§ 20. Mr. Goodhartasked the Chancellor of the Exchequer what estimate he has made of the cost of removing the tax on the pensions of war widows.
§ Mr. Patrick JenkinThe information on which to base an estimate is not available.
§ Mr. GoodhartWill my hon. Friend remember that Germany and Italy—and this will apply eventually to all our partners in the European Community—do not impose any tax on the pensions of war widows? Will he also remember that in the forthcoming Budget he has the opportunity not only to help these widows but also to strike a blow for European tax harmonisation?
§ Mr. JenkinIt is with great hesitation that I correct my hon. Friend, but Denmark is among several countries, which include the Netherlands and Italy, which impose tax on war widows' pensions. We have always taken the view—because it would give nothing to those below the tax threshold and be of maximum benefit to those with substantial other income—that to exempt these pensions from tax is not the right way to help war widows. Instead we aim to increase the level of war widows' pensions whenever that is possible.
§ Mr. AshleyIs the Minister aware that, while it is difficult to disentangle the problems of war widows from those of widows generally and the problems of widows generally from those of other single-parent families, the Government appear to be incredibly indifferent to the plight of these disadvantaged families? When will some initiative be taken on behalf of these people on the same lines as that which has been taken for surtax payers?
§ Mr. JenkinI must contradict the hon. Gentleman. I just do not believe that his accusation bears any relation to reality. On the contrary the Government have done more to give specific help to those families which face specific problems than did their predecessors. We can stand proudly on our record on this.