§ Mr. Lawsonasked the Chancellor of the Exchequer if he will publish a revised version of his written answer to the hon. Member for Hitchin (Mr. Stewart), Official Report, 7 February, c. 211–12, concerning income tax, on the assumption (a) that the lower rate band is abolished and (b) that the higher rates apply above a threshold equivalent on real value to the April 1973 threshold.
§ Mr. Robert Sheldon, pursuant to his reply, [Official Report 21 February, Vol. 963, c. 203] stated:
On these assumptions, the information would become:
The cost of introducing all three changes simultaneously would become about £2,800 million.
Cost £ million Reduce basic rate to 30 per cent. and abolish lower rate 350 Restore main personal allowances to real equivalent of 1973–74 levels 1,950 Restore higher rate tax threshold and bands to real equivalent of 1973–74 levels 550 The figures are the same as those in the reply to the hon. Member for Hitchin (Mr. Stewart)—[Official Report, 7 February; Vol. 961, c. 211–12]—except for the inclusion of the yield from abolishing the lower rate in the first item and the substitution of the real equivalent value (£11,086) of the 1973–74 higher rate threshold in the third item.