§ 17. Mr. BarnesTo ask the Chancellor of the Exchequer what are the latest available figures for total personal taxation as a percentage of the total tax take; what was the equivalent figure in 1978–79; and if he will make a statement. [330]
§ Mr. WaldegraveTotal personal taxation was 69½ per cent. of total non-North sea taxes and national insurance contributions in both 1978–79 and 1995–96.
The Government are committed to low taxation and a tax system that raises revenue in ways that do least damage to the economy and encourage enterprise. Government tax reforms since 1979, particularly the switch from direct to indirect taxation, have allowed people to keep more of the money they earn to spend or save as they choose. By sharpening work incentives and encouraging wealth creation, the Government have laid the foundation for sustained long-term improvement in general living standards.