§ Mr. JackTo ask the Chancellor of the Exchequer for a married taxpayer with earned income and no other income of (i) £5,000, (ii) £10,000, (iii) £15,000 and (iv) £20,000 and a single taxpayer with earned income and no other income of(a) £5,000, (b) £10,000 (c) £15,000 and (d) £20,000, how much they would gain each week from the introduction of a 10p starting rate of income tax on the first (1) £1,000, (2) £1,500, (3) £2,000, (4) £2,500 and (5) £3,000 of taxable income to replace the first £2,000 of the current 20p income tax band while leaving all other tax rate bands and allowances unchanged. [1859]
§ Dawn Primarolo[holding answer 2 June 1997]: Based on the right hon. Member's assumptions, the weekly gains from a new lop starting rate of income tax are given in the table. 1997ߝ98 allowances and rates are used.
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Gain per week (£) Width of 10p band Earnings £1,000 £1,500 £2,000 £2,500 £3,000 £5,000 1.84 1.84 1.84 1.84 1.84 £10,000 1.92 2.88 3.85 4.81 5.77 £15,000 1.92 2.88 3.85 4.81 5.77 £20,000 1.92 2.88 3.85 4.81 5.77
§ Mr. JackTo ask the Chancellor of the Exchequer how much reserve would be forgone by the introduction of a starting rate of income tax at lop on the first(a) £1,000, (b) £1,500, (c) £2,000, (d) £2,500 and (e) £3,000 of taxable income to replace its first £1,000, £1,500, £2,000, £2,500, £3,000 respectively, of its current 20p income tax band, while leaving all other tax rate bands and allowances unchanged. [1860]
§ Dawn Primarolo[holding answer 2 June 1997]: The estimated full-year costs, based on the right hon. Member's assumptions and assuming that all other allowances and tax rates in 1997ߝ98 are left unchanged, are given in the table:
New 10p starting rate on first Full year cost at 1997–98 income levels(£ billion) £1,000 2.5 £1,500 3.6 £2,000 4.8 £2,500 5.9 £3,000 6.9
§ Mr. JackTo ask the Chancellor of the Exchequer with a starting rate of income tax at 10p on respectively the first £1,000, £1,500 to £2,000; £2,500, £3,000 of taxable income replacing the first £1,000, £1,500, £2,000, £2,500 and £3,000 of the current 20p income tax band, at what starting point of taxable income the basic rate would have to be set to ensure no overall loss of tax receipts either in the year of assessment for which these changes were made or in either of two following years. [1875]
§ Dawn Primarolo[holding answer 2 June 1997]: Based on the right hon. Member's assumption of no loss of tax revenue in a full year, the basic rate limit would need to be set at the levels given in the table. These assume 1997ߝ98 income levels and that all other allowances and tax rates in 1997ߝ98 are unchanged.
New 10p starting rate on first Value of basic rate limit £1,000 £21,100 £1,500 £19,400 £2,000 £18,000 £2,500 £16,850 £3,000 £15,850 To repeat the same analysis in terms of no overall loss of tax receipts in 1997ߝ98 and the following two years could be provided only at disproportionate cost.
§ Mr. JackTo ask the Chancellor of the Exchequer by how much the basic rate limit would have to be reduced to ensure that with a starting rate of tax of lop on the first(a) £1,000, (b) £1,500, (c) £2,000, (d) £2,500 and (e) £3,000 of taxable income to replace the first £1,000, £1,500, £2,000, £2,500 and £3,000 respectively, of the current 20p income tax band, while leaving all other tax rate bands and allowances unchanged, nobody currently paying tax at the higher rate of 40p would experience any reduction in their aggregate income tax liability. [1858]
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§ Dawn Primarolo[holding answer 2 June 1997]: Based on the right hon. Member's assumptions that the higher rate taxpayers do not gain from a new 10p starting rate, the basic rate limit would be as shown in the table below.
Width of 10p band Reduce basic rate limit to (a)£1,000 £25,512 (b) £1,500 £25,218 (c)£2,000 £24,924 (d)£2,500 £24,629 (e)£3,000 £24,335