§ 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.