Orders of the Day — Finance Bill

Part of the debate – in the House of Commons at 12:00 am on 11 June 1958.

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Photo of Mr William Coldrick Mr William Coldrick , Bristol North East 12:00, 11 June 1958

I beg to move, in page 31, line 2, at the end to insert: 5. Floor coverings, tiles, strips and blocks, previously chargeable under Group 9 at 15 per cent. shall be chargeable at 5 per cent. This Amendment would have the effect of reducing Purchase Tax on the items mentioned from 15 per cent. to 5 per cent. I find it extremely difficult to discover upon what principle the Chancellor proceeds to operate when applying the tax to these items. One thing is certain, that he does not operate on the principle of the greatest good to the greatest number. I rather suspect that what he does is to look round, find things which are sold in the smallest quantities which would represent the least concession and, having made that concession, to come forward with a great gesture.

In all other forms of taxation, particularly in Income Tax, we have a graduated system which makes it possible for people with very small incomes either to be exempt or to pay very small contributions. One would have thought that the same principle would operate in the case of Purchase Tax. When we had a Labour Government we were constantly pressing for and receiving concessions giving exemption for those things which were indispensable in the home. I recognise that some concessions have been made in relation to carpets and I welcome those concessions. I welcome all concessions on Purchase Tax, but if the Chancellor cannot give complete concessions or grant complete exemptions one would expect him to take into consideration cases of greatest hardship.

No one would imagine that people would buy linoleum if they could afford to buy carpets. People buy linoleum and the cheaper forms of floor covering because they cannot afford the more costly forms. I should have imagined that the Chancellor would recognise that as floor covering is indispensable he would encourage the poorest housewife to purchase these things without the penalty of any Purchase Tax on them. That would represent a comparatively small concession. There are a number of other items listed in this Amendment and I have no doubt that others who know more about those things than I do will probably speak about them.

I appeal to the Chancellor at least to make a concession in respect of linoleum and the cheaper forms of floor covering if he cannot find it possible to make concessions covering the wider range of items.