Taxes
Charles Walker challenges the Chancellor over the number of people who will be worse off as a result of the budget.
Mr. Charles Walker (Broxbourne) (Con): What his most recent estimate is of the proportion of income a household on average earnings will pay in taxes in 2007-08. [130439]
The Chancellor of the Exchequer (Mr. Gordon Brown): A single-earner household on male average earnings with two children will pay 20.5 per cent. of their gross income in tax in 2007-08. That is 0.7 per cent. lower than it was in 1997-98. As a result of the Budget, that will fall a further half a percentage point to 20 per cent. in 2009-10-far lower than in 1997.
Mr. Walker: Will the Chancellor briefly explain how many people will be left worse off as a result of the Budget's changes to income tax and national insurance?
Mr. Brown: The vast majority of people will be better off -[Interruption.] more than 20 million households will be better off as a result of the Budget. I read the hon. Gentleman's comments in the Budget debate. He wants tax cuts of £8.4 billion per annum. At the same time he wants more police officers, more money for hospitals, more money for schools and more money for transport. Will he now tell us whether he supports our public spending plans?