17. Mr. John Mark Taylorasked the Chancellor of the Exchequer what recent representations he has received advocating taxation reliefs for employers who recruit new and additional personnel on to their payrolls.
§ Mr. Peter ReesWe have received one letter about this. The costs of recruiting and employing staff are already fully allowable for tax.
Mr. TaylorWill my right hon. and learned Friend take note of the fact that in our taxation system it has been historically an orthodoxy to give tax relief to people who invest in new plant? Why could we not give some serious thought to tax relief for those who invest in new labour?
§ Mr. ReesIf my hon. Friend will reflect on the reforms in the Budget last year he will see that my right hon. Friend the Chancellor redressed the balance between capital-intensive industries and labour-intensive industries.