§ Mr. Denzil Davies
To ask the Chancellor of the Exchequer what is his estimate of the total cost in a full year of(a) an increase in the lower rate band of income tax to £3,500, (b) an increase in the basic rate band of income tax to £30,000 and (c) a reduction in the basic rate of income tax to 24 per cent.
§ Sir George Young
Estimates are as follows:
1995–961 Full year revenue cost £ million (a) Increase in the lower rate band from £3,200 to £3,500 310 (b) Increase in the basic rate limit from £24,300 to £30,000 1,670 (c) Reduction in the basic rate of income tax to 24 per cent. 1,900 1 The figures include consequential effects on the yield of capital gains tax. Each option has been costed separately; the combined cost of the three options may be different from the sum of the figures for the individual options.