§ 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.