HC Deb 13 May 1985 vol 79 cc1142-3
6. Mr. Canavan

asked the Chancellor of the Exchequer whether his Department is considering any changes in methods of raising revenue.

Mr. Hayhoe

My right hon. Friend's proposals for this year are in the Finance Bill.

Mr. Canavan

Will the Treasury firmly reject the halfbaked idea of some Tory Members to replace the rating system with a regressive flat rate poll or residence tax, which, whatever it might be called, would be a tax on democracy, especially if people had to pay several hundred pounds a year for the right to vote? Does the hon. Gentleman agree that that would be an even bigger afront to democracy than using a £50 million rate rebate to bribe the Scottish Tory party conference in a vain attempt to try to stop Scottish Conservative Members from becoming an endangered species?

Mr. Hayhoe

While not for a moment accepting the points made by the hon. Gentleman in that supplementary question, I welcome his interest in the means of raising revenue. What I hear from him most of the time in the House are ways of spending taxpayers' and ratepayers' money.

Mr. Roger King

Does my hon. Friend agree that one way to raise taxes would be by the method enunciated by the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley) in his Tribune message, namely, to soak people earning over £20,000 a year because they are supposedly rich?

Mr. Hayhoe

Some of the proposals that have emanated from Opposition Members have been arrant nonsense.

Mr. Wainwright

Do the Minister's replies on this issue mean that the career of the Chancellor as a tax reformer is now effectively at an end? If not, what plans for tax reform are coming forward?

Mr. Hayhoe

If the hon. Gentleman reflects on what my right hon. Friend said in his Budget speech —certainly in respect of national insurance contributions and his proposals on personal taxation—he will see that his reputation as a tax reformer has been enhanced by his Budget proposals.

Mr. Bill Walker

As one who does not feel like an endangered species—[Interruption.] —and is unlikely to become one, may I ask my hon. Friend to bear in mind when considering taxation changes that the Labour party in Scotland has for decades bought votes by the way in which it has engineered the rates and the rating system?

Mr. Hayhoe

The Labour party's record in Scotland in this respect is appalling. I am sure that my hon. Friend and many of his colleagues draw attention to that fact when they are in their native land.