HC Deb 30 July 1974 vol 878 cc151-2W
Mr. David Steel

asked the Chancellor of the Exchequer if one reduced band of income tax were introduced at 20 per cent. for the first £400 of taxable income, what would be the total cost and at what level of income would the higher tax rates have to start in order to balance the total cost.

Dr. Gilbert

The estimated cost for 1974–75 is about £1,200 million. Assuming the width of each higher rate band was as proposed for 1974–75, it would be necessary for higher rates to start at a

Dr. Gilbert

Information is available only for financial years. The latest estimates are as follows:

taxable income of about £1,000 in order to recover the cost.