§ 12. Mr. Ashtonasked the Chancellor of the Exchequer what is his estimate of 182 the effect on house prices on the basis that selective employment tax is abolished and a value added tax of 10 per cent. introduced in its place.
§ Mr. DiamondIf S.E.T. were abolished and a V.A.T. at 10 per cent. were applied to sales of new houses the cost of new houses might be about 6 per cent. or 7 per cent. higher than now.
§ Mr. AshtonDoes my right hon. Friend realise that this means that the Tories, who are supposed to be the friends of the owner-occupiers, propose to increase the average price of a house by £300?
§ Mr. DiamondI can only say to my hon. Friend that what the Tories propose to do when they win the General Election is a matter of remote academic interest.
§ Mr. HigginsWill the right hon. Gentleman accept that my right hon. Friend made it clear in his speech at Brighton that it was not our intention, if we were to introduce such a tax, to extend it to housing?
§ Mr. DiamondThe only clear message I got was that the Tories would exclude everything from taxation and increase revenue.