Post-War Credits.

Oral Answers to Questions — National Finance. – in the House of Commons on 17th February 1942.

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Photo of Sir Robert Cary Sir Robert Cary , Eccles

asked the Chancellor of the Exchequer whether he is aware of the widespread feeling among working people that registration of the post-war credit is too indefinite and gives to the individual no proprietary interest in the future; and will he consider the advisability, in his forthcoming Budget, of giving the postwar credit more tangible form either by the issue of a special credit bond to be held by each individual or some other means of savings receipt?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Section 7 of the Finance Act, 1941, makes definite provision for the allowance of post-war credit and there should be no doubt in the mind of anyone that the provisions of the law will be implemented. I have been aware, however, of the necessity for bringing this home to taxpayers generally, and steps have been taken to that end by broadcasting and otherwise. Moreover, it is proposed to issue to every taxpayer a statement showing the amount of the credit to which he is entitled for each year, and this individual notification will be issued showing the credit for the current year 1941–42 as soon as the assessment for the year is complete and the amount of the credit has been computed.

Photo of Sir Robert Cary Sir Robert Cary , Eccles

Will the right hon. Gentleman consider the advisability of increasing the size of the post-war credit in relation to earnings above a certain level of overtime work?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

If I said anything about that, I should be anticipating my Budget statement.

Colonel Arthur Evans:

asked the Chancellor of the Exchequer whether, in view of the increasing tendency to arrange for post-war credits to be made available to a large proportion of the population, including Income Tax payers and Service personnel, he has any special plans for ensuring that the value of these credits will not be prejudiced by further substantial reduction in the purchasing power of the pound?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

It is an essential feature of the Government's policy to take all possible steps to restrict inflation and to maintain the purchasing power of the pound. This, as my hon. and gallant Friend rightly suggests, has an important bearing on the system of post-war credits.

Photo of Mr Alfred Edwards Mr Alfred Edwards , Middlesbrough East

Is the right hon. Gentleman aware that that is quite incorrect? The Government are making the increase, and the Government alone are responsible for the inflation?