HC Deb 31 January 1967 vol 740 cc231-2
17. Mr. G. Campbell

asked the Chancellor of the Exchequer when he will change his policy which discriminates against service industries in taxation matters, in view of the adverse effects of this policy on large areas of Scotland and certain regions of England and Wales.

Mr. Diamond

The concentration of tax incentives and other benefits on manufac- turing industry will encourage the growth of the economy as a whole, including Scotland and the development areas in England and Wales.

Mr. Campbell

Is it the Chancellor's intention to reduce the number of jobs in service industries in the north of Scotland?

Mr. Diamond

It is my right hon. Friend's intention to encourage the strength of the economy so as to benefit all people engaged in all parts of the country.

Mr. Nott

Is the Chief Secretary aware that when he said that the Government's regional policy was effective, he could not have been applying himself to certain regional development areas in the South-West, where unemployment is now higher than ever before? Does this really mean that the Government's regional policy is effective?

Mr. Diamond

I was referring, for example, to the fact that with regard to investment grants, the differential in favour of the development areas is very substantial indeed, 45 as again 25 per cent.