§ I turn now to direct taxation. My predecessor made a beginning with the reform of direct taxation and I hope to continue the work, more particularly in the field of personal taxation. In that field, my inclination is towards fewer loopholes and somewhat lower rates. The high rates breed the relentless search for loopholes which occupies a good deal of the time of our more skilled accountants and our more ingenious rich. I am proposing to close up some of the loopholes this year, but major reform and simplification cannot be carried out at the stroke of a pen. In the first place, simplification often runs counter to the demands of equity, and it requires a great deal of careful work to balance the two. Secondly, as I said earlier, major alterations in the tax code need long preparation and mean a great deal of additional work for the already over-stretched Department of Inland Revenue. Regretfully, therefore, I am not able this year to attempt a major reform in Estate Duty. In the meantime, however, I have three proposals to make in that field.