§ Mr. Proctorasked the Chancellor of the Exchequer if he will now make a statement on the prospects for reducing the present general level of income tax over the next three years.
§ Mr. MooreI am confident that as we maintain firm control of public expenditure and as the performance of the economy continues to improve there will be room for reductions in the tax burden during this Parliament.
468WChancellor of the Exchequer announced on 25 July 1983 that, with effect from 1 September, VAT paid by Government Departments and by health authorities on certain specified contracted-out services would be refunded to them, to remove a possible disincentive to the cost-effective use of outside contractors.—[Vol 46, c. 306.] The overall effect on health authorities and health boards, in respect of services already contracted out, was intended to be neutral and the health cash limits are being reduced to achieve this. The changes are as follows: