Selective Employment Tax

HC Deb 19 July 1966 vol 732 cc368-9

30. Mrs. Knight

asked the Minister of Housing and Local Government what estimate he has made of the sum that will be payable by the local authorities in Selective Employment Tax in the first six months following the date when this tax becomes payable.

Mr. Mellish

For local authorities in England, about £42 million.

Mrs. Knight

Would the Minister not agree that this is a very large amount of money? Will he please assure this House that no important local authority schemes are going to be held up because money that had been made available for them will have to be used to pay the S.E.T.?

Mr. Mellish

Yes, I can give that assurance. The refunds will be made in the month following.

31. Mrs. Knight

asked the Minister of Housing and Local Government what estimate he has made of the loan charges to local authorites to meet the cost of Selective Employment Tax where this cannot be done out of their revenue.

Mr. Mellish

There are many unknown factors, but for England the figure is likely to be between £250,000 and £500,000.

Mrs. Knight

Will the Minister not agree that because of the machinery of the tax the Government are likely to fall into arrears in reimbursing the local authorities and, bearing in mind the present interest rates, will not local authorities be forced to put up their rates? How does he equate this with the Labour Party's election promise to ease the burden of rates?

Mr. Hamling

They have done it.

Mr. Mellish

The hon. Lady will be aware that an attempt has been made by this Government to ensure that relief is given on rates to those who are in the greatest need.

Mr. Chichester-Clark

Bearing in mind the Chancellor's assurances about fixed price contracts, will he confirm or deny that Government recommendations have been made for public and local authorities to increase the price of contracts by only 1 per cent. when the actual cost of S.E.T. may be 2½ per cent. to 4½ per cent., due to Government action?

Mr. Mellish

The hon. Gentleman will know that such a Question cannot be answered in this Question, which deals purely with loan charges.