§ Q4. Mr. CohenTo ask the Prime Minister what was the tax burden on an average income family in 1991; and what is the estimated burden on a similar family in 1995.
§ The Prime MinisterThe answer would depend on a number of factors, such as family size and expenditure pattern, which the hon. Gentleman does not specify, but I can tell him that real take-home pay after tax and inflation has risen by 4 per cent.—about £11 a week in today's prices—since 1991 for a one-earner family on average earnings and is expected to rise further next year.
§ Mr. CohenDespite the Prime Minister's manifesto assertion, "I believe in low taxes," since the previous general election an average family must pay an extra £15.50 a week in tax. Will he give the reason for that whacking increase, especially as public services have deteriorated or been privatised? Surely the Prime Minister should be referred to the Nolan committee for bringing manifesto commitments into disrepute.
§ The Prime MinisterWere that to be so, after that question the hon. Gentleman would have to join me, for he will know that the Labour party proposes to introduce—in addition to existing taxes—a windfall tax, a payroll tax, a health tax, an entertainment tax and a development tax. That is on top of the intricate piece of accountancy by the Liberal Democrats, on which I congratulate them, which suggests that Labour party plans would already add 5p to the standard rate of income tax. While we head for 20p, the Labour party heads for 30p.