HC Deb 27 January 1977 vol 924 cc1681-3
4. Mr. Gwilym Roberts

asked the Chancellor of the Exchequer what are the latest figures available for the yield of a 1 per cent. wealth tax on £100,000 plus accumulated wealth; and what plans he has to introduce a wealth tax.

6. Mr. Clemitson

asked the Chancellor of the Exchequer if he will make a statement on what progress has been made towards the devising and introduction of a wealth tax.

The Chief Secretary to the Treasury (Mr. Joel Barnett)

The estimated yield of a 1 per cent. tax would be about £100 million from individuals, together with a further amount, not readily quantifiable, from certain kinds of trusts. A considerable amount of preparatory work has already been done. This, together with other studies, will ensure that we shall be ready with a suitable form of wealth tax at the appropriate time.

Mr. Roberts

Would not some indication from the Government that at long last they are going to go ahead in this direction be helpful in negotiating the next stage of the wages agreement? Would the Minister agree that in terms of the wealth of small firms with new ideas some movement from taxation of income to taxation of wealth is necessary?

Mr. Barnett

I am happy to confirm that the Government are fully committed to the wealth tax. There is no question about that.

Mr. Cormack

Will the Minister define wealth?

Mr. Barnett

If the hon. Member puts down a Question.

Mr. Jay

Will the Government introduce such a tax at the appropriate time?

Mr. Barnett

I am happy to assure my right hon. Friend of that. I congratulate him on his excellent chairmanship of the Select Committee. The things that happened within that Committee were not his fault. When the time is appropriate, the Government will come forward with the tax.

Mr. David Howell

Is not the Minister taking the matter frivously? Is not one of the major threats to jobs and to small businesses today the possibility of a wealth tax, as well as threats of industrial democracy and so on? Can the Government reassure British business that there will be no wealth tax introduced in the foreseeable future and certainly not during this Parliament?

Mr. Barnett

I would rather be accused of being frivolous than of being as miserable as the hon. Gentleman. He has wholly misunderstood, and frivolously, mischievously and grossly exaggerated the effect of capital transfer tax and of wealth tax, certainly in the shape or form that we have in mind, on small businesses.