HC Deb 18 April 1996 vol 275 cc831-2
5. Mr. Jamieson

To ask the Chancellor of the Exchequer what representations he has received from the public on current levels of taxation. [24312]

The Economic Secretary to the Treasury (Mrs. Angela Knight)

My right hon. and learned Friend the Chancellor has received a number of representations on current levels of taxation, including some from residents of Plymouth welcoming the tax cuts made in his November Budget.

Mr. Jamieson

Can the Minister confirm that, by the end of this financial year, a typical family, even in Plymouth, will have paid £2,000 more in taxes since the general election? Will she also confirm that she supported those 22 tax rises which have confirmed that the Tories are instinctively a party of higher taxation?

Mrs. Knight

I will confirm that, as a consequence of the November Budget, tax changes are worth £190 this year to couples with children. The improvement in the economy means that they are likely to be £450 better off and, since 1979, they are £4,500 better off. That is our record. When the hon. Gentleman's party was in power from 1974 to 1979, people were better off by only £80. They are £4,500 better off under the Conservatives.

Mr. John Townend

Can my hon. Friend confirm that the Government intend to have plenty of clear water between themselves and the Opposition on taxation policy? I urge the Government to cut spending so that they can safely continue to cut taxes and make it clear to voters at the next election that we are still the party of low taxation and Labour is the party of high taxation.

Mrs. Knight

I can assure my hon. Friend that we shall be prudent in everything we do. We are aware that successful countries are those that tax less and spend less, and we propose to make this a successful country. I can also assure him that a recent survey of 600 executives concluded that most of them forecast higher taxes, greater unemployment, a diminished international standing and a resurgence of the left if Labour came to power. The Opposition are not fooling people, I am glad to say.

Mr. Darling

Can the Economic Secretary confirm that a typical family is now paying a higher effective rate of tax than it did in 1979, and that the only Tory instinct on taxation is to mislead and distort? Far from getting a tax bonanza, as the chairman of the Tory party claimed today, Britain is getting a tax nightmare for millions, and that nightmare is about to be experienced by rather a large number of the Minister's colleagues.

Mrs. Knight

I can confirm that we have the lowest basic rate of tax for over 50 years, that people will be better off this year as a result of the combination of the Budget and the improving economy and that people are substantially better off since 1979. When Labour had its chance, it crucified people and companies with taxes. That is why people left the country and why businesses were doing so badly. Under us they are not doing that: they are doing well.

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