The 20p band shows the way ahead to further tax reductions. We can steadily extend it up the income scale, so that, as and when prudent, more and more people pay income tax only at this lower rate.
Both the Budget and the manifesto made clear our determination to pursue the fight against inflation. Within the framework of the exchange rate mechanism and with the support of sound monetary and fiscal policies we have the opportunity to do as well as and better than our European competitors. Our aim is to restore to this country the security of stable prices, and our plans on fiscal matters are clearly set out in the Red Book.