HC Deb 15 October 1968 vol 770 c180
7. Mr. Sheldon

asked the Chancellor of the Exchequer what studies he is carrying out into the effects of taxation upon incentives.

Mr. Diamond

I am carefully considering the main studies which have been carried out in this field in recent years.

Mr. Sheldon

But is my right hon. Friend aware that in his Budget statement the Chancellor of the Exchequer made a dramatic change from direct to indirect taxation and justified it on the ground of incentives? Is it not worth while to spend a little time—as is done by so many other organisations—measuring the effect of incentives in this connection?

Mr. Diamond

As my hon. Friend knows, my right hon. Friend has studied the matter with great care. There have been many publications about it, and a great deal of time has been spent on this important topic, but it is not yet evident that there is a clear conclusion or that further study would produce a clear conclusion. I therefore hope that my hon. Friend feels that what I am doing is sensible—that is, going over the ground very carefully once more.