Bygone budgets: March 1974

Chancellor: Denis Healey
Government: Labour

guardian.co.uk, Wednesday March 3 1999 15.32 GMT

With Labour back in power, it was the first budget from new chancellor Denis Healey, who had held the job for just three weeks. Labour MPs welcomed the budget, except for Dennis Skinner who walked out of the Commons when he heard that Mr Healey was postponing the introduction of a wealth tax. Two Conservative MPs wore Chairman Mao suits for their budget day performance in mocking tribute to Mr Healey who, they said, was the first British chancellor to have been a member of the Communist party.

Income tax
Income tax rates raised by 3% taking the basic rate to 33%. A new tax band at 38% was introduced and the top rate was increased from 75% to 83%.

Corporation tax
Increased by 12% to 52%.

VAT
VAT of 10% to be charged on petrol. VAT also applied to sweets, ice cream, soft drinks and crisps.

Housing
Tax relief for interest on loans used to buy second homes was withdrawn.

Duties
Beer up 1p, wine up 10p and spirits up 20p.