HC Deb 22 March 1973 vol 853 cc632-3
2. Mr. Frank Allaun

asked the Chancellor of the Exchequer what he estimates to be the average weekly tax burden of both direct and indirect taxation of a family of four; and by how much this would be reduced by reducing Government expenditure by £3,365 million, assuming all taxes to be reduced by equal proportions.

The Chief Secretary to the Treasury (Mr. Patrick Jenkin)

The answers are, very roughly, £12 and £2 respectively.

Mr. Allaun

Does the Minister accept the figures prepared by the House of Commons Research Department, which indicate that the arms bill mentioned in the Question costs the average family of four £4.64 a week, which is an increase of £1.12 a week on the figure of two years ago? Is it not unreasonable that we should reduce the share of the GNP spent on arms to the average figure of the other European NATO countries?

Mr. Jenkin

As my answer indicated, I certainly cannot accept the figures to which the hon. Gentleman has referred as I have given different figures based on figures worked out by my right hon. Friend's Department.

On the second part of the question, it is right to point out that as against total growth of public expenditure averaging 2½ per cent. a year, defence expenditure is growing at 2.4 per cent. whereas such programmes as health and personal social services are growing at 4.8 per cent., education at 5 per cent., and law and order at 6.2 per cent. That is not a bad balance.

Mr. Winterton

Can my hon. Friend say how much of the defence budget is spent on wages of the many thousands of people employed in our defence industries?

Mr. Jenkin

That must be a question for my hon. Friend the Minister of State for Defence, to whose attention I shall draw my hon. Friend's remarks.