HC Deb 13 March 1986 vol 93 cc1073-4
11. Mr. Amess

asked the Chancellor of the Exchequer how many taxpayers he estimates are assessed at the standard rate of income tax during the current financial year.

Mr. Moore

Approximately 24 million, of whom 23 million pay tax exclusively at the basic rate.

Mr. Amess

Will my hon. Friend confirm that it remains the Government's policy to reduce the standard rate of taxation, and does he agree that, if the black economy was not as buoyant as it appears to be, we would all be paying less in tax?

Mr. Moore

My hon. Friend will know that the Government have reduced considerably the burden of income tax. The thresholds have been increased in real terms by 20 per cent., and the basic rate has been reduced from 33 to 30 per cent. I think it peculiarly inappropriate for me at this juncture to do more than draw the attention of my right hon. Friend the Chancellor to the remarks of my hon. Friend.

Mr. Blair

Does the Financial Secretary agree that those who do not pay tax exclusively at the standard rate certainly number among them some of those earning very high salaries in the City? In those circumstances, how does he justify allowing them not to have assessed for income tax the vast sums of money that they are paid when they join their new firms?

Mr. Moore

I remind the hon. Gentleman of the figures that the Chancellor gave earlier. Those paying above the basic rate pay a substantial amount of tax, well in excess of £2 billion. I should have thought that that was a clear indication of their commitment, through their very high rates of tax, to the success of the economy.