§ Mr. Skeetasked the Chancellor of the Exchequer what plans he has to prevent the upward movement of prices following the introduction of value-added tax through firms taking the opportunity to improve their profit margin.
§ Mr. HigginsI am not convinced that such plans are necessary. In any case the effect on prices will depend on the rates, scope and coverage of the value-added tax which have not yet been decided; and the abolition of purchase tax and S.E.T.