HC Deb 09 February 1981 vol 998 c258W
Mr. Brotherton

asked the Chancellor of the Exchequer what reduction in the standard rate of income tax would be possible if £620 million were not spent by the Exchequer in the 1981–82 financial year and a further £370 million in the 1982–83 financial year.

Mr. Peter Rees

Tax revenues in future years will depend on the level of incomes, allowances and reliefs in those years. At 1980–81 income and allowance levels, the cost of a reduction of 1p in the basic rate of income tax would be £800 million in a full year.