HC Deb 16 November 1977 vol 939 cc270-1W
Mr. Newton

asked the Chancellor of the Exchequer if he will state the estimated 1977–78 revenue costs of (a) the single, (b) the married personal allowances, (c) the age single, and (d) age married allowances, together with the wife's earned income allowance.

Mr. Robert Sheldon

The estimated costs including the changes in personal allowances recently proposed are approximately as follows:

£ million
a. Single Personal allowance 3,090
b. Married Personal allowance 6,120
c. Age allowance—single 90
d. Age allowance—married. 130
e. Wife's earned income allowance 1,670

These figures are the estimates of the costs of withdrawing the allowances singly. They should not, therefore, be totalled.

Mrs. Chalker

asked the Chancellor of the Exchequer if he will publish a table showing the estimated total net cost, in the last financial year and in the current financial year of (a) single person's tax allowances, (b) married couple's tax allowances, (c) child tax allowances (for 1976–77 net of yield from tax and claw-back on family allowance and child interim benefit), and (d) family allowances, child interim benefit and child benefit.

Mr. Robert Sheldon

, pursuant to his reply [Official Report, 7th November 1977; Vol. 938, c. 36–37], gave the following information

The estimated costs are as follows:

1976–77 1977–78
£ million £ million
a.—Single persons' allowances. 2,565 3,180
b.—Married couples' allowances 4,920 6,250
c.—Child tax allowances 1,220 890
d.—Family allowance, child interim benefit and child benefit 570 930

The figures at a, b and c are the estimates of the costs of withdrawing allowances singly. They should not, therefore, be totalled.

The yield of tax from the family allowance, including "clawback", has been deducted from line c rather than from line d.

The figures do not include any estimate for the cost of wife's earned income allowance. They take account of the recently proposed changes in personal allowances.