§ Mr. Skinnerasked the Chancellor of the Exchequer what effect an anti-inflation tax would have, in his estimation, on (a) the balance of payments, (b) employment in the regions, and (c) the general level of employment.
§ Mr. DellBy increasing United Kingdom competitiveness, a reduction in the present rate of domestic inflation would have beneficial effects on the balances of payments and employment. It is not clear that an anti-inflation tax could be effective for this purpose.
§ Mr. Skinnerasked the Chancellor of the Exchequer what is his policy towards an anti-inflation tax.
§ Mr. DellThe control of inflation is a vital objective of Government policy, and to this end strict controls have been imposed on prices and profits. Moreover we have achieved a clear understanding with the trade union movement on the scope for improvements in living standards in the present economic situation. The Government do not believe that an anti-inflation tax would be an effective substitute for these measures.
§ Mr. Skinnerasked the Chancellor of the Exchequer if he will consider proposing penal rates of tax on those who gain from inflation by increased value of assets held.
§ Dr. John GilbertI will write to my hon. Friend.