§ Mr. Wigley
asked the Chancellor of the Exchequer what would be the threshold for income tax in 1983–84 for 149W (a) a single man and (b) a married man with two children if those thresholds were to represent the same proportion of the average manual earnings as they did in the financial year 1947–48; and what would be the loss of income to the Exchequer if the tax thresholds were set at this level for 1983–84.
§ Mr. Ridley
The hon. Member asks for comparisons with a period when the tax threshold included child tax allowances. These have now been replaced by non-taxable child benefit. If thresholds in 1983–84 were set at the same proportion of average manual earnings as in 1947–48, they would be (*): (a) single person £3,205; (b) married man with two children £8,215. To estimate the cost of such a change, it would be necessary to know whether the hon. Member envisages the reintroduction of child tax allowances and, if so, how large they would be and whether child benefit would continue to be paid and at what level.
(*) assuming that earnings increase by 6½ per cent. between 1982–83 and 1983–84.