§ 9. Mr. Newtonasked the Chancellor of the Exchequer what representations he has received since his Budget statement from widows and widows' organisations.
§ Mr. Robert SheldonMy right hon. Friend has received a number of letters from widows, but he has no record of representations received since the Budget from widows' organisations.
§ Mr. NewtonIs the Financial Secretary aware that there is great disappointment among hon. Members on both sides of the House that the Budget seemed to make no response to the problem of the discouraging effect of the tax system on working widows and the injustice done to widows and single women between the ages of 60 and 65? Can we have an assurance that he will be prepared to give sympathetic consideration to the further representations which will certainly be made during the course of our consideration of the Finance Bill?
§ Mr. SheldonThe hon. Gentleman will know that I am always happy to receive representations from the widows' organisations and to profit from the information they give me from their constituent 1473 organisations throughout the country. Widows, like other members of society generally, have benefited from the tax reliefs given by my right hon. Friend in his Budget. When the hon. Gentleman asks for a special relief for widows he must be aware that by far the majority of them pay no income tax. If money is spent in this direction, it will not go to those in the greatest need, and the majority will not benefit at all. Bearing these points in mind, I look forward to our debates in due course on the Finance Bill.
§ Mr. MaddenDoes my right hon. Friend agree that middle and upper income groups have benefited far more from the Budget than the poor, including widows, single-parent families, and low-paid workers with families? Would he agree also that these latter groups would benefit more from an increase in personal allowances than from a reduction in the basic standard rate of income tax? Can he indicate whether the child benefit is to be reviewed regularly in the same way as other long-term and short-term benefits?
§ Mr. SheldonMy hon. Friend says that most relief has been given to those at higher income levels. But he is, of course, aware of the changes that have been taking place over the past few years as a result of the higher tax rates that have been introduced. He may recall the figures I have quoted of the ratio between the net earnings of a person on average male industrial earnings and those of a man at, say, £25,000 a year. That ratio, after taking allowances into account has shrunk to less than four to one. I believe that this is the basic reason why my right hon. Friend the Chancellor of the Exchequer has been called the most egalitarian Chancellor this country has ever known, something of which we may be proud.
§ Sir John HallDoes not the Financial Secretary agree that the real problem affecting widows lies in the difference between the retiring ages of men and women? If women are to be required to retire at 60 and not 65, should not that be taken into account? Will he consider sympathetically and with action any representations that may be made in that regard during the Committee stage of the Finance Bill?
§ Mr. SheldonThe difference between the retirement ages of men and women is a matter that is being raised more often and representations are being received in greater volume. There are problems, such as the interaction between retirement age and the age at which increased tax allowances become available, and these and other complications will undoubtedly have to be dealt with in due course.