Selective Employment Tax

HC Deb 13 May 1966 vol 728 cc158-60W

Sir L. Heald

asked the Secretary of State for Education and Science what he estimates to be the annual cost to universities, schools and colleges, respectively, of the Selective Employment Tax as proposed in Command Paper No. 2986.

Mr. Crosland

As indicated in paragraph 22 of Command Paper No. 2986, the universities will receive a refund of the tax through the University Grants Committee. Arrangements to be made to offset the effect of the tax on the finances of local authorities will cover all educational establishments that they maintain. The question of compensating grant-aided educational establishments—for all or part of the cost—through the normal grant machinery is being considered. As to the effect of the tax on independent educational establishments, I would refer the hon. Member to the Answer given by my right hon. Friend the Chief Secretary to the Treasury on 6th May.