HC Deb 28 February 1991 vol 186 cc615-6W
Mr. Battle

To ask the Chancellor of the Exchequer what would be the cost in 1991–92 and in a full year, assuming full indexation of tax allowances and bands, of introducing a lower basic rate of income tax of 15 per cent. on(a) the first £1,500, (b) the first £2,500 and (c) the first £5,000 of taxable income; and how much the current basic rate of income tax of 25 per cent. would have to increase to ensure that there was no net loss to the Exchequer.

Mr. Maude

The direct revenue costs in a full year at 1991–92 income levels are estimated to be(a) £3.7 billion, (b) £5.9 billion and (c) £10.5 billion.

Increases in the basic rate of income tax to 27 per cent., 29 per cent. and 35 per cent., respectively, would have approximately offsetting direct revenue yields.

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will list the number of people paying tax in each year since 1978–79.

Mr. Maude

[holding answer 25 February 1991]: Information is in table 1.5 of "Inland Revenue Statistics 1990." More recent estimates for the latest years are:

Numbers of individuals paying income tax
Year Thousands
1988–89 25,100
1989–901 25,800
1990–911 26,500

1 Provisional.