§ 41. Mr. Frank Allaunasked the Chancellor of the Exchequer what estimate he has made of the cost to the Exchequer of raising all personal income tax allowances by £100, £200 and £300 a year, respectively; and of the cost of restricting these increases to those earning under £30 a week.
§ Mr. TaverneThe cost of the suggested increases in the single and married allowances and the maximum wife's earned income allowance is estimated at £870 million, £1,600 million and £2,200 million, respectively, for a full year. I am not sure precisely what my hon. Friend has in mind in the second part of his Question, but there would be practical and other difficulties involved, and the costs would be in the region of two-thirds of the figures I have given.
§ Mr. AllaunDoes my hon. and learned Friend agree that it would be far fairer to those on low incomes to increase personal allowances rather than to reduce income tax by 6d. or some other amount in the £?
§ Mr. TaverneI think that my hon. Friend has received a letter from my right hon. Friend saying that this is one of the many considerations which he will bear in mind.