§ 18. Mr. Ian BruceTo ask the Chancellor of the Exchequer what has been the effect on the economy of changes in the level of direct taxation since 1979; and if he will make a statement. [15293]
§ Sir George YoungSince 1979, we have reduced the standard rate of income tax from 33p in the pound to 25p in the pound, and a loser rate of 20p in the pound now covers over 5 million people. We have also reduced the main corporation tax rate, from 52 per cent. to 33 per cent. These changes have improved incentives and helped the supply side.