§ 79. Mr. Rifkind
asked the Chancellor of the Exchequer what proposals he has to deal with the interaction of social security benefits and income tax.
§ Mr. Joel Barnett
I am aware of the difficult problems that may arise from the interaction of social security benefits and income tax. One way of easing these problems would be to raise the tax threshold. My right hon. Friend made it clear in his statement to the House on 29th March that one of his highest priorities for the future would be to raise the tax thresholds clear of the level of the main social security benefits.
During consideration of the Finance Bill the personal allowances have been further increased, and the amendments that have been tabled, which seek to restore the balance of the allowances in favour of married people, should help further.