§ First, measures affecting the next financial year 1978–79. The House decided this summer to commit the Government to increasing personal tax allowances each spring in line with the rate of price increase over the previous calendar year unless they sought explicit permission to do otherwise.
I believe it is right that we should not seek to waive this requirement in the coming year. The Government therefore plan to raise tax thresholds for the next financial year as laid down in the Finance Act 1977. This is likely to require a 12 per cent. increase in personal allowances above the level set by the 1977 Finance Act, at a cost of around £1,200 million in a full year.