HC Deb 24 November 1970 vol 807 cc206-8
3. Sir G. Nabarro

asked the Chancellor of the Exchequer whether he will now make a statement of his policy concerning total extinguishment of selective employment tax and purchase tax on 5th April, 1971, and their substitution by value added tax from 6th April, 1971.

30. Mr. Sheldon

asked the Chancellor of the Exchequer if he will make a statement on the ending of selective employment tax and purchase tax and their replacement by a value added tax.

The Chancellor of the Exchequer (Mr. Anthony Barber)

I have nothing to add to what my predecessor said in reply to questions from the hon. Members for West Ham, North (Mr. Arthur Lewis) and South Ayrshire (Mr. Sillars) on 7th July.—[Vol. 803, c. 469.]

Sir G. Nabarro

Will my right hon. Friend bear in mind that the entire Conservative Party pledged itself to the abolition of the selective employment tax[Interruption.]—at the recent General Election—[Interruption.]—and as the nation is now pregnant with fiscal expectations, will my right hon. Friend take early steps honourably to deliver?

Mr. Barber

Quite apart from the fact that we believe, on merits, that the selective employment tax is a tax which must go, it is also because we gave the very firm commitment, to which my hon. Friend refers, that we are determined that the selective employment tax shall be abolished.

Hon. Members

When?

Mr. Sheldon

Will the Chancellor of the Exchequer give a categorical assurance that a value-added tax will not be imposed on food?

Mr. Barber

We made our position quite clear during the election, and stated clearly in our election manifesto, that we would consider a value added tax on its merits in the course of our review of indirect taxation. That is the pledge we gave, and we shall keep that pledge.

Mr. Barnett

In view of the right hon. Gentleman's commitment to act directly on costs, will he at least assure the House that he will not increase these two in- direct taxes or whatever replacement he has in mind?

Mr. Barber

As far as I am aware, no previous Chancellor of the Exchequer in the 19 or 20 years I have been in the House has ever answered a question like that by giving a commitment, and I do not propose to start.