HC Deb 26 March 1979 vol 965 c49W
Mr. Ian Stewart

asked the Chancellor of the Exchequer by how much the £750 reduced rate income tax band would have to be widened to allow for the past year's inflation; and what the revenue cost would be.

Mr. Robert Sheldon

The increase in prices in 1978 was 8.9 per cent. This is measured by the increase in the general retail prices index between December 1977/January 1978 and December 1978/January 1979. The corresponding increase in the width of the lower rate band would be £66, and the cost of this increase would be £110 million in a full year at 1978–79 income levels.