HC Deb 03 April 1952 vol 498 cc1906-7
67. Mr. Douglas Jay

asked the Chancellor of the Exchequer what percentage of all incomes in the United Kingdom he estimates to be less than £2,000 a year.

Mr. Boyd-Carpenter

With the level of incomes ruling at present there are about 20¼ million people with incomes above the Income Tax exemption limit of £135. Of these about 98.7 per cent. have incomes below £2,000 a year.

Mr. Jay

As the Chancellor told us in the Budget debate that 25 per cent. of the Income Tax relief would go to incomes over £2,000 a year, and as apparently that will only go to 1 per cent. of the population, does not that show how inequitable was this relief? May I also ask the hon. Gentleman whether it is not implied in this figure that 99 per cent. of the benefit of the food subsidies must have gone to people earning under £2,000 a year, and that therefore all the talk of the benefit going to millionaires and Cabinet Ministers is complete nonsense?

Mr. Boyd-Carpenter

The right hon. Gentleman no doubt will be aware that in the case of a man with £2,000 a year who is married and has one child the relief under the present proposals amounts to £59 per annum, as compared with £86 per annum which went to the same people under Sir Stafford Cripp's Budget of 1948 and £98 under the proposals of the right hon. Member for Bishop Auckland (Mr. Dalton) in 1945. If, therefore, in the right hon. Gentleman's view these proposals are inequitable, it would clearly follow that those of his right hon. Friend were grossly inequitable.

Mr. Jay

Is the hon. Gentleman aware that no reduction in the food subsidies but an increase was made in 1948, and therefore his remarks have nothing to do with it?

Mr. Boyd-Carpenter

As the right hon. Gentleman put down the Question, he is no doubt aware that it did not relate to food subsidies but to Income Tax concessions.

Mr. Speaker

This is becoming a debate on a very wide subject.

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