National Insurance and Income Tax

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 9th March 1965.

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Photo of Hon. Nicholas Ridley Hon. Nicholas Ridley , Cirencester and Tewkesbury 12:00 am, 9th March 1965

asked the Chancellor of the Exchequer how much will be paid in Income Tax and National Insurance contributions in a fully year by a married man with no children earning £18 per week in 1964–65 and 1965–66, respectively.

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

£163 13s. 10d. in 1964–65 and £170 18s. 10d. in 1965–66 if his employer had not contracted out of the graduated scheme of National Insurance and £150 0s. 10d. and £157 5s. 10d., respectively, if his employer had contracted out.

Photo of Hon. Nicholas Ridley Hon. Nicholas Ridley , Cirencester and Tewkesbury

Is the hon. and learned Gentleman aware that this figure is the average wage? Is he further aware that our forecast that the Socialist Government would mean increased taxation to the average man has been amply borne out by these events? Will he apologise to the country for having misled it?

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

If hon. Members opposite had forecast the balance of payments situation they were to bequeath to us we might have been able to warn the taxpayers of the measures we would have to take in order to deal with the situation.

Photo of Mr Patrick Duffy Mr Patrick Duffy , Colne Valley

Is my hon. and learned Friend aware that, although £18 may be the average wage, a married man with two children has to earn £25 a week before he is affected to some extent?

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

That is quite right. A married man without children does not begin to pay additional Income Tax as a result of the last Budget until he is earning nearly £15 a week.