Surtax Rates for 1972–73

Part of Clause 10 – in the House of Commons at 12:00 am on 11 April 1973.

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Photo of Mr Peter Rees Mr Peter Rees , Dover 12:00, 11 April 1973

The hon. Gentleman knows that that point neither strengthens his case nor weakens mine. It is interesting, and I would be happy to debate it with him later. I hope that this country will never have to pay the price which those countries have had to pay. I am glad that it has not had to do so. I take the hon. Member's point but it does not bear on my point, which is to do with the reference to the traditions and the historic past of various countries. The taxpayers of Germany and France have no reason to expect a better deal than our taxpayers and yet they get a better deal in terms of direct taxation.

The hon. Gentleman then says, "All right, ignore the comparative statistics". We shall not be able to ignore them, because, as my hon. Friend the Member for South Angus (Mr. Bruce Gardyne) has pointed out, with the free movement of capital and labour inside the Common Market we shall lose our best entrepreneurial talent upon which the success of our economy must ultimately depend. [Interruption.] The hon. Member for Gateshead, West is obviously not aware of the economic facts of life. He constructed an interesting budget, and no doubt some of his advice will filter through to the clients of his hon. Friend the Member for Heywood and Royton (Mr. Joel Barnett). May we perhaps return to the central theme of the debate rather than deal with peripheral subjects?

The hon. Member for All Saints would say, if he were forced from the absolute or comparative approach that this is not the right moment. I ask him, in all honesty: when has it ever been the right moment for members of the Socialist Party? There have scarcely been any circumstances in which a Socialist Chancellor has cut direct taxation. There were minimal cuts between 1945 and 1951 but so minimal that they can be disregarded. We are forced to the conclusion that no moment is ever right for a Socialist Chancellor to cut direct taxation.

The hon. Member has overlooked one significant point. We are talking about the surtax rates for 1972–73, not the rates for 1973–74. In 1972–73, speaking from memory, centrally bargained wage rates went up by more than 10 per cent. Judged by this standard, it would not, in my view, be unjust for some relatively modest cuts to be made now in the rates of direct taxation.

The hon. Member for All Saints concluded by referring to "the ordinary man". I say with confidence that the ordinary man recognises that by slicing the problem, taking account of our competitors in the Common Market, we still bear a higher burden of direct taxation than they do. The ordinary man recognises that the tax rates put forward by the Chancellor of the Exchequer amount to a long-overdue measure of justice to those who have paid far too much tax for far too long.