§ Mr. Patrick JenkinMy right hon. Friend will bring his proposals before the House at the appropriate time.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer by how much he anticipates reducing Government expenditure in the current financial year; in what fields these reductions will take place; when and to what extent he anticipates reducing taxation in the current year; in which fields of taxation these reductions will take place; and when he expects to commence these reductions.
§ Mr. Maurice MacmillanOn Government spending: we are reviewing the existing plans for public expenditure and my right hon. Friend will make a statement to the House after the Recess. On taxation: my right hon. Friend will announce his detailed proposals at the appropriate time.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer (1) whether he will make a statement on his proposals concerning taxation in general and selective employment tax in particular; and when he will implement these proposals;
(2) in view of the large surplus on the balance of payments account and the fact that the economy is buoyant, what proposals he has for reducing direct and indirect taxation.
§ Mr. Maurice MacmillanI have nothing to add to the answer I gave earlier today to my hon. Friend the Member for Worcestershire, South (Sir G. Nabarro).
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will give for the latest and most convenient stated date the estimated cost to the revenue of the abolition of selective employment tax; what is his estimate of the revenue obtainable from a value-added tax to off-set the loss from the ending of selective 16W employment tax; and what is the Government's policy in this matter.
§ Mr. Patrick JenkinThe Budget Estimate of the net yield of S.E.T. in the current financial year is £588 million. The revenue obtainable from a value added tax would depend on the rates and coverage. My right hon. Friend will announce the Government's taxation plans at the appropriate time.
§ Mr. Maclennanasked the Chancellor of the Exchequer if he will take steps to evaluate the economic effects of selective employment tax.
§ Mr. Patrick JenkinIn view of my right hon. Friend's pledge to abolish S.E.T. I do not think it necessary to initiate any further studies of the tax.