HC Deb 25 October 1966 vol 734 c129W
44. Mr. Chapman

asked the Chancellor of the Exchequer on what calculation of its probable effect on employment levels and output in the coming year he fixed the hire purchase restriction on motor cars at 40 per cent. down payment and two years to pay, a severity not previously imposed for ten years.

Mr. Callaghan

The level of Purchase Tax and the period for hire purchase repayments were determined in the light of the overriding need to reduce consumption and so achieve a rapid improvement in the balance of payments.