HC Deb 18 March 1981 vol 1 cc101-2W
Mr. Kaufman

asked the Chancellor of the Exchequer if he will list in comparable prices the net annual effect in a full year of personal income tax increases or reductions in, respectively, the Budgets of 1978, 1980 and 1981.

Sir Geoffrey Howe

[pursuant to his reply, 16 March 1981]: The information at 1979–80 prices is as follows:

1979–80 £4,570 million
1980–81 £1,450 million
1981–82 +£35 million

I assume that the first year for which information is requested is 1979–80 rather than 1978–79.

The net full year effects, before conversion to 1979–80 prices, are those that appeared in the Financial Statement and Budget Reports for 1979–80 to 1981–82.

There is no specific price index for converting figures of tax effects to a constant price basis, but in order to give a broad indication of these effects in real terms the figures have been calculated using the retail prices index based on 1979–80=100 to convert from current to constant prices. A price increase of 10 per cent. has been assumed in 1981–82 compared with 1980–81.