§ 53. Mr. Fernyhoughasked the Chancellor of the Exchequer if, before seeking to abolish selective employment tax, he will initiate discussions with all the trades and services who have been affected by it with a view to obtaining from them a guarantee that when it is abolished they will reduce their prices by as much as they put them up as a consequence of the cost of selective employment tax to them.
§ Mr. HigginsI would refer the hon. Member to the reply given to the hon. Member for Newark (Mr. Bishop) on 17th July.—[Vol. 803, c. 273.]
§ 56. Mr. Ashtonasked the Chancellor of the Exchequer what is his estimate of the effect on a new house costing £4,500 of abolishing selective employment tax and introducing a value-added tax of 10 per cent. in its place.
§ Mr. HigginsAny estimate would be crucially dependent on assumptions about a large number of variables and it is not feasible to give a meaningful answer on the basis of the hon. Member's question.
§ 57. Mr. Hiltonasked the Chancellor of the Exchequer if he will take steps with a view to the early removal of selective employment tax from the building industry.
§ Mr. HigginsWe have undertaken to abolish the selective employment tax. Proposals will be placed before the House in due course.