§ Mr. Sproatasked the Chancellor of the Exchequer, further to his answer to the hon. Member for Aberdeen, South, if he will now provide the figures regarding the loss of revenue each year for three years of a 10 per cent. cut, not on the basis of 10p off each rate, but of 10 per cent. off each rate, namely, 3p off the current standard rate of 30 per cent.
§ Mr. Peter ReesThe estimated full-year cost at 1980–81 incomes levels of reducing each rate of income tax by a tenth is £2.6 billion. The new rates would be 27 per cent., 36 per cent., 40.5 per cent., 45 per cent., 49.5 per cent. and 54 per cent. The cost of subsequent reductions cannot be estimated as it would depend on incomes and allowances in later years.