§ Finally, I propose to widen the band of income charged at the reduced rate of tax, which will benefit most markedly those whose incomes will no longer reach the standard rate even when they work overtime or receive extra wages for increased production.
§ At present, the first £50 of taxable income is chargeable at 3s. and the next £75 at 6s. I propose increasing this, by enlarging the 6s. step to £200, so that, in future, the first £50 will be chargeable at 3s. and the next £200 at 6s. After allowing for the increased Earned Income Relief, these rates become, effectively, 2s. 5d. and 4s. 10d. in the £. At present, the single man becomes liable to the top rate of 7s. 6d. in the £—making allowance for the Earned Income Relief—if he earns regularly more than £5 12s. a week; in future, he will not be so liable until he earns £8 17s. a week, and then only at 7s. 2d. instead of at 7s. 6d. For a married man with no children, the present figure is £7 4s.; in future, it will be £10 10S. A married man with two children will be liable to the top rate only if he earns more than £13 8s. a week, compared to the present figure of £10. The married woman in employment will, of course, benefit equally by this proposal in future. Last year, of the 18,500,000 people in the Income Tax field, 4,500,000 paid some tax at the standard rate. In future, less than 2,000,000 will have to pay any tax at the standard rate. This relief will cost £50 million in a full year and £44 million this year.