Selective Employment Tax

HC Deb 25 October 1966 vol 734 cc133-4W

Mr. Scott

asked the Chancellor of the Exchequer whether he will give an undertaking that in no circumstances refunds due under the Selective Employment Payments Act will be postponed, reduced or stopped as a result of the economic situation.

Mr. Diamond

There can be no question of reducing or stopping statutory payments to qualifying employers who make valid claims.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he is aware that the primary objective of the Selective Employment Tax in freeing unwanted labour power is being evaded by firms putting the cost of this tax on to other products and services; and, as this is contrary to the Government's policy and is increasing the cost of living, if he will now introduce amending legislation.

Mr. Callaghan

The Government expects firms to absorb part or whole of the tax by increased efficiency and economies but where this is not possible then it will be necessary for them to pass on some part of the increased cost.