§ Mr. Wrigglesworthasked the Chancellor of the Exchequer (1) what is his estimate of the effect of a 10 per cent. increase in personal tax allowances on the net weekly income of single people, married couples and married couples with two children in 1986–87 (on the basis of the latest forecast under the Industry Act 1975) for those on 50 per cent., 75 per cent., 100 per cent., 150 per cent., 200 per cent. and 500 per cent of average earnings;
(2) what is his estimate of the effect of a 2p cut in the basic rate of income tax on the net weekly income of single people, married couples and married couples with two children in 1986–87 (on the basis of the latest forecast under the Industry Act 1975) for those on 50 per cent., 75 per cent., 100 per cent., 150 per cent., 200 per cent. and 500 per cent of national average earnings.
§ Mr. BrookeNo. The flat rate scheme for farmers provided by article 25 of the sixth Council directive is not appropriate or necessary in the United Kingdom. Unlike most other member states, the United Kingdom zero-rates agricultural products and much associated expenditure such as animal feeding stuffs and seeds. For other purchases, where appropriate, farmers are able to recover in full the VAT incurred. The United Kingdom VAT registration threshold of £19,500, which is one of the 185W highest in the Community, already relieves small farmers if they so wish from the requirement to be registered and complete VAT returns.