<P> Gladstone had set 1860 as the year for the repeal of income tax, and his Budget that year was eagerly awaited . Ill health caused it to be delayed and for his speech to be shortened to four hours . But he had to tell the House that he had no choice but to renew the tax . The hard fact was that it raised £ 10 million a year, and Government expenditure had increased by £ 14 million since 1853 to £ 70 million (these figures should be multiplied by 50 for a modern equivalent). </P> <P> Gladstone was still determined that income tax should be ended . When a Select Committee was set up against his wishes to consider reforms which might preserve it, he packed the committee with supporters to ensure that no improvements could be made . In 1866, the Whigs' modest attempts at Parliamentary reform failed to win support in Parliament and the Conservatives returned to power, although with no overall majority . Disraeli succeeded where Gladstone had failed, seeing the Reform Bill of 1867 become law . This gave the vote to all householders and to those paying more than £ 10 in rent in towns--and so enfranchising many of the working class for the first time . Similar provisions for those living in the country came with Gladstone in 1884 . </P> <P> While Disraeli had gambled that an increased electorate would ensure a Conservative majority, and in 1868 he was Prime Minister, the election of that year saw the Liberals--as the Whigs had become--victorious under Gladstone . Income tax was maintained throughout his first Government, and there were some significant changes made including the right to appeal to the High Court if a taxpayer or the Inland Revenue thought the decision of the appeal Commissioners was wrong in law . But there was still a determination to end it . The Times, in its 1874 election coverage, said' It is now evident that whoever is Chancellor when the Budget is produced, the income tax will be abolished' . </P> <P> Disraeli won the election, Northcote was his Chancellor and the tax remained . At the time it was contributing about £ 6 million of the Government's £ 77 million revenue, while Customs and Excise contributed £ 47 million . It could have been ended, but at the rate at which it was applied (less than 1%) and with most of the population exempt, it was not a priority . With worsening trade conditions, including the decline of agriculture as a result of poor harvests and North American imports, the opportunity never arose again . </P>

What was the tax rate in 1970 uk