§ Dr. McDonaldasked the Chancellor of the Exchequer if he will estimate the cost of introducing a 25p in £1 tax band rate for the first £500, first £750 and first £1,000 of taxable income in 1985–86, in terms of lost revenue to the Exchequer.
§ Mr. Moore[pursuant to his reply, 4 March 1985, c. 426]: The direct revenue costs are estimated to be about £575 million, £850 million, and £1,120 million, respectively, in a full year at 1985–86 levels, compared with the income tax regime resulting from statutory indexation from 1984–85 of allowances, thresholds and bands. The estimates assume that a separate lower rate band would also be available to a married couple against the wife's earned income; and that the threshold for higher rates of tax would be unaffected by the introduction of the lower rate band.