Tax Revenue

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 26th October 1971.

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Photo of Mr Eric Cockeram Mr Eric Cockeram , Bebington 12:00 am, 26th October 1971

asked the Chancellor of the Exchequer what was the increase in the total annual yield of taxation between 1964 and 1970; and what is his latest estimate of the reductions in the annual yield as a consequence of the measures introduced since June, 1970.

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

In the years from 1964–65 to 1969–70 total tax revenue increased by over £5.000 million, or over £3,000 million at 1964–65 prices. The reductions in taxation introduced since June, 1970, amount to about £1,400 million a year.

Photo of Mr Eric Cockeram Mr Eric Cockeram , Bebington

Do not these figures show that the reductions in taxation achieved by the present Government have been the highest in Britain's history, and would my hon. Friend agree that they will stimulate economic activity in Britain?

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

While I cannot claim to have pursued the historical researches which my hon. Friend has suggested I can certainly confirm that already there is evidence of a strong movement towards expansion.

Photo of Mr Joel Barnett Mr Joel Barnett , Heywood and Royton

But bearing in mind the charges which were imposed at the same time, would the hon. Gentleman care to give an estimate of the effect of these charges upon the £30-a-week man and under, in comparison with the man earning £3,000 and more?

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

These matters were fully explored in the Budget debate, and I seem to remember that the figure quoted by the right hon. Member for Birmingham, Stechford (Mr. Roy Jenkins) in his Budget speech turned out to show a totally different effect from what he expected.