HC Deb 19 April 1988 vol 131 c424W
Mr. Sayeed

To ask the Chancellor of the Exchequer what is his estimate of the cost of introducing a system of tax credits on the basis of the personal income tax threshold and rates proposed for 1988–89 and of the new social security system, assuming that no person in receipt of benefit would be made worse off; and if he will give the estimated cost for each of the next five years assuming that(a) the rate of inflation averages 4 per cent. per annum, (b) the lowest rate of income tax is reduced to 20 per cent., (c) tax thresholds rise at twice the amount needed to keep pace with inflation, and (d) benefits are increased in line with inflation.

Mr. Norman Lamont

[holding answer 12 April 1988]: It is not possible to estimate the cost since my hon. Friend has not provided sufficient information about the types of individual who would be covered by the tax credit scheme or about the level of tax credits which would be payable.

Forward to