§ Mr. Marlowasked the Chancellor of the Exchequer what he estimates would be the cost in 1985–86 of (a) indexing married and single person allowances, (b) increasing married and single personal allowances at twice the rate of inflation, (c) increasing the married man's tax allowance by the rate of inflation, (d) indexing the single person's tax allowance by the rate of inflation and (e) providing a tax allowance to spouses not in receipt of income equal to 10 per cent., 20 per cent., 30 per cent., 50 per cent., 75 per cent. and 100 per cent. of the single person's allowance.
§ Mr. Moore[pursuant to his reply, 21 December 1984, c. 359]: Indexation of the main income tax allowances and higher rate thresholds (by 4.75 per cent.) in 1985–86 would have a direct revenue cost of £860 million in 1985–86 (and £1,115 million in a full year) compared to the position if allowances and thresholds remained at 1984–85 levels. The table shows the direct revenue costs of the specified changes (at forecast 1985–86 levels of income) assuming that all other allowances and thresholds remain at their 1984–85 levels. Costs are shown below against the 1984–85 base and the indexed base. The revenue projections in the autumn statement assume revalorisation of the main direct tax allowances and thresholds (and of specific duties) by 4.75 per cent.
Direct revenue costs £ million Against 1984–85 allowance levels Against 1985–86 indexed base 1985–86 Full year 1985–86 Full year (a) allowances indexed by 4.75 per cent. 770 960 -90 -155 (b) allowances increased by 9.5 per cent. 1,550 1,920 690 805 (c) AM and AAM indexed 440 550 -420 -565 (d) AS, WEIA and AAS indexed 330 410 -530 -705 AM, AAM: ordinary and age allowance for married men.
AS, AAS: ordinary and age allowance for single people.
WEIA: wife's earned income allowance.
(e) The direct revenue costs of increasing the total allowance available to a married couple where the wife has no earned income are estimated to be as follows. All changes are measured on top of indexation (at 1985–86 income levels):
Direct revenue cost Increase in total allowance £ 1985–86 £ million Full year £ million 210 280 350 420 560 680 630 830 1,025 1,050 1,375 1,700 1,580 2,060 2,550 2,100 2,750 3,400
British Aerospace Cable and Wireless Amersham International Britoil Associated British Ports Enterprise Oil ¶Jaguar British Telecom (a) Proportion of shares sold (per cent.)† 51.6 *49.36 100 51 51.5 100 100 50.2 (b) Number of shares sold† 100,000,000 133,285,000 50,000,000 255,410,510 20,600,000 212,000,000 177,880,000 3,012,000,000