Finance Bill

Part of the debate – in the House of Commons at 12:00 am on 5 June 1962.

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Photo of Mr Douglas Houghton Mr Douglas Houghton , Sowerby 12:00, 5 June 1962

I do not know what the Chancellor means when he says that he intends to think over what has been said. Does he propose to do anything about the comments that have been made? Certainly my hon. Friends would wish to remove any anomalies within the framework of the original restriction, but we would not favour any relaxation of the limitation put on the capital allowances last year.

We went over all this ground on that ocassion. We had long debates on the subject, and unless something has happened which was unexepcted then, or unless more serious damage has occurred than was contemplated last year, I see no reason for reopening the matter in principle now. There is something to be said for sticking to what we do, at least for a reasonable period, and not chopping and changing about each year, because that creates other difficulties

It is disturbing to hear hon. Gentlemen opposite suggest that the only way Rolls Royce can be kept in business is by giving tax reliefs on capital allowances to well-to-do firms which want prestige cars for their directors and executives. If Rolls Royce's name is so good, and we know that it is, and is worth preserving, and if its home market is worth maintaining and developing, business should be prepared to pay for such vehicles and not ask the Chancellor of the Exchequer to forgo substantial amounts of revenue in tax allowances on their capital outlay.