'With your permission Mr Speaker I would like to make a statement on how I propose to deal this year with the consequences of the withdrawal of the 10 pence rate of income tax.
'In the Budget last year my Right Honourable Friend introduced just two rates of tax with the basic rate cut from 22 pence to 20 pence — the lowest rate for 75 years.
'At the same time allowances for pensioners over the age of 65 were increased. And recognising that as the tax credit system became more developed and more generous we were better able to target resources on low-income...
