§ Mrs. Doris Fisher
asked the Secretary of State for the Environment what expected saving will be made by local authorities from the reduction of selective employment tax on a house costing £5,000, £4,500 and £4,000, respectively.
§ Mr. Amery
It has been estimated that the reduction of selective employment tax will reduce building costs by between 1 and 2 per cent. It is thought that most local authority contracts for house building have tax fluctuation clauses. The actual savings to local authorities in respect of existing contracts will depend on how long the contract has to run.