§ Mr. Ridleyasked the Chancellor of the Exchequer if he will make a statement about the termination of the European Monetary Agreement.
§ Mr. NottThe European Monetary Agreement, which came into force at the end of 1958, was designed to provide a framework for monetary co-operation in Europe during the period of transition to full convertibility of currencies. It had outlived its usefulness and was terminated by agreement on 31st December 1972. The European Fund has been liquidated.
346Wthe figures for the present tax system are as follows:
Band of taxable income £ Full year cost £ million Proportion attributable to those with income less than £2,000* Per cent 200 … … 545 57 250 … … 660 56 300 … … 770 55 400 … … 970 53 * Counting married couples as one unit.
§ Mr. Sheldonasked the Chancellor of the Exchequer what estimate he has made of the amount of revenue to be raised in income tax in the bands £3,000 to £3,500, £3,500 to £4,000, £4,000 to £4,500 and £4,500 to £5,000; and what these amounts would be if the income tax rate were to be increased by 5 per cent. or 10 per cent. or reduced by 5 per cent.
§ Mr. Nottpursuant to his reply, OFFICIAL REPORT 29th January, Vol. 849, c. 315, provided the following information:
On the basis of a 30 per cent unified rate and 1972–73 levels of income, the figures are:
An agreement among central banks, to be reviewed after three years, provides for the continuation of the system of mutual exchange guarantees which was a feature of the EMA. These guarantees apply to very limited amounts of currencies of participating countries held by central banks as working balances.