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According to Michael Meacher, this change put an end to a previous inequity whereby two families, in otherwise identical circumstances, paid differing amounts of tax "simply because in one case the child possessed property transferred to it by a grandparent, while in the other case the grandparent's identical property was inherited by the parent." [44] In the 1969 budget, income tax was abolished for about 1 million of the lowest-paid and reduced for a further 600,000 people, [70] while in the government's last budget (introduced in 1970), two million small taxpayers were exempted from paying any income tax altogether

This applied to incomes over 20,000 (equivalent to 189,615 in 2025), [103] and combined with a 15% surcharge on 'unearned' income (investments and dividends) could add up to a 98% marginal rate of personal income tax