11. Mr. Edward M. Taylorasked the Chancellor of the Exchequer what estimate he has made of the revenue from taxation in the calendar year 1969; and what was the comparable figure in 1964.
§ Mr. DiamondThe revenue from taxation in the calendar year 1964 was £7,110 234 million. The comparable figure for 1969 at constant prices is estimated at £10,590 million; and at current prices at £12,551 million. If account is also taken of the rise in average earnings the comparison shows an increase of 28.7 per cent. over the five years, or 5.2 per cent. per annum compound.
Mr. TaylorIs the Chief Secretary aware that the increase in tax rates alone has resulted in the average family in Britain having to pay about £3 10s. a week extra in tax? When do the Government hope to redeem their promise not to impose any general increase in taxation?
§ Mr. DiamondI am aware that the general economic policy followed by my right hon. Friend has resulted in an increase in the standard of living of the very people to whom the hon. Gentleman referred.
§ Mr. WoodburnDo the Government impose taxes to punish people, or to provide services?
§ Mr. DiamondThe Government have to collect taxes partly as a method of demand management and partly, as my right hon. Friend says, to provide the services which on all sides we are continually asked to provide and increase.
§ Mr. Iain MacleodWill the right hon. Gentleman confirm that, leaving aside questions of price changes, and so on, the increase in tax rates between 1964 and 1969 is more than £3,000 million?
§ Mr. DiamondI want to be as helpful as I can. I did not follow the right hon. Gentleman's question. He specifically referred to tax rates alone—rates, as opposed to the amounts on which the rates are imposed?
§ Mr. Iain MacleodYes.
§ Mr. DiamondIn that case, I will have to ask the right hon. Gentleman to be good enough to allow me to obtain the information and give it to him.
§ Mr. RankinIs my right hon. Friend saving up to give us a little reduction in due course?
§ Sir W. Bromley-DavenportHow do these figures, showing this vast increase in taxation, compare with the Socialist Party's promise at the last election that 235 its whole programme could be carried out without any increase in taxation? Laugh that one off!
§ Mr. DiamondThe short answer to the hon. and gallant Gentleman is that no such statement was made at the last General Election—certainly not by myself, nor by any of my colleagues that I am aware of.