§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate for the current tax year and for 1975–76 the revenue forgone by the single personal allowance, and the percentage of this which is at higher rates of tax.
§ Mr. Robert SheldonThe estimate for the current year is about £2,480 million and for 1975–76 about £2,180 million. In each year about 11 per cent. of the total cost represents relief in excess of relief at the basic rate of tax.
§ Mr. Pardoeasked the Chancellor of the Exchequer if he will list for 1976–77 his estimate of the loss in revenue which would occur if the tax allowances for the single person, the married couple, and children were equal to the amount listed in the ordinary scale of supplementary benefit requirements at an annual rate.
§ Mr. Robert SheldonFor nearly all families the tax threshold as proposed for 1976–77 is above the corresponding ordinary scale of supplementary benefit566W level —excluding an allowance for rent and rates —and the cost would be negligible. If however, an allowance for rent and rates is included in the scale of supplementary benefits, the tax thresholds for single and married couples would need to be raised by varying amounts depending on the number of children. For some large families with more than four children the proposed tax thresholds are already higher than the benefit levels operative during 1976–77. Assuming that the conditional and unconditional Budget proposals apply, increases of £160 and £190 in the single and married personal allowances, respectively, would ensure that all tax thresholds regardless of family size were at least as high as the, corresponding supplementary benefit levels. The estimated cost of such increases in 1976–77, leaving the wife's earned income allowance unchanged, would be £1,230 million, in addition to the cost of the Budget proposals.