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Finance (No. 2) Bill

We will certainly table amendments to that effect, as well, and I hope that the Opposition will work together to try to reverse the proposal in the Bill. Turning to the impact on individual taxation, the picture is similarly depressing. We still see ever-greater complication and no serious moves to address the regressive nature of the taxation system. As was said earlier, the top 20 per cent. of people pay less as a proportion of their income in taxation than the lowest 20 per cent. That represents levels of inequality that are worse now than at any time under Thatcher or Major. Council tax, the most regressive form of taxation, which is unrelated to the ability to pay, remains. Among those struggling to pay it are pensioner households, which have been affected by the Chancellor’s decision to end the rebate for pensioner households. That will make this year’s council tax hikes even bigger for them.