HC Deb 22 June 1965 vol 714 c1443
6. Mr. Sheldon

asked the Chancellor of the Exchequer if he will investigate the use of National Insurance contributions as a means of regulating the economy both regionally and nationally.

Mr. Callaghan

I will bear my hon. Friend's suggestion in mind, although he will recognise the difficulty of making contributions vary, especially on a regional basis.

Mr. Sheldon

Would my right hon. Friend not agree that one of the main difficulties that he has in controlling the economy is the time lag between the decisions which he takes and the effects produced? Would he not also agree that this investigation would be well worth while and will he say what steps are being taken to meet this point and how he intends to reduce the time lag between the decision and the effect?

Mr. Callaghan

That would not be wholly true of some of the measures of indirect taxation. This is not a question that I rule out. There is a review of the social services coming up; and although this facet of it would not be a major part of the review, I think it worth bearing in mind. But I would say to my hon. Friend that there are practical formidable difficulties in the matter.

Mr. Ioan Evans

Has my right hon. Friend considered the proposal that the National Insurance contribution should be varied according to income? Is he aware that the contribution bears heavily on the lower income group?

Mr. Callaghan

Yes, Sir, but I think that that is another Question.