HC Deb 22 March 1978 vol 946 cc620-1W
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) a reduction of 1p in the pound in the basic rate of tax, (b) a reduction of 1p in the pound in the basic rate of tax combined with a 10 per cent. increase in the main personal allowances, and (c) a reduction of 2p in the pound in the basic rate of tax combined with a 10 per cent. increase in 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) … … … … 440 410
(b) … … … 1,450 1,240
(c) … … … … 1,875 1,640

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 £100 million greater in (a), £150 million greater in (b), and £250 million greater in (c), with the first-year costs increasing in proportion.

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 increasing by 10 per cent., from April 1978, (a) the married man's allowance, (b) the single allowance, (c) the wife's earned income allowance, (d) the age allowances, (e) all 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) … … … 250 205
(b) … … … 140 115
(c) … … … 565 465
(d) … … … 75 60
(e) … … … 1,030 845

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 cost at 1978–79 income levels might be approximately £50 million greater for (e), and in proportion for (a) to (d), with the first-year costs increasing in proportion.