§ 84. Mr. Danceasked the Chancellor of the Exchequer whether he will seek to relieve independent and church schools from the effect of the Selective Employment Tax.
§ Mr. DiamondNo schools will be relieved from the tax, but the arrangements for offsetting the effect of the tax on local authority finances will cover all schools, including church schools, maintained by local authorities. The question of compensating direct grant schools, including clenom national schools, through the normal grant machinery is being considered
87. Mr. W. T. Williamsasked the Chancellor of the Exchequer what communications he has received from the Economic Development Council for Distribution regarding the effects upon distribution of his payroll tax proposals, and what answer he has made to the Council.
§ Mr. CallaghanI have recently received a letter from the Chairman, to which I have just replied saying that it was necessary for me to raise additional revenue without adding to existing taxation on a narrow sector of productive industry.
§ 89. Sir G. Nabarroasked the Chancellor of the Exchequer whether he is aware of the concern expressed by employers with fewer than 12 employees at any single establishment concerning the effects of Selective Employment Tax, especially private employers with elderly or part-disabled employees and religious, charitable and welfare organisations; and why such establishments are not to be relieved of Selective Employment Tax.
§ Mr. DiamondThe relevance of this criterion is not clear.
§ 90. Sir G. Nabarroasked the Chancellor of the Exchequer in view of the tact that Members of Parliament are regarded as self-employed for purposes of the Selective Employment Tax, whether he will now direct the Inland Revenue to assess Members of Parliament under Schedule D as self-employed, and not as at present under Schedule E; by what authority Members of Parlia- 62W ment are assessed under Schedule E as employed persons; and whether he will seek to bring assessment within Income Tax schedules into conformity with Selective Employment Tax provisions.
§ Mr. DiamondNo. Income Tax is chargeable under Schedule E in respect of offices as well as employments, and Members of Parliament hold an office. The scope of Selective Employment Tax is irrelevant to the Income Tax point.
§ Mr. Astorasked the Chancellor of the Exchequer if he will exempt from liability to the Selective Employment Tax severely disabled persons living at home in respect of nursing and domestic help which they arc obliged to employ for their daily living.
§ Mr. DiamondThis would not be possible.
§ Dame Joan Vickersasked the Chancellor of the Exchequer what estimate he has made of the probable yield of the Selective Employment Tax from the taxation of employment in private nursery schools, playgroups and other registered child-minding establishments.
§ Mr. DiamondAbout £17,500 per annum from the employment of teachers in independent nursery schools in England and Wales. I regret that the other information is not available.
§ Mr. Pavittasked the Chancellor of the Exchequer if a central administrative centre which has been established by the owners of several factories in order to use computers and modern centralised procedures will have to pay the Selective Employment Tax.
§ Mr. DiamondYes, by virtue of being an employer.
§ Mr. Pavittasked the Chancellor of the Exchequer if a number of factories in different parts of the country which have established a centralised distribution system, with separate premises unattached to any one factory, need decentralise and return to individual distribution of their products in order to be relieved of the Selective Employment Tax.
§ Mr. DiamondThe hon. Member should await publication of the Bill.