§ Mr. Ripponasked 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,pursuant to his reply [Official Report, 13th January 1977; Vol. 923, c. 569], gave the following information:
The cost for 1976–77 of raising by £500 the income tax allowances for single persons, earning wives, married persons and the aged and at the same time reducing the basic rate from 35 per cent, to 30 per cent. would be about £5,900 million in a full year.