ABSTRACT
This chapter charts the course of transition to the relative prosperity of today. Income tax fell much more heavily on higher incomes, rather than affecting practically all earners, as it does today; and the standard rate had risen to 25 per cent, as against 6 per cent before the war. The growing incidence of taxation means that national income per person does not accurately measure the amount available for spending. The inter-war period therefore saw a considerable evening out in income distribution, in spite of unemployment. Property income's share again fell, although less drastically than over the First World War period. Women's relative earnings increased over the Second World War period and then stagnated until the Equal Pay Act, which came into effect in 1970 and saw a further reduction in the differential with men. The increase is related to the post-war improvement in agricultural prices and, subsequently, to the Common Agricultural Policy.
