§ Mr. Lubbockasked the Chancellor of the Exchequer if he will estimate the effect on the revenue from Income Tax and Surtax of treating family allowances as unearned income in 1967–68.
§ Mr. MacDermotThe yield of tax would be increased by about £10 million in a full year.
§ Mr. Whitakerasked the Chancellor of the Exchequer what is the estimated total increased cost of Income Tax and Surtax relief for children today compared with 1957; and what is the equivalent figure for the cost of family allowances.
§ Mr. MacDermotIt is estimated that if there had been no tax child allowances the extra tax charged for 1957–58 would have been about £230 million and for 1967–68 would be about £630 million, an increase of about £400 million. The estimated gross costs of family allowances for the whole of the United Kingdom are £128 million for 1957–58 and £160 million for 1967–68, an increase of £32 million.