§ 8. Mr. Meacherasked the Chancellor of the Exchequer how many low-paid workers will be taken out of the income tax bracket as a result of the Budget; and how many he estimates will enter it in the current financial year as a result of upward wage movements.
§ Mr. Maurice MacmillanIt is estimated that there will be about ¾ million more taxpayers in 1971–72 than in 1970–71 and that this figure would have been about 200,000 greater without the Budget changes. It is not possible to say how much the increase is attributable to rising wages.
§ Mr. MeacherIn the light of those figures, will the Minister acknowledge that the Government's policy of refusing to raise the tax threshold across the board in the recent Budget and of de-escalating low wages in the public sector is the main cause of poverty among low-paid workers?
§ Mr. MacmillanThe level of the tax threshold was raised to unprecedented heights by the action of the right hon. Member for Birmingham, Stechford (Mr. Roy Jenkins). I accept that there is much more for us to do. We have embarked on tax reform and simplification.