HC Deb 30 April 1981 vol 3 cc897-8
8. Mr. Ioan Evans

asked the Chancellor of the Exchequer what was the amount of revenue raised from direct and indirect taxation on a yearly basis in the years ended April 1979, 1980 and 1981; and what is the estimated revenue for the year ending April 1982.

Mr. Brittan

In the financial year 1978–79, £28 billion was raised from direct taxation and £30½ billion from indirect taxation. In 1979–80, the figures were respectively £33 billion and £40 billion; in 1980–81, £39 billion and £47 billion respectively; and for 1981–82, I estimate that about £46 billion will come from direct taxation and about £54 billion from indirect taxation.

Mr. Evans

Does the right hon. and learned Gentleman agree that despite Tory election promises that the Conservative Party would reduce taxation, the vast majority pay more in income tax and in consumer taxation, because VAT has been increased from 8 per cent. to 15 per cent.? Before the day is out, will he consider the problems that face motorists? The Government have doubled taxation on petrol to 83p a gallon. In addition there is a £70 car tax. Is he aware that there has been a 40 per cent. increase since the Conservative Party took office.

Mr. Brittan

The problems of motorists will be discussed in this afternoon's debate. There will be ample scope to deal with that question.

Mr. Squire

May I congratulate my right hon. and learned Friend on the way in which the balance between direct and indirect taxation has been improved by the Government and on the way in which taxation on those who work can be relatively balanced with taxation on those who do not?

Mr. Brittan

I am grateful to my hon. Friend for those remarks. The proportion of direct taxation in the total is lower than it was before the Conservative Party was elected to office. We anticipated that change of direction and believe that it is both worthwhile and important.

Mr. Weetch

Does the Chief Secretary realise that as a result of the selective effect of the civil servants strike action, the Government owe small firms in my constituency considerable amounts of money in VAT? Does he accept that, as a result, those firms are in short-term cash-flow difficulties, which include the repayment of high interest rates because they have had to borrow money? Have the Government any plans to help those in such difficulties?

Mr. Brittan

I hope that those on strike will listen to what the hon. Gentleman has said. I hope that they will realise that their action causes harm and threatens employment in exactly the way that the hon. Gentleman has described. In so far as it is possible to give assistance and understanding to firms in such difficulties, the tax authorities seek to do so.

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