§ 48. Mr. Kirkwood
asked the Chancellor of the Exchequer whether he has now reconsidered the question of the taxation of wages paid for overtime; and whether he has any statement to make in view of the serious effect this taxation is having on our war effort?
§ Sir K. Wood
There is no special taxation of overtime earnings. In so far as the recipients of such earnings are like other members of the community, liable to the additional taxation imposed by the Finance Act, 1941, they will I am sure appreciate that it is not possible at the present time to reduce that burden. A substantial part of the additional tax—in many cases the whole tax—will, as my hon. Friend is aware, be made available as a credit to the taxpayer after the war.
§ Mr. Kirk wood
Is the Chancellor of the Exchequer aware of the fact that this is causing serious trouble all over Britain in the shipbuilding and engineering industries, and that one of the biggest employers on the Clyde came down here to see the Minister of Labour with a view to this difficulty being sorted out, in order to get the men to work overtime and finish 1244 one of the most important jobs that we have yet done?
§ Sir K. Wood
No, Sir, I could not accept that statement. I do not think it is unreasonable that taxation should be paid upon these earnings.