§ 63. Mr. Hector Hughesasked the Chancellor of the Exchequer on what criterion he acts in selecting the places in Scotland to which Selective Employment Tax is to be applied; why it is to be imposed on the city of Aberdeen; and, in view of the damage which will be caused to trade and industry and employment in that city, if he will take steps to exempt North-East Scotland from payment of the tax.
TaverneMr. If my hon. and learned Friend is referring to the proposals for52W relieving the hotel trade in certain rural parts of development areas from effective liability to Selective Employment Tax, the answer is that my right hon. Friend the Chancellor of the Exchequer explained the criteria for selection in his speech on the Second Reading of the Finance Bill. On the basis of these criteria neither the City of Aberdeen nor North East Scotland as a whole would appear to qualify for relief. These matters are, of course, being considered by the Standing Committee on the Finance Bill.—[Vol. 763, c. 254–5.]
§ Viscount Lambtonasked the President of the Board of Trade whether he will reconsider his decision not to exempt market towns such as Berwick-upon-Tweed situated in development areas, from paying Selective Employment Tax.
§ Mr. DiamondI have been asked to reply.
The Selective Employment Tax is collected uniformly throughout Great Britain. I am proposing to refund the tax in respect of employment in hotels in certain parts of the development areas, which include Berwick-upon-Tweed.