HC Deb 24 May 1966 vol 729 cc51-2W
41. Mr. Geoffrey Lloyd

asked the Minister of Housing and Local Government what estimate he has made of the effect on the housing programme of the application of the proposed Selective Employment Tax to the construction industry.

Mr. Mellish

We are keeping a very careful watch but it is too early to judge.

53. Mr. George Jeger

asked the Minister of Housing and Local Government whether he is aware that housing contractors are asking local authorities for an increase in the tender figure for house building arising from the Budget proposals for a pay-roll tax; and what advice he is giving to local councils in this matter.

Mr. Crossman

Yes. Where local authorities inquire, the Department's officers are advising them that where tenders were received before Budget Day but have not been let, and contractors are unwilling to accept the contract at the price offered, authorities may negotiate with the contractor whose tender they would otherwise have accepted, taking account both of the pay-roll tax and of other Budget measures which should lead to a reduction in building costs.