§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer if he will list the 85W personal allowances for 1979–80, the levels to which they would be raised to compensate for (a) the increase in the retail price index, (b) the tax and prices index, and the total cost of (a) and (b) for each allowance.
§ Mr. Peter Rees[pursuant to his reply, 24 March 1980, c. 452–53]: The follow-
Allowance Present value Value increased by 17.82 per cent. Values rounded up for administrative purpose Cost Value increased by 15.49 per cent. Cost £ £ £ £m. £ £m. Single person and wife's earned income allowance. 1,165 1,373 1,375 852 1,345 734 Married person 1,815 2,138 2,145 1,142 2,096 975 Additional personal 650 765 770 12 751 10 Age— single person 1,540 1,814 1,820 77 1,779 67 married person 2,455 2,892 2,895 103 2,835 90 The increase between the average of the December 1978 and January 1979 retail prices index and the average of the December 1979 and January 1980 retail prices index is 17.82 per cent. This is the basis of the calculation of the changes required by section 22 FA 1977. The resultant values incorporating the administrative roundings necessary for the operation of the PAYE scheme are those announced in my right hon. and learned Friend's Budget Statement, and the costs shown are consistent with those quoted in table 2 of the Financial Statement and Budget Report.
The increase between the average of the December 1978 and January 1979 tax and price index and the average of the December 1979 and January 1980 tax and price index is 15.49 per cent.