Finance (No. 2) Bill — Tax credit compensation for charities with investments in mixed funds — 30 Jun 1998

I beg to move, That the clause be read a Second time.

The new clause attempts to incorporate into the Bill a tighter definition of what the Government mean by national debt. The matter has assumed greater importance since the publication, some two weeks ago, of the Government's public expenditure plans, which signal a marked increase in public expenditure under a smokescreen of fiscal rectitude.

The talk has been about imposing a discipline on the national account, but the reality underneath is that public expenditure is signalled to rise from next year and in every subsequent year by at least 2.75 per cent. in real terms. We estimate that the figure will be greater than that, once account is taken of all the changed definitions at the margin.

Thus, the question of definitions is important, particularly the frontier between capital and current expenditure. Those of us who have laboured in one of the professions thought that we understood the distinction between capital and revenue expenditure, but I do not think that the Government do. I tabled a simple question to the Chancellor of the Exchequer about whether

"he plans to classify expenditure on hospital repairs as current or capital spending."

Motion and clause, by leave, withdrawn.

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker (Sir Alan Haselhurst):

With this, it will be convenient to discuss the following amendments: No. 45, in clause 147, page 137, line 14, after '£500,000', insert

Motion and clause, by leave, withdrawn.

Notwithstanding the provisions in section 140 of and Schedule 25 to this Act (amending section 31 of the Inheritance Tax Act 1984 introducing a new higher threshold for chattels qualifying for heritage exemption), for those chattels which do not qualify as pre-eminent, the rate of tax will be based on the value at the date when the original heritage exemption was agreed between the owner and the Inland Revenue.-- [Mr. Woodward.]

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker:

With this it will be convenient to discuss the following: New clause 10-- Lower corporation tax for art sales --

The hon. Lady stands before the House and says how reasonable her Department and officials have been, and I make no criticism whatever of her officials, but it is important that she does not let other people take the blame for a matter that is effectively her responsibility.

Motion and clause, by leave, withdrawn.

I beg to move, That the clause be read a Second time.

Mr. Deputy Speaker:

With this, it will be convenient to discuss the following: Amendment No. 53, in clause 47, page 26, line 22, leave out '31st December 2000' and insert '31st March 2001'.

Question put, That the clause be read a Second time:--

The House divided: Ayes 171, Noes 279.

Historical Hansard | Online Hansard |