§ Mr. Neil Hamiltonasked the Chancellor of the Exchequer, pursuant to his reply to the hon. Member for Surrey, North-West (Mr. Grylls), Official Report, 21 May, column 307, whether, in estimating the potential cost of the proposed tax change he took into account increases in revenue receipts which would be induced by such a measure as a result of (a) encouraging taxable persons to leave the black economy and trade legitimately and (b) encouraging the establishment of new businesses.
§ Mr. MooreThe Government's economic policies are already succeeding in stimulating large numbers of new businesses, as is confirmed by the recent article inBritish Business, 18 May, page 10. My right hon. Friend's Budget proposals will further stimulate business activity of varied types and size. Any particular effect which the particular tax change suggested by my hon. Friend the Member for Surrey, North-West (Mr. Grylls) would have, were it to be feasible within the present tax structure, is difficult to quantify but would probably be small.