HC Deb 24 February 1977 vol 926 cc1624-5
12. Mr. Lawrence

asked the Chancellor of the Exchequer how many people living in the travel to work area of the 12 largest conurbations who did not pay income tax in 1973 are now paying tax.

22. Mr. Steen

asked the Chancellor of the Exchequer how many people living in the inner areas of the 12 largest conurbations who did not pay income tax in 1973 are now paying tax.

Mr. Denzil Davies

I regret that no information is available to answer these Questions.

Mr. Lawrence

Is the hon. Gentleman not aware that over 1 million people living mainly in city areas and in the areas of large towns now have him and his Government to thank for paying income tax for the first time? That is not because their standard of living has risen; it is due to the appalling rise in the rate of inflation, because a doctrinaire Socialist Government have been squandering their money.

Mr. Davies

I do not know from where the hon. Gentleman gets his figures, but it has been accepted that because of inflation many people have been brought within the tax net. That is a fact. Inflation has been affected by many causes, not least the quadrupling of the price of oil that occurred a few years ago.

Mr. Steen

Is the hon. Gentleman aware of the degree of resentment felt by widows and others in the low-income bracket in areas such as Liverpool and other large cities? Is he aware how perplexed they are when they go into the tax net for the first time? Has he any idea of the cost of bureaucracy in administering all these tax benefits?

Mr. Davies

I must tell the hon. Gentleman that it has nothing to do with bureaucracy. I accept that widows feel aggrieved, because very often they go into the tax net at low levels of income. We all accept that. Many people are affected, including single persons other than widows. In the main, this is a difficulty created by inflation.

Mr. Woodall

Would my hon. Friend ask his right hon. Friend whether he will now consider making some tax concessions for those who live in travel-to-work areas, especially rural areas, who are now having to pay up to £1 per day in travelling to and from work? Will my hon. Friend bear that matter in mind?

Mr. Davies

I do not think that this is the right way to deal with the problem. I do not think that we can make tax concessions or deductions for the cost of travel to work. There is a problem, and the best way of dealing with it is to try to reduce net levels of income tax.