§ Mr. Hooley
asked the Chancellor of the Exchequer how many taxpayers will be taken out of liability to pay income tax by the new allowances announced in his Budget Statement; and how many will fall back within liability to income tax over the current financial year assuming average pay settlements in the next pay round of (a) 10 per cent., (b) 15 per cent. and (c) 20 per cent.
§ Mr. Peter Rees
, pursuant to his reply [Official Report, 27 June 1979], gave the following answer:
About 1,300,000 taxpayers, counting earning wives separately, who would have been liable to tax in 1979–80 on the allowances of 1978–79 will not be liable as a result of the Budget changes. This figure is based on official forecasts of movements in pay and other elements of income during the year. On these forecasts none of the 1,300,000 will be liable to tax over the year as a whole.