§ Mr. BattleTo ask the Chancellor of the Exchequer what would be the projected additional yield in tax revenue from(a) income tax, (b) VAT and (c) corporation tax over five years consequentially of an 526W annual compounded economic growth rate of 2.5 per cent. assuming that tax rates remain as they are and personal allowances are increased in line with the previous year's inflation.
§ Mr. MaudeTax receipts would be expected to rise broadly in line with growth in the economy, perhaps a little faster because of a contribution from real fiscal drag. However, estimates of the effects of economic growth on individual taxes will depend, among other things, on the composition of that growth between the different sectors of the economy, and could be made only at disproportionate cost. Rising tax receipts, under resumed growth in the economy, are an element of the Government's medium-term fiscal projections, published in the "Financial Statement and Budget Report". Projections of tax revenues are shown in FSBR table 2A.4.