HC Deb 27 October 1983 vol 47 c420
13. Mr. Andrew MacKay

asked the Chancellor of the Exchequer if he will consider reducing the level of direct taxation in the United Kingdom.

Mr. Lawson

Yes, Sir, but not at the expense of letting Government borrowing rip, with all that that would mean for interest rates and inflation.

Mr. MacKay

Does my right hon. Friend agree that, on the day that the House is debating the degree of increase in expenditure in the Health Service, it would be right to reflect that a large number of people voted for our Government back in June because they hoped that they would be cost-effective in the public sector and that this would lead to cuts in direct taxation, which would give an incentive to those who create wealth and prosperity?

Mr. Lawson

My hon. Friend is right and I am sure that later today he will hear my right hon. Friend the Secretary of State for Social Services point out how he is trying to get a more cost-effective Health Service.

Mr. Skinner

Is the Chancellor aware that he would be able to bring direct taxation down more easily if he were to bring in some controls on the £4,000 million lost through tax avoidance and tax evasion, exemplified in an article this week, which showed that the Duke of Devonshire has now set up a trust and does not pay any tax and has thus joined the ranks of Lord Vestey and his group who somehow do not seem to pay any taxes?

Mr. Lawson

It has now become almost part of our constitution that the hon. Gentleman should bring out the Duke of Devonshire each Question Time, whatever the subject under discusssion.

Mr. John Townend

Does my right hon. Friend agree that at least a portion of savings from privatisation should go back to the Treasury to pay for reduced taxation?

Mr. Lawson

Although the purpose of privatisation is to have a more effective, more efficient, more competitive and more dynamic economy, there are benefits to the Treasury along the road.