§ Mr. John Grantasked the Chancellor of the Exchequer (1) what is the overall cost of running the tax and social security systems in real terms in each of the financial years from 1978–79 and the estimated cost for 1982–83;
(2) what have been the reasons for the increased overall costs of running the tax and social security systems in real terms since 1978–79.
§ Mr. HayhoeAdjusting the cash figures for general inflation, as measured by the GDP deflator at market prices, gives the following cost terms figures on a base year of 1981–82. For 1982–83 it has been assumed that the GDP deflator increases by 7.5 per cent.
of 5 per cent. to a maximum of 65 per cent., on the assumption that all women who would benefit by separate assessment would claim.
§ Mr. WakehamAs I told the hon. Member in my reply of 25 January, the cost of the wife's earned income allowance in a full year at 1983–84 income levels, assuming statutorily indexed levels of allowances, is £2.9 billion. On the same basis, the cost of the wife's earnings election is estimatesd at £130 million. The hon. Member did not specify a level for the single and wife's earned income allowance under his alternative tax system, but I assume he had in mind the value of £1,800 he has mentioned in related questions. If this is the case, the cost in a full year at 1983–84 income levels would be £3.1 billion for the wife's earned income allowance and £150 million for the wife's earnings election.