Increase of Value Added Tax

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 3 July 1979.

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Photo of Mr Peter Rees Mr Peter Rees , Dover and Deal 12:00, 3 July 1979

I am sure that, like me, my hon. Friend the Member for Wallasey will take full note of what my hon. Friend has said.

The hon. Member for Don Valley (Mr. Welsh) appeared to be a little ambivalent in his approach to charities. I was not certain whether his heart was entirely with them. He made the interesting point about the reduction in income tax not favouring charities. That is a matter that we can consider on another occasion—perhaps in our debates on this Bill. I remind him that it was the late Hugh Dalton who first restricted the relief for charitable convenants to income tax at the standard rate. The hon. Member also raised the question of charity shops. I think that this arises on his amendment No. 4 by which he wants to provide relief for any goods or services supplied to or by registered charities. I think that he will accept that charity shops, operating in a purely commercial field, however the net profits will ultimately be applied, are competing with perfectly straightforward commercial organisations. It is worth considering, therefore, whether they should be put in a favoured position in that regard.

I come now to the right hon. Member for Wythenshawe. I am profoundly sorry that he did not receive as promptly as he would have wished an answer to his question. I have had the position checked. His question was not marked as a priority question, although whether or not it was marked "priority" it deserved the most urgent consideration.