HC Deb 22 February 1973 vol 851 cc668-9
11. Mr. Dixon

asked the Chancellor of the Exchequer whether he will consider legislation whereby supplementary benefits paid to strikers should be taxed.

Mr. Patrick Jenkin

I cannot anticipate my right hon. Friend's Budget Statement.

Mr. Dixon

Is my hon. Friend aware that that reply will cause dismay in Cornwall among working people who do not go on strike, not least among many of the traditional supporters of right hon. and hon. Gentlemen opposite?

Mr. Jenkin

I take note of what my hon. Friend said. As he knows, there have always been formidable administrative difficulties about taxing supplementary benefits, whether paid to strikers or not. The Government are engaged in a thoroughgoing and extensive review. I cannot say more.

Mr. Cronin

Would it not at least be an act of decency on the part of the hon. Gentleman if he made it clear that he abhors the idea of the wives and children of strikers being penalised on account of strikes?

Mr. Jenkin

I take note of what the hon. Gentleman has said.

Mr. Ridley

Does my hon. Friend agree that if there were need no tax would be payable? Is it not intolerable that safety devices are subject to tax, whereas subsidies to well-off strikers are not?

Mr. Jenkin

I think that my hon. Friend will recognise that the earlier Question related to the application of VAT as a comprehensive tax on consumer goods. The taxation of strikers' benefits raises different issues, not least administratively.

Mr. Edwin Wainwright

Will the hon. Gentleman reject entirely the suggestion made by his hon. Friend the Member for Truro (Mr. Dixon)? Why does his hon. Friend want to attack the wives and children of strikers? Why do not the Government educate industrialists and management better to understand workers, so that we can prevent strikes taking place?

Mr. Jenkin

It would be foolish of me to reject my hon. Friend's suggestion when the Government have the matter under review.