HC Deb 23 January 1973 vol 849 cc200-1
6. Mr. Meacher

asked the Chancellor of the Exchequer if he will propose the reintroduction of Schedule A tax.

Mr. Patrick Jenkin

No, Sir.

Mr. Meacher

Is the hon. Gentleman aware that because there is no Schedule A tax and no capital gains tax on excessive rises in house prices, the average executive earning over £5,000 a year has gained about £14,000 in untaxed housing capital gains under the present Government while during exactly the same period the average tenant has been forced to pay an average of 30p a week more in rents? Is this not a grotesque inequality, as offensive to the Chancellor as the land speculation of which he purports to disapprove? When will he stop this and land speculation?

Mr. Jenkin

I cannot see how it would conceivably help the tenant to hit at the position of the owner-occupier. To re-impose the old Schedule A—there is a new Schedule A on rents—would hit at the expansion of owner-occupation, something which has been supported on both sides of the House, would impose new burdens on existing owner-occupiers, would impose a much greater burden on those who have paid off their mortgages, many of whom will be elderly retired people, and would require a large number of extra Revenue officials. It would be interesting to know whether that is the policy of the Labour Party.

Mr. Jay

If the hon. Gentleman will not do as my hon. Friend asks, will he at least set a ceiling for tax relief on mortgage interest since this is becoming a scandal and is one of the main causes of the present high price of houses?

Mr. Jenkin

The position of tax relief on mortgage interest is exactly as it was left by our predecessors in June 1960.

Mr. David Stoddart

If the Minister will not agree to either of these proposals will he try to bring some fairness into the system as between owner-occupiers and rent-payers, who do not draw a subsidy from any source, by allowing rent-payers to set a proportion of their rent against tax?

Mr. Jenkin

That is a wholly different question.