Income Tax (Hansard, 2 February 1977)

§ Mr. David Mitchell
asked the Chancellor of the Exchequer what is the latest estimated current yield of income tax for the fiscal year 1976–77 and at unchanged rates for 1977–78.

§ Mr. Robert Sheldon
The estimated yield of income tax in 1976–77 is £17,045 million, as given in the 1976–77 Financial Statement and Budget Report. The forecast
186W
of this kind is subject to a greater margin of error than is usual.

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer what would be the cost to the Exchequer, in the current financial year, if tax rates were reduced by 2½ per cent. for each child supported by the individual taxpayers.

§ Mr. Robert Sheldon
To reduce income tax liability by 2½ per cent. for each dependent child would cost about £900 million for 1976–77.

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will compare the total net weekly value of family allowance/child benefit and child tax allowances, after tax and clawback where applicable, and at current and constant prices, for a one-child and a two-child family in 1939, 1946, 1976 and estimates for 1977, assuming total earnings to be 50 per cent. 100 per cent., 150 per cent. 200 per cent. and 300 per cent. of average male manual earnings in each case.

§ Mr. Robert Sheldon
No published estimate of average earnings for 1977 is yet available. Assuming that the children are not over 11 years of age, the remaining figures are as follows:
cast for 1977–78 will be published in the next Financial Statement.