HC Deb 24 March 1983 vol 39 cc1006-7
8. Mr. Eggar

asked the Chancellor of the Exchequer what representations he has received following his Budget about the personal tax thresholds.

Mr. Brittan

My right hon. and learned Friend's proposals have been welcomed warmly by my hon. Friends and, I believe, by the country as a whole.

Mr. Eggar

Is my right hon. and learned Friend aware that the increase in thresholds has been welcomed by the low-paid and widows? Will he confirm that a major objectivee of the next Conservative Government will be to take further action against the unemployment and poverty traps?

Mr. Brittan

I have observed the warm welcome given to these proposals by those to whom my hon. Friend referred. I agree that our objectives should be to make further progress in that direction.

Mr. Straw

Is the reality that, despite the change thresholds for people on average earnings are still lower in real terms than they were when the Government came to power? The burden of direct taxation for the poorest families in work—those on half-average earnings—has increased by nearly 50 per cent. in real terms since the Government came to power. How does that square with the promises in the Chief Secretary's election manifesto that there would be reductions in taxation at all levels of income?

Mr. Brittan

The hon. Gentleman, as always, is highly selective and not entirely accurate. The thresholds are 5 per cent. in real terms above the 1978–79 level.

Mr. Ralph Howell

While I agree with my right hon. and learned Friend the Chancellor that the problems of the unemployment and poverty trap have been getting worse for the past 30 years, is he aware that many Conservative Members are not satisfied that sufficient progress is being made in this area? Can my right hon. and learned Friend assure us that he will find a way out of this problem in less than 30 years?

Mr. Brittan

Sufficient progress is rarely made, but substantial progress has been made. As for the next 30 years, that is perhaps five years longer than the time scale on which I think we should operate.