§ Mr. Horamasked the Chancellor of the Exchequer what would be the cost to the Exchequer of abolishing the 25 per cent. income tax rate; and what is the cost of reducing the standard rate by 1p.
§ Mr. Peter ReesAt 1979–80 income levels the full year figures are estimated as follows:
£ million Abolition of the lower rate band 895(yield) Reduction of basic rate by 1p 495(cost) These are alternatives and cannot be taken in combination: abolishing the lower rate band would increase the cost of reducing the basic rate.