Income Tax (Hansard, 13 March 1986)

§ 3. Mr. Freud
asked the Chancellor of the Exchequer what representations he has recently received concerning cuts in income tax.

§ The Financial Secretary to the Treasury (Mr. John Moore)
We have received a wide range of representations on this subject.

§ Mr. Freud
I thank the Minister for his reply. Does he accept that, in the light of the information today that only 3 per cent. of the work force have benefited from budgetary changes, most of the working people of this country cannot afford many more Tory tax cuts?

§ Mr. Moore
My right hon. Friend the Chancellor of the Exchequer and I have tried to remind the House on many occasions that working people are benefiting at all levels, right down to half average earnings, from the enormous increase in the dynamics of the economy and the reduction in inflation. I wonder whether I might draw the attention of the constituents of the hon. Member for Cambridgeshire, North-East to the fact that clearly the budgetary submission of their Member of Parliament should be that, if the Chancellor has the opportunity to reduce taxes in next week's Budget, those reductions should not go to his constituents.

§ Mr. Beaumont-Dark
Will my right hon. Friend observe that many people are deeply appreciative of the lower rates of tax under this Government at the higher levels, but that, if there is any more taxpayers' money to be put around, it is better that the decaying inner cities should receive the benefit?

§ Mr. Moore
I know that my right hon. Friend the Chancellor will be listening carefully to my hon. Friend's budgetary lobbying.

§ Mr. Winnick
Why does the Minister not have the honesty to admit, be it in Fulham or anywhere else, that most people are now paying more tax, direct and indirect, than in 1979 when the Government took office? Have the Government any estimates of the amount of money which has been lost to the Treasury as a result of mass unemployment? If those millions of people had been allowed to earn their living, if there had been a different policy, how much more revenue would there have been from the people who are now unemployed being able to pay proper taxation?

§ Mr. Moore
It might be wise if I stay with the first of the hon. Gentleman's points, which was totally inaccurate. The people of this country are paying lower levels of income tax at all levels than they were when the Government came to power. Beyond the facts in connection with income tax, all people in work, whether on half, three quarters or average earnings, are better off than they were at any time under the previous Labour Government.