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Selective Employment Tax

Volume 728: debated on Thursday 12 May 1966

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asked the Minister of Housing and Local Government if he will seek to increase the subsidies paid to the local authorities so as to cover the additional cost imposed by the selective employment tax.

I assume that the hon. Member has housing subsidies in mind. The proposed new basic subsidy will meet the difference between loan charges incurred on the capital cost of providing housing at the current borrowing rate and the loan charges which would have been incurred if the borrowing rate had been 4 per cent. and will then make a proportionate contribution to any additional cost of building.