§ Mr. MilburnTo ask the Chancellor of the Exchequer if he will estimate the net revenue forgone in each financial year as a result of the reductions in personal income tax for higher rate taxpayers introduced by the Finance Act 1988 in the light of Government receipts since then.
§ Mr. Dorrell[holding answer 22 February 1993]: The table shows the direct revenue costs in a full year compared with reintroduced tax rates of 45, 50, 55 and 60 per cent. The band widths for the tax rate schedule have been calculated by uprating the corresponding parts of the 1987–88 regime by movements in the retail prices index as in the statutory indexation formula. The estimates take account of the introduction of independent taxation from 1990–91 and the restriction of mortgage interest relief to the basic rate from 1991–92.
Latest inflation1 Budget balance2 General government debt3 Long-term bond yield4 Belgium 2.8 -6.7 130.6 7.7 Denmark 1.5 -2.3 72.7 8.7 France 2.0 -2.8 49.1 7.8 Germany5 4.4 -3.2 47.6 6.9 Greece 14.4 -13.4 104.0 n.a. Ireland 2.3 -2.7 96.4 9.9 Italy 4.3 -10.5 105.4 13.0 Luxembourg 2.6 -0.4 5.3 7.7 Netherlands 2.5 -3.5 80.6 6.8 Portugal 8.5 -5.6 66.7 11.3 Spain 5.4 -4.6 46.6 11.5 United Kingdom 1.7 -6.1 43.7 7.9 1 Latest percentage change in consumer prices on year ago. 2 1992 general government financial balance (as a percentage of GDP), European Economy (January/February 1993). 3 1992 gross debt of general government (as a percentage of GDP), estimates taken from European Economy (May 1992). 4 Yield on fixed interest government securities on February 18th 1993, except Ireland (December 1992) and Portugal (November 1992). 5 Inflation and government debt figures are for western Germany. Source: OECD and Eurostat.