§ Mr. SheermanTo ask the Secretary of State for Education and Employment what steps he is taking to reduce the size of the black economy. [32094]
§ Mr. ForthI have been asked to reply.
Employment in the black economy is minimised by reducing regulatory and administrative burdens on employers; keeping down tax and other non-wage labour costs; and by effective action against fraud. The regulatory burden on employers in the UK is lower than in the other EU countries, and non-wage cost as a proportion of total hourly labour costs are among the lowest in the OECD. The Employment Service aims to protect taxpayers' money from abuse by conducting fraud drives in areas of the economy where experience has shown fraud to be prevalent.