HC Deb 21 February 1985 vol 73 cc569-70W
Ms. Clare Short

asked the Chancellor of the Exchequer what research he has carried out or studied into the job creation effects of cuts in the income tax rates and raising of income tax thresholds.

Value of European currency unit exchange rate (monthly averages) expressed in pound sterling
1979 1980 1981 1982 1983 1984 1985
January 0.6371 0.5347 0.5653 0.6109 0.5706 0.6219
February 0.6247 0.5260 0.5592 0.6163 0.5769
March 0.6153 0.5401 0.5604 0.6294 0.5904
April 0.6076 0.5390 0.5639 0.6006 0.5940
May 0.6424 0.6086 0.5301 0.5700 0.5844 0.5870
June 0.6330 0.6092 0.5396 0.5565 0.5758 0.5925
July 0.6139 0.6072 0.5509 0.5523 0.5751 0.5949
August 0.6179 0.5963 0.5522 0.5517 0.5675 0.5909
September 0.6355 0.5895 0.5813 0.5491 0.5683 0.5890
October 0.6490 0.5729 0.5893 0.5481 0.5783 0.5970
November 0.6553 0.5581 0.5773 0.5608 0.5708 0.6006
December 0.6495 0.5541 0.5685 0.5887 0.5732 0.6064

Mr. Moore

Income tax cuts improve incentives and encourage lower wage settlements. Low tax countries like the United States and Japan have experienced relatively large increases in employment. Evidence on the relation between wages and employment is set out in the recent paper by Treasury officials.