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Budget Has Stormy Passage in House

28th April 1950, Page 52
28th April 1950
Page 52
Page 52, 28th April 1950 — Budget Has Stormy Passage in House
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Which of the following most accurately describes the problem?

THE imposition of a heavy purchase tax on vans and lorries was a direct attack on the economy and efficiency of our production and distribution. and was contrary to the exhortations so often heard from the Chancellor,

Mr. Winston Churchill, Leader of the Opposition, made this attack on the Budget this week during the debate in the House of Commons on the Government's proposals. The raising of fares, the deterrent placed on the sale of commercial vehicles and •the tax on their fuel were designed to force the travelling public and industry to use the nationalized railways, he added.

The purchase tax on goods vehicles was a departure from the history and purpose of the tax, stated Mr. Stanley. For the first time, the Chancellor was putting it on capital equipment.

Mr. Robens:,Parliamentary Speretary to the Ministry of Fuel and Power, said earlier in the debate that the imposition of the fuel tax was no justification for raising bus fares. Other items of cdst had to be taken into account by Licensing Authorities when considering increases. Another item, together with that of fuel, might in some cases justify higher fares; in other instances, a sufficient margin of profit would cover the additional expense. Even if raised, road fares would be below railway charge.

Mr. Robens also alleged that it was becoming more difficult to sell cornmercial vehicles on the home market. [The Society of Motor Manufacturers and Traders refuted this later in a statement. There were 400.000 outstanding orders for commercial vehicles, mainly light machines, it said.] The real purpose of the fuel tax, said Mr. Douglas Jay, Financial Secretary to the Treasury, was to assist economy in a dollar commodity, and that of the purchase tax to restrain excessive investment and to encourage exports.

Mr. Butler 'considered that if understanding between road and rail were to be reached, vindictive measures should not be adopted in the Budget.


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