§ 51. Mr. Nicholas Bennett
To ask the Chancellor of the Exchequer what information he has as to the effect of the reduction of income tax rates in the United Kingdom and in other countries on total tax yields from personal taxes.
§ 94. Mr. Bellingham
To ask the Chancellor of the Exchequer what estimate he has of the extent to which a further reduction of the marginal rate of income tax may generate more tax revenue; and if he has any indication of the extra revenue generated to date by his Budget measures.
§ Mr. Norman Lamont
Estimates of the direct revenue costs of the reductions in income tax rates were published in the financial statement and Budget report on Budget day. Notwithstanding those reductions, provisional figures suggest that income tax receipts in the first six months of 1988–89 are 6½ per cent. higher than in the corresponding period in 1987–88 as a result of the growth in employment and earnings. It is not possible to isolate the effects of the Budget measures on these factors; nor is it possible to estimate corresponding effects of any further reductions in tax rates. Experience in other countries supports the view that there are significant benefits from reducing high rates of personal tax.