The Opposition also refused to allow the lifting of the band for higher rates of tax which affects middle and upper middle management in industry on whom our future industrial recovery so much depends. That was particularly resented in a year when the same people were for the first time having to pay tax on the petrol they use in their cars. That was felt strongly and was mentioned on numerous occasions during the election campaign.
In their first Budget after the 1979 electoral victory the Government showed great courage in dealing with the problem of excessive taxation at higher levels where the British were taxed at a higher rate than anywhere else in the world—75 per cent. on earnings and no less than 98 per cent. on unearned income.