HC Deb 23 January 1967 vol 739 cc191-2W
Mr. Leadbitter

asked the Chancellor of the Exchequer what evidence he has that Selective Employment Tax has been an effective factor in encouraging the redeployment of manpower in directions calculated to be economically essential to the country.

Mr. Callaghan

It is too early to make a useful assessment of the effects of the tax.

Mr. Leadbitter

asked the Chancellor of the Exchequer what action he is prepared to take to relieve the distributive trades of the excesses and anomalies of the Selective Employment Tax and reduce the subsidy effects of the tax to manufacturers where labour is loaded unnecessarily or efficiency is not in accord with the aims of the tax.

Mr. Callaghan

I do not accept the implications of the question. Apart from raising a substantial sum of revenue the long-term economic objective of the tax is to reduce the demand for labour by service industries, including distribution, and to make more available for manufacturing. This is desirable in the interests of the economy as a whole.