asked the Chancellor of the Exchequer what is his estimate of the effect of reducing the standard rate of tax will have upon the ability of voluntary organisations to obtain funds through covenants; and if he intends to investigate methods of compensating such organisations for any loss of revenue.
[pursuant to his reply. 3 December 1979, c. 77–78]: The reduction in the basic rate from 33 to 30 per cent. will have the effect of reducing by about 4¼ per cent. a charity's receipts, from covenants and by way of income tax repayment, from payments made under "net" covenants. The Government will keep the position of charities under review, in the light particularly of any further reduction in the basic rate of tax.