HC Deb 06 November 1986 vol 103 cc1070-1
5. Mr. Barron

asked the Chancellor of the Exchequer how many representations he has received on the Government's proposals to abolish the married man's allowance.

Mr. MacGregor

We have received a considerable number of representations on the Green Paper. The great majority of those expressing a preference support the proposal to introduce transferable allowances; which is what the Government are recommending and is not the same thing as abolishing the married man's allowance.

Mr. Barron

If the estimated cost of the proposals in the Green Paper will not be a cost to the Exchequer, are they not likely to impose a further tax burden on over 6 million tax payers, bearing in mind that if the cost were to fall on the Exchequer it would be as high as £5.4 billion? Why does the Minister not open to discussion the cost of this proposed scheme, when at the end of the day it will not do justice to the married woman's allowance anyway?

Mr. MacGregor

It is intended that the scheme will be introduced over a period, and much depends on what happens to thresholds and allowances during that period. I believe, as is clear from the responses to the proposals in the Green Paper, that there are so many benefits in moving to transferable allowances that it is a tax reform that the vast majority of taxpayers would support.

Mr. Marlow

Why does my right hon. Friend not take action to take the money from the married man's allowance and use it to encourage mothers to stay at home and look after their children? Will he, with one move, open up jobs in the labour market for men who cannot find work and at the same time encourage a lot of mothers to do that which they do best — stay at home and look after their children?

Mr. MacGregor

The proposal will give choice to married couples. It will give benefits to wives who are having their first children, who perhaps have worked before and who stay at home to look after their children. They will be able to transfer the allowance to their husbands. The proposal we recommend helps couples at the stage in their lives at which suddenly one partner becomes financially dependent on the other. The crucial factor is that it gives them a choice.