The removal of the first £170 of weekly income from income tax.

The extension of the standard-rate band to £17,500 in respect of single persons and £35,000 for married persons.

The introduction of a new middle rate of income tax at 35 per cent, which would apply to income from £17,500 to £50,000 for single persons and £35,000 to £100,000 for married persons.

The maintenance of the 46 per cent rate for the top 5 per cent of taxpayers.

The completion of the transfer to tax credits from tax allowances.

The commencement of the integration of the income tax and social welfare systems.

An increase in child benefit to £25 per week per child for all children under five years.

The Labour amendment to the motion proposed:

The Government commit itself to an increase in the proposed national minimum wage to £5 an hour, and to the removal of this income level from the tax net.

Extension of the standard rate band to £20,000 for single people and £40,000 for married couples.

An end to the Government's commitment to a 4 per cent ceiling in public spending increases, in favour of a figure commensurate with either the rate of GNP growth or the projected increase in taxation income, whichever is higher.

The Government's amendment to the motion commended itself on its progressive economic policies, and called for the continuation of its programme of tax reform through an appropriately balanced mix of measures in the next and subsequent Budgets.