HC Deb 20 January 1976 vol 903 cc1113-4
3. Mr. David Mitchell

asked the Secretary of State for Employment by what percentage the training board exemption limits for small businesses have been raised, on average in the last 12 months in those cases where exemption is defined by reference to the annual wages etc. paid.

The Under-Secretary of State for Employment (Mr. Harold Walker)

I am informed by the Manpower Services Commission that comparison of the levy orders of industrial training boards that have operated an exemption scheme related to the emoluments of small firms for the past two years shows that the limit was raised by an average of l7.3 per cent. between the 1974 levy orders and the 1975 levy orders.

Mr. Mitchell

I think the Minister will agree that the figure he has given is considerably lower than the average increase in earnings over that period. That must mean that many small businesses have been driven by inflation into paying the levy on account of inflation and not on account of being able to benefit from the work of the training boards. In fixing future levy rates, will the hon. Gentleman ensure that exemptions for small businesses are adequate to take account of inflation?

Mr. Walker

I understand that the exemption policy of the individual industrial training boards is aimed at keeping the number of exempted firms the same, so that the scope of the board is stabilised. The level of earnings is only one factor that has to be taken into account in setting the exemption level to achieve that objective.