Taxation

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 12th March 1992.

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Photo of Andrew Mitchell Andrew Mitchell Assistant Whip (HM Treasury) 12:00 am, 12th March 1992

To ask the Chancellor of the Exchequer whether he will make a further statement about his long-term objectives for income tax.

Photo of John Maples John Maples The Economic Secretary to the Treasury

Our objective is to reduce the basic rate of income tax to 20p in the pound when it is prudent to do so.

Photo of Andrew Mitchell Andrew Mitchell Assistant Whip (HM Treasury)

Is it not clear while the Budget has cut the marginal rate of tax from 25p to 20p for 4 million people on modest incomes, the Labour party would cut their take-home pay and threaten their jobs by its absurd minimum wage proposals?

Photo of John Maples John Maples The Economic Secretary to the Treasury

My hon. Friend is right. The Budget will help to reduce the marginal rate of tax immediately to 20p in the pound for those 4 million people. The Labour party may not have seen today's Gallup poll, which says that 71 per cent. of those questioned supported and approved of the 20p band.

Photo of Mr Chris Smith Mr Chris Smith , Islington South and Finsbury

While we are on the subject of long-term objectives, will the Economic Secretary confirm that the Red Book shows clearly that the overall tax burden within our economy has risen in the past 13 years and, moreover, is set to rise further in the next four or five years? The Government have not cut the tax burden—they have raised it.

Photo of John Maples John Maples The Economic Secretary to the Treasury

If the hon. Gentleman believes that, why is he about to vote, tonight and tomorrow, to raise the tax burden?