HC Deb 20 December 1966 vol 738 cc247-8W
60. Mr. Miscampbell

asked the Chancellor of the Exchequer if he will now initiate a review of the operation of the Selective Employment Tax in preparation for the next Finance Bill, in view of the growing evidence of its adverse effect upon the hotel industry.

Mr. Diamond

We are keeping the Selective Employment Tax generally under review.

70. Mr. Dance

asked the Chancellor of the Exchequer whether he will take steps to ensure that the cost of the Selective Employment Tax is not offset by increased charges on hotel, restaurant and bar bills to the public.

Mr. Diamond

As the White Paper on the Prices and Incomes Standstill indicated, all enterprises are expected to make every effort to absorb rises in costs, but rises caused by increased taxation which cannot be fully offset are permitted.

Mr. Urwin

asked the Chancellor of the Exchequer whether, when reviewing the application of Selective Employment Tax, he will seek to minimise its detrimental effect upon economic growth in the development areas.

Mr. Callaghan

I do not accept that the tax has had the effect described. My hon. Friend will be aware that these matters are under review, and that the Government is giving considerable assistance to strengthen the development areas.

Mr. Urwin

asked the Chancellor of the Exchequer what was the gross estimated amount of revenue to be derived from the application of Selective Employment Tax to the construction industry in the first complete year of operation; and how the sum compares with the gross amount collected to the last available date for computation.

Mr. Diamond

The annual revenue from the construction industry is broadly estimated to be in the region of £80 million. It is not possible to provide actual collection figures for particular industries.

Mr. Hector Hughes

asked the Chancellor of the Exchequer if he will now make a detailed statement on the working of the Selective Employment Tax, indicating its effect on industrial employment and unemployment, respectively.

Mr. Callaghan

As I have said, we are keeping a careful watch on the operation of the Selective Employment Tax. It is too early to make a useful assessment of its effects.