§ 51. Mir. Shinwell
asked the Chancellor of the Exchequer what estimate he has 66W made of the effect of selective employment tax on the redeployment of labour and of its effect on the revenue in future years, respectively.
§ Mr. Diamond
Over the six or seven years before this tax, the tendency had been for employment in manufacturing to move only slightly upwards, whereas employment in the tax bearing industries increased steadily at a much faster rate. This tax seems likely to have had a powerful effect in reversing the previous trend. I cannot give any precise forecast of the effect of changes in the pattern of employment on the revenue of the tax in future years.