HC Deb 13 January 1977 vol 923 cc568-70W
21. Mr. Rippon

asked the Chancellor of the Exchequer what would be the cost to the Exchequer in the current financial year if the maximum rate of income tax on; (a) earned income and (b) unearned income were reduced to: (i) 55 pence and (ii) 50 pence.

Mr. Robert Sheldon

Assuming that the investment income surcharge is retained at its present level in addition to the general income tax rate, the approximate costs would be as follows: for earned income £165 million and £235 million, and for unearned income £135 million and £180 million respectively.

Mr. Clemitson

asked the Chancellor of the Exchequer how many people paid income tax at a rate in excess of 60 per cent. in the last financial year.

Mr. Robert Sheldon

It is estimated that for 1975–76 the number of taxpayers liable to income tax at rates in excess of 60 per cent.—excluding the investment income surcharge—was about 180,000, counting married couples as one.

Mr. Clemitson

asked the Chancellor of the Exchequer what was the total amount of income tax paid at rates in excess of 60 per cent. in the last financial year.

Mr. Robert Sheldon

It is estimated that for 1975–76 the amount of income tax paid at rates in excess of 60 per cent. —excluding the investment income surcharge—was £950 million.

Percentage of total reduction
Expenditure on Goods and Services
Programme 1977–78 1978–79
Defence 100 100
Overseas aid and other overseas services 6 9
Agriculture, fisheries, food and forestry 2
Trade, industry and employment 4 3
Nationalised industries
Roads and transport 100 100
Housing * 64
Other environmental services 100 100
Law order and protective services 100 100
Education and libraries, science and arts 71 80
Health and personal social services 100 100
Common services 100 100
Northern Ireland 100 100
* There is a small increase in housing expenditure in 1977–78.

Mr. David Howell

asked the Chancellor of the Exchequer if he will publish a breakdown of the reductions in public expenditure, on each programme, announced on 15th December into current and capital expenditure, and into

£ million at 1976 survey prices
Programme 1977–78 1978–79
Defence:
Current expenditure 100 200
Capital expenditure
Goods and services 100 200
Transfer payments
Overseas aid and other overseas services:
Current expenditure 31 32
Capital expenditure 19 18
Goods and services
Transfer payments 50 50

Mr. Rippon

asked the Chancellor of the Exchequer what would be the cost to the Exchequer in the current financial year if: (a) the income tax threshold were raised to £500 and (b) the starting rate of tax was lowered to 30 per cent.

Mr. Robert Sheldon

I shall let the right hon. and learned Member have a reply as soon as possible.