HC Deb 23 May 1974 vol 874 cc219-20W
Mr. Kenneth Clarke

asked the Chancellor of the Exchequer by what amount the standard rate of income tax would have to be raised to produce sufficient revenue to pay for that part of expenditure on education at present borne by local authorities.

Dr. Gilbert

The increase required in the basic rate of income tax would be about 4½ percentage points.

Mr. Kenneth Clarke

asked the Chancellor of the Exchequer by what amount the standard rate of income tax would have to be raised to produce sufficient revenue to pay for that part of expenditure on higher and further education at present borne by local authorities.

Dr. Gilbert

The increase required in the basic rate of income tax would be about one percentage point.

Mr. Madden

asked the Chancellor of the Exchequer if he can make an estimate of the cost of transferring the financial responsibility for education from local government to the national Exchequer; and what would be the effect of such a transfer on the standard rate of income tax.

Dr. Gilbert

The expenditure of local authorities on education in 1974–75, net of the Exchequer grant for education, is estimated at £1,350 million at November 1973 prices. To raise additional revenue equal to this amount in 1974–75 would require an increase of about 4½ percentage points in the basic rate of tax.