith the text of a letter which I have sent to the Chairman of the Capital Issues Committee on this subject:

27th My, 1953.

I have been considering whether some relaxation might be made in our policy towards new issues by Investment Trusts and Unit Trusts.

Up to the present, consent has not been given for applications from these Trusts to raise fresh capital. I think that the time has come when some departure from the rigid application of this policy is desirable, having in mind the part played by the Investment Trusts in the supply of risk-bearing capital for industry and the need to encourage savings at the present time.

I would, therefore, ask the Committee to feel free in future to recommend consent, in appropriate cases, in respect of applications from Investment Trusts (including Unit Trusts).

(Sgd.) R. A. BUTLER.

The Right Hon. Lord KENNET, P.C., G.B.E., D.S.O., D.S.C.