§ Q18. Mr. Latham
asked the Prime Minister whether she will make a statement on the progress of the Government's policies for income tax reductions at all levels; and what are the Government's further objectives in this regard.
§ The Prime Minister
In his Budget Statement my right hon. and learned Friend announced proposals for the reduction of income tax at all levels amounting to £4.5 billion in a full year. These proposals, which have since been approved by the House, include reductions in the basic and higher rates of tax and increases in the main personal tax allowances, which, as my right hon. and learned Friend remarked, are as substantial as they are unprecedented. They applied to both earned income and savings income. They represented only the first stage in the major reduction in the burden of direct taxation that we are determined to make.