§ Mr. Michael Spicerasked the Chancellor of the Exchequer what additional revenue could be expected from fiscal drag in each tax year from 1980–81 to 1987–88, assuming a growth rate of 1 per cent. per annum for the first four years and 2 per cent. per annum for the following four years, and also assuming the continuation of existing tax rates combined with the raising of personal income tax allowances by 10 per cent. each year.
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§ Mr. Peter Rees[pursuant to his reply, 28 April 1980, c. 332]: The increases in the yield of income tax will depend on the increases in money incomes in each year, as well as on the changes in tax rates and allowances.