HC Deb 18 February 1960 vol 617 cc145-6W
78. Mr. McKay

asked the Chancellor of the Exchequer what revision he has made of the figures in Table 2 of the Blue Book on National Income and Expenditure, published in September, 1959, indicating that from 1954 to 1958 wages increased by 26 per cent., total personal incomes by 31 per cent., and payments to interest and dividends 42 per cent.; and whether he will, when preparing his Budget, consider what arrangements he will make so that a greater number of the lower income groups would cease to pay any Income Tax.

Sir E. Boyle

Any necessary revision of the figures in Table 2 of the 1959 National Income Blue Book will be made in the corresponding table of the White Paper on National Income and Expenditure to be published at the end of March. It is unlikely, however, that the percentage changes quoted in the Question will be appreciably affected by any revisions. As regards the second part of the Question, the hon. Member will not expect me to say more than that I have noted his views.

79. Mr. McKay

asked the Chancellor of the Exchequer what he estimates would be the financial effect on the total revenue if the personal allowance for married men and single men and women were doubled and the Income Tax rate of 6s. 3d. was raised to 6s. 9d. and the rate of 7s. 9d. raised to 8s. 3d. in the £; and whether this would principally benefit the married man with an income of £700, £1,000, £2,000, £5,000 or £10,000.

Sir E. Boyle

The hon. Member's suggestion would cost £600 million in a full year. Of the examples given a married man without children earning £1,000 would get the greatest benefit.

Mr. McKay

asked the Chancellor of the Exchequer how much the reduction of the Income Tax rates in 1956–57 benefited a married man with an income of £600, £800, £1,000, £3,000, £5,000, and £10,000; and what was the reduction in Income Tax for the same income groups due to changes in the rates of Income Tax for the year 1958–59

Sir E. Boyle

The Income Tax rates were not changed in either of the two years mentioned.