HC Deb 14 March 1939 vol 345 cc212-3
50. Mr. Tinker

asked the Chancellor of the Exchequer whether his attention has been drawn to the report of the Commissioners of Inland Revenue for the year ending 31st March, 1938, which shows the number of people liable to pay Surtax has increased from 91,392 to 95,750, and that there is also an increase in the number of persons applying for Poor Law relief; and what steps will be taken to make the distribution of wealth more in keeping with the needs of the people?

Sir J. Simon

I would remind the hon. Member of figures which I have quoted on previous occasions and which show, first, that the amount being provided by the taxpayer for social services, estimated at £223 millions in the current year, is considerably greater than the amount so provided under previous Governments; and, secondly, that this year the Surtax payers will be paying, in Income Tax, Surtax and Death Duties, more than sufficient to meet the whole cost of those services.

Mr. Tinker

Is the right hon. Gentleman aware that, among the number who get Poor Law relief, there are some 230,000 old age pensioners; and, in view of that fact and of the increase of 4,000 in the number of Surtax payers, will he not consider in his Financial Statement some method that will lessen the disparity between the two, and grant an increase to the old age pensioners?

Mr. Thorne

Does not the right hon. Gentleman think that one way by which wealth could be better distributed would be to give an increase of 10s. a week in old age pensions?

Mr. Wedgwood Benn

May I ask what is the new theory by which money received from Surtax and Income Tax is said to meet the cost of the social services? Do not Income Tax payers pay for the Army and the Navy?

Sir J. Simon

If the right hon. Gentleman will look at the question on the Paper, he will see why the answer was put in that particular form.