§ Mr. Lubbock
asked the Minister of Housing and Local Government if he will estimate the average additional cost of a three-bedroom semi-detached local authority house arising from the Selective Employment Tax.221W
§ Mr. Mellish
My right hon. Friend estimates that the Selective Employment Tax amounts to about 2 per cent. on the cost of the average house but this should be partly offset by the lifting of the import surcharge and the extension of the new investment grants to the construction industry. The effect on prices will depend on how much of the extra cost is passed on, but builders should be able to absorb at least part.