§ Mr. Fieldasked the Chancellor of the Exchequer how much of the total revenue lost through the cuts in direct taxation announced in the Budget are attributable to (a) the increases in personal allowances, excluding the age allowance, announced in the caretaker Finance Act, (b) the increases in personal allowances, excluding the age allowance, over and above those announced in the caretaker Finance Act, (c) the reduction in the standard 685W rate of income tax, (d) the reduction in the top rate of income tax, (e) the raising of the point at which higher rate tax starts to be paid and the stretching out of the higher rate bands, (f) the increase in the threshold for the investment income surcharge, (g) the increase in the age allowance income limit and (h) the increase in the age allowance announced in the caretaker Finance Act and the rest of the increase in the age allowance.
§ Mr. Peter ReesThe costs depend on the order in which the changes are assumed to take effect. Adopting an order consistent with Table 16 of the Financial Statement and Budget Report for figures are as follows:
Full year cost of: £ million Increase in personal allowances (excluding age allowances) in Finance Act 1979 936 Further proposed increases in personal allowances (excluding age allowances) 922 Proposed increase in age allowances (including those in Finance Act Act 1979) 162 Proposed increase in age allowance income limit 48 Reduction in basic rate to 30 per cent. 1,395 Reduction in highest rates to 60 per cent. 345 Changes in higher rate threshold and bands 517 Increase in investment income surcharge thresholds 201 TOTAL 4,526