§ 77. Mr. P. Roberts
asked the Chancellor of the Exchequer what would be the cost to the Treasury of a reduction in the standard rate of income tax of 6d. in the £ and of 1s. 6d. on earned incomes, respectively.
§ Mr. R. A. Butler
A reduction of 6d. in the standard rate of Income Tax from 9s. 6d. in the £ to 9s. 0d. in the £ withpro rata reductions in the reduced rates would cost £83 million this year and £95 million in a full year. A reduction of 1 s. 6d. in the standard rate from 9s. 6d. in the £ to 8s. 0d. in the £ in the case of earned income only would cost £96 million this year and £120 million in a full year.17W