§ Mr. AllenTo ask the Chancellor of the Exchequer what the cost to the Treasury would be if personal allowances were raised in line with the inflation rate.
§ Mr. Lilley[holding answer 31 January 1990]: At 1990–91 levels of income, the cost of indexing personal allowances is estimated to be about £1,465 million in 1990–91 and £2,040 million in 1991–92. The additional cost of indexing the basic rate limit is £205 million in 1990–91 and £380 million in 1991–92.
Estimates are based on a projection of the 1987–88 survey of personal incomes and are provisional.