§ 14. Mr. Chapmanasked the Chancellor of the Exchequer what proportion of total Government receipts were met by taxes on income and taxes on spending, respectively, in 1984–85; and how these figures compare with 1978–79.
§ Mr. MooreAs a percentage of total general Government receipts, taxes on personal sector spending increased from about 27 per cent. in 1978–79 to around 28½ per cent. in 1984–85, while personal income taxes have declined from 29½ per cent. in 1978–79 to 24 per cent. in 1984–85.
§ Mr. ChapmanI recognise that that answer is broadly in line with the Government's intentions way back in 1979, but does my hon. Friend think that the proportions are about correct, or would he like the trend to continue?
§ Mr. MooreClearly, the Government believe that it is essential, if we are to encourage initiative and enterprise, to seek further reductions in direct income tax. That must be the aim if there is to be scope for my right hon. Friend the Chancellor to reduce direct taxation.