HC Deb 17 February 1970 vol 796 cc193-4
17. Mr. Grant

asked the Chancellor of the Exchequer what is his estimate of the cost to the revenue of abolishing the distinction for tax purposes between earned and unearned income.

Mr. William Rodgers

About £200 million for a full year.

Mr. Grant

Does not the hon. Gentleman agree that the term "unearned income" is a wholly emotive one and that the artificial distinction for tax purposes is working very much against the increased savings and investment which the Chancellor so badly wants?

Mr. Rodgers

I do not think that it is an emotive term. It is a real one. It describes effectively the differences between the forms of income. I do not think that it has the consequences which the hon. Gentleman suggests.

Mr. Simon Mahon

When my right hon Friend considers the pressures which are brought to bear upon him, will he also consider the aged, the widows and the sick, many of whom have never had a penny of unearned income in their lives?

Mr. Rodgers

I am sure that that, amongst many other considerations, will be in my right hon. Friend's mind.