HC Deb 22 March 1978 vol 946 cc619-20W
Mrs. Wise

asked the Chancellor of the Exchequer what would be the aggregate annual gain or loss to the Exchequer if the adjustments in the structure of income tax were adopted as set out by the hon. Member for Coventry, South-West in her Question, Official Report, 24th January, columns 535–6.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 6th March 1978; Vol. 945, c. 524], gave the following information:

The estimated gain to the Exchequer would be of the order of £2,400 million at 1977–78 income levels and at current levels of child benefit, and on the assumption that the earnings of a wife were taxed separately from her husband's.

Mr. Roper

asked the Chancellor of the Exchequer what is the estimated revenue cost in 1978–79 and in a full year, based on the growth in earnings, prices and output in the latest published Treasury forecast, or on other reasonable assumptions, of the following income tax changes from April 1978: (a) raising the upper limit of the basic rate band and the upper limit of each higher rate band by 10 per cent.; and (b) raising the upper limit of the basic rate band and the upper limit of each higher rate band by 10 per cent. combined with a 10 per cent. increase in each of the main personal allowances.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 17th March 1978: Vol. 946, c. 407], gave the following information:

The costs at 1977–78 income levels are about:

£m £m
Full year First year
(a) 120 75
(b) 1,150 920

It is not the practice to give costs for the next financial year, but, as a guide, consistent with the published forecast, the full year costs at 1978–79 income levels might be approximately £50 million greater in (a), and £100 million greater in (b), with the first-year costs increasing in proportion.