§ 5. Mr. David ShawTo ask the Chancellor of the Exchequer what recent representations he has received regarding the lower rate of income tax. [28493]
§ The Financial Secretary to the Treasury (Mr. Michael Jack)The Chancellor receives a steady flow of representations and letters regarding all aspects of the tax system.
§ Mr. ShawCan my hon. Friend confirm that the Government are well on the way to a 20 per cent. basic rate of income tax? Can we, please, have it soon? Will he also confirm that the Opposition are split on whether to have higher taxes or lower taxes?
§ Mr. JackI can certainly confirm to my hon. Friend that my right hon. and learned Friend the Chancellor in the most recent Budget took three steps towards his long-term stated objective of a basic rate of a 20p tax. At least we have a clear policy. Opposition Members are like a pack of yelping dogs—as soon as one gets out ahead with an idea, the others bite him. All we hear is the yapping of uncertainty.
§ Mrs. Anne CampbellWill the Minister confirm that it is now Government policy to abolish inheritance tax and capital gains tax? Will he confirm that that will cost £4.6 billion by the end of the century? Is that, in fact, his policy—a policy that will benefit very few people—or is his priority to lower income tax, which will benefit very many more people?
§ Mr. JackI find the hon. Lady's comments somewhat astonishing. She seems to attack our desire to ensure that people who have worked during their lives can continue to keep some of that wealth and pass it on to their families. We noted that the Labour party voted against our proposal in the Finance Bill to increase the level of allowance on inheritance tax. Labour has no clear policy on capital gains tax. We realise that that tax distorts investment. That is why our long-term objective is to remove it.