§ I therefore propose, as from the beginning of the next financial year, to raise the personal allowance for single persons from £80 to £110 a year, and for married couples from £140 to £180 a year, and to raise the exemption limit from £110 to £120 a year. This will bring all these allowances back, not merely to where they stood in 1941, when the post-war credits were instituted, but to the pre-war level, and it will wholly relieve from Income Tax at least 2,000,000 persons who are now liable. It will also, of course, partly relieve, through increasing their tax-free margin, all those who remain liable.1893
§ Following this increase in allowances, in the case of earned incomes—investment incomes would show a rather lower figure—no single person next year will have to pay Income Tax unless his income exceeds £2 7s. a week. No married couple without children will pay Income Tax next year unless their income exceeds £3 17s. a week; no married couple with one child unless their income exceeds £4 18s. a week; no married couple with three children unless their income exceeds £7 1s. a week; and no married couple with five children unless their income exceeds £9 3s. a week.
§ Mr. Dalton
The remission of this group of allowances will cost in round figures £160,000,000 in a full year, subject to certain abatements which I will indicate in a moment. That is the gross cost.