§ 50. Mr. Woodburnasked the Chancellor of the Exchequer whether, in view of the machinery now existing for the collection of tax contributions by pay-as-you-earn, he is considering the possibility of abolishing the poll-tax method of stamp contributions for the health and unemployment insurance services and avoid triplicate deductions from weekly and other wages?
§ The Chancellor of the Exchequer (Sir John Anderson)If I understand my hon. Friend's proposal aright, it is that provision for ill-health and unemployment should no longer by made by contributory insurance schemes, but that payments in respect of such contingencies should be made at the expense of the general taxpayer. The Beveridge plan is based on the view that "benefit in return for contributions, rather than free allowances from the State, is what the people of Britain desire." The Government share this view, and have accepted the recommendation that provision for such contingencies should be made by continuing and extending the system of contributory insurance.
§ Mr. WoodburnSince only about a fifth of the insurance services are in the form of contributions and the rest are paid by the same people in taxation, and in the case of the Beveridge scheme only half is allowed for in contributions and the other half would have to be raised from the same people by taxation, may I ask the Chancellor whether some method of co-ordinating all this taxation could not be adopted to save duplicating and triplicating the collection of money from the population?
§ Sir J. AndersonWe follow the well-tried and sound practice of keeping taxation and expenditure separate.