§ 46. Mr. Ralph Howell
asked the Chancellor of the Exchequer what would be the loss of revenue if income tax thresholds were raised to a point where married couples with incomes below two-thirds national average wage and single persons with incomes below one third national average wage paid no income tax.
§ Mr. Moore
The cost, at 1984–85 levels of income, is estimated to be about £14.9 billion in a full year compared to indexation of allowances and thresholds by 5.3 per cent. This estimate assumes that age allowances would maintain the same lead in cash terms as they would under indexation. The calculation relates to average earnings of full-time adult male workers and assumes an increase of 6½ per cent. in earnings between 1983–84 and 1984–85.