§ 99. Mr. DevlinTo ask the Chancellor of the Exchequer if he will make a statement setting out Government policy on tax reform.
§ 123. Mr. CarringtonTo ask the Chancellor of the Exchequer if he will make a statement setting out Government policy on tax reform.
§ Mr. Norman LamontThe Government's programme of tax reform has sought to create a climate in which businesses can thrive and individual initiative and risk-taking are rewarded. A major objective has been to leave people more of their own money, so that they can choose for themselves what to do with it. In particular the Government have reduced marginal tax rates so that an extra pound of earnings or profits is really worth having. We have reduced the basic rate of income tax from 33 to 25 per cent. and set a target of 20 per cent. Business taxation has been radically restructured, leaving the main United Kingdom corporation tax rate at 35 per cent., one of the lowest in the industrialised world. Five major taxes have been abolished completely.
We have also tried to ensure that, as a general rule, people's choices are distorted by the tax system as little as reasonably possible. In general, the aim is to charge lower rates on a broader base; thereby improving incentives and reducing distortions. However, the Government has also been prepared, when it is sensible, to promote well-targeted tax reliefs which will help to make the economy work better. Other important objectives have been to provide a fair deal for married women and to simplify the tax system.