Clause 12. — (Changes in Rates of Purchase Tax.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 12 May 1959.

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Photo of Sir Douglas Glover Sir Douglas Glover , Ormskirk 12:00, 12 May 1959

I am sure that the right hon. Gentleman does not mind. I may slip again, because certain of my facts in this matter are not as firm as they might be.

The Utility scheme was done away with just after the Labour Party left office because it was breaking down. It no longer operated successfully or to the advantage of the people. [An HON. MEMBER: "Why? "] Because there was an artificial ceiling for each article. Let us consider, for instance, a woman's dress. [Interruption.] I have been in this trade all my life and I know what I am talking about. When one put a good button on a dress it was immediately pushed into the 25 per cent. Purchase Tax category. If a cheap button was put on the dress it did not pay that rate of tax, but it was not attractive to the woman. That was happening throughout the whole of the fashion trade. It was necessary, therefore, to do away with the Utility Scheme.