§ 22. Mr. HawkinsTo ask the Chancellor of the Exchequer what income tax rates were(a) in 1978 and (b) in 1995; and what plans he has for further reduction in income tax. [28511]
§ Mr. JackIn 1978–79, the first £750 of taxable income was taxed at 24 per cent. and the next £7,250 at the basic rate of 33 per cent. There were nine higher rates of tax, beginning at 40 per cent. and culminating in a rate of 83 per cent. on taxable income over £24,000.
In 1996–97, the first £3,900 of taxable income is taxed at 20 per cent., and the next £25,500 is taxed at the basic rate of 24 per cent. All income above this level is taxed at a single higher rate of 40 per cent. It is our intention to reduce tax rates when it is right for the economy. My right hon. and learned Friend the Chancellor will announce his plans for taxation in November.