§ 3.8 p.m.
§ Lord SHINWELLMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government to state the total sums received in direct taxation from employees subject to the "pay as you earn" policy from January, 1973, to the latest available date.
§ Lord JACQUESMy Lords, the Inland Revenue's gross receipts of income tax through the PAYE system between January, 1973, and October, 1974—that is 22 months—were £11,900 million. This figure includes not only tax paid by employees but by office holders such as directors, Members of Parliament and judges. It also includes tax paid by occupational pensioners. Separate figures for employees arc not available.
§ Lord SHINWELLMy Lords, would my noble friend agree this is a vast contribution made by employed persons, even if it includes directors and Members of Parliament? Has he any idea how it compares with the contribution made by way of direct taxation by industry? And has he got in mind the additional sums paid by employed persons in indirect taxation? Has not this got some relation to the wages that some of the employed persons receive, and the vast sums of money extracted from them by way of taxation?
§ Lord JACQUESMy Lords, no matter who is paying, it is a vast sum. The amount collected under PAYE in 1971 was 59 per cent. of the whole of direct taxation. In 1972 it was again 59 per cent., and in the 22 months from January, 1973, up to October, 1974, it was 60 per cent., so there was a slight movement upwards. I would point out that my right honourable friend recently stated in the 294 other place that he was fully aware of the effect of inflation upon income tax allowances, and he gave an undertaking to review these allowances in connection with his Budget next spring.
§ Lord SHINWELLMy Lords, it is very interesting to have figures furnished to Members of your Lordships' House which indicate that the employed persons of the country, whatever category they are associated with, are actually paying more by way of direct taxation than the so-called propertied classes. My noble friend will understand that I am not raising the issue of a class war, but should not these facts help to diminish the criticism that is often levelled against employed persons who ask for increases in their salaries and wages?
§ Lord JACQUESMy Lords, I would wholly agree with my noble friend.
§ Lord CARRINGTONMy Lords, is the noble Lord aware—and there is no earthly way that he could be—that I received my first pay as Leader of the Opposition last week, and the net amount payable to me was 71p? Is the noble Lord satisfied that that is more pay than earned?
§ Lord JACQUESMy Lords, I would point out that I was dealing with figures up to October, 1974.
§ Lord SHINWELLMy Lords, in view of that pathetic hard luck story that has been given to the House, may I ask my noble friend whether, with some of his colleagues on the Front Bench, he would consider taking the hat round in order to help the noble Lord?