§ Q1. Sir B. Rhys Williamsasked the Prime Minister if he will take steps to amalgamate the sections of the Inland Revenue Department dealing with direct taxation of individuals with the sections of the Department of Health and Social Security dealing with direct payment of benefits to individuals.
§ The Prime Minister (Mr. Edward Heath)I have no current plans for such changes.
§ Sir B. Rhys WilliamsWill my right hon. Friend ensure that there is complete harmonisation of the plans of these Departments in investment in computers and the free exchange of information between them about individual persons' records?
§ The Prime MinisterI shall have to consider carefully the implications of that Question. We all recognise the care and attention which my hon. Friend has given to this problem of reducing the administrative burden of dealing with different aspects of financial policy affecting the individual. But I am sure that he recognises, as we do, the problems involved.
§ Mr. GrimondWill the Prime Minister look at the scheme devised by his hon. Friend's mother in the heyday of the family when they were Liberals? It is a most ingenious scheme for what amounts to a reverse income tax and setting off social payments against direct tax?
§ The Prime MinisterI recall doing so at the time. However, that scheme has been superseded by a more refined one now that my hon. Friend is a Conservative.
§ Mr. Peter ArcherSince the effect of the proposals announced by the Chancellor of the Exchequer last week will be to subject more people to many more means tests, would a form of negative income tax be a way of alleviating both administrative trouble and human hardship?
§ The Prime MinisterWe have been examining the question of a negative income tax, and preliminary studies have been completed. We are now considering the case for further studies.