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Cotton Textile Industry (Taxation)

Volume 416: debated on Tuesday 20 November 1945

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53.

asked the Chancellor of the Exchequer whether he is aware that despite the recent changes in taxation designed to encourage the re-equipment of factories with new machinery, many firms in the cotton textile industry are hesitating to re-equip themselves owing to the high costs involved; and whether he will review the possibility of making further concessions in this matter.

No, Sir. Recent encouragements, by way of changes in tax rates, allowances and refunds, including those proposed in the Finance Bill, should be sufficient to stimulate all enterprising firms to re-equip themselves.

Is the Chancellor aware that the price of new machinery has gone up to three times what it was before the war, and that even with the concession, it is impossible for the smaller manufacturer to re-equip?

Does the hon. Member want me to withdraw the concession, if it is of no use?