HC Deb 18 April 1967 vol 745 cc275-7
8. Mr. Gwilym Roberts

asked the Chancellor of the Exchequer what proportion of the national income in 1966 went to rent, interest and profit; what proportion went to wages and salaries; what were the corresponding figures for 1960 and 1963; and what steps he is taking to orientate national income to wage and salary earners.

Mr. Callaghan

As the Answer contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT. As regards the last part of the Question, the Government's economic policy is designed to ensure fairness in the distribution of incomes between the various groups.

Mr. Roberts

Would not my right hon. Friend agree, however, that it is time to speed up redistribution and that we should try to replace the crude and outdated instrument of Income Tax by a system of direct taxation, coupled with higher Surtax and higher death duties—[Interruption.]—allied to considerably increased social welfare benefits, not forgetting the claims in this direction of the lowly paid workers?

Mr. Speaker

Order. We must not have Budget speeches at Question time.

Mr. Callaghan

My hon. Friend has raised a number of interesting topics, but I doubt whether I could encompass a reply within terms which would meet with your approbation, Mr. Speaker.

Sir S. McAdden

Without seeking to introduce a sense of nostalgia to the right hon. Member for Easington (Mr. Shinwell), is it not a fact that rent, interest and profits have always been decried by hon. Gentlemen opposite? While the Government are doing everything possible to abolish profits, when will they do something about rent and interest?

Mr. Shinwell

If the hon. Gentleman—

Mr. Callaghan

I think that the supplementary was directed at me. The proportion of the total gross domestic income devoted to profits and incomes, including rent, declined from 33.4 per cent. in 1960 to 30.5 per cent. in 1966.

Mr. Shinwell

Not enough.

Mr. Callaghan

Income from employment increased from 66–6 per cent. to 69.5 per cent.

Mr. Biffen

Would the right hon. Gentleman say whether it is the objective of the Government's prices and incomes policy, in which the C.B.I. has been asked voluntarily to co-operate, that the share taken by wages and salaries shall go up while that taken by dividends shall fall?

Mr. Callaghan

That is not related to the Question I am answering and should be addressed to the First Secretary. [HON. MEMBERS: "Answer."] The answer, from the point of view of a mixed economy, is that which I gave clearly in my Budget speech, and I do not think that I could improve on the language I used there.

Following are the figures:

PERCENTAGE OF TOTAL GROSS DOMESTIC INCOMES
Profit incomes, including rent Income from employment
1960 33.4 66.6
1963 32.0 68.0
1966 30.5 69.5

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