§ Dr. McDonaldasked the Chancellor of the Exchequer if he will estimate the numbers of people who would be taken out of taxation by a 10 per cent. increase in personal allowances for 1983–84.
§ Mr. Ridley[pursuant to his reply, 14 February 1983, c. 5]: Estimates of the effects of allowance changes on taxpayer numbers for 1983–84 are approximate and liable to revision. However, it is currently estimated that in 1983–84 about 850,000 fewer people would pay tax if allowances were increased by 10 per cent. of their 1982–83 levels, compared to the position if allowances were not so increased. This figure assumes that the 10 per cent. increase were on top of statutorily indexed allowance levels for 1983–84.
§ Dr. McDonaldasked the Chancellor of the Exchequer (1) if he will estimate the costs of a 2 per cent. reduction in the standard rate of income tax for 1983–84;
(2) if he will estimate the costs of a 10 per cent. increase in personal allowances for 1983–84.
§ Mr. Ridley[pursuant to his reply, 14 February 1983, c. 5–6]: The information is in the following table. Both 346W changes and costs are taken to be on top of statutory indexation of allowances and thresholds from their levels in 1982–83. Costs are at estimated 1983–84 income levels.
£ million Revenue costs in 1983–84 Full year 2p reduction in basic rate* 1,700 1,930 10 per cent. increase in personal allowances (not including higher rate and the investment income surcharge thresholds) 1,290 1,570 * Including the effect on receipts of advance corporation tax and on consequent liability to mainstream corporation tax.