Lord Harris of HighCross asked Her Majesty's Government:
What would be the approximate cost to the Revenue of raising the starting threshold for income tax to (a) the level of average manual earnings; and (b) two-thirds of average manual earnings.
§ The Secretary of State for Trade (Lord Cockfield)If all the main personal allowances—that is, the married man's allowance, single and wife's earned income allowance, and the aged married and single allowances —were increased to the level specified, the approximate costs in a full year at 1982–83 income levels would be:
- (a)Average manual earnings… … £25 billion
- (b)average manual earnings… £17 billion
The average earnings of full-time adult male manual workers in 1982-83 are broadly estimated to be some £140 per week.
The costs given cannot directly be compared with the estimated yield of income tax for 1982-83 as they are on accruals basis while the yield figures are on a a receipts basis.