HC Deb 05 March 1985 vol 74 cc489-90W
Mr. Teddy Taylor

asked the Chancellor of the Exchequer if he will estimate what increases in taxation would be required if one third of the total sum raised in local rates were raised through direct taxation, value-added tax, and excise duties on all items including tobacco, alcohol and petrol, respectively.

Mr. Hayhoe

[pursuant to his reply, 4 March 1985, c. 425]: It is estimated that the changes necessary to raise an additional £4.4 billion (equivalent to one third of local rates revenue at 1984–85 prices) would be of the order of:

  1. (i) an increase of just over 4p in the basic rate of income tax; or
  2. (ii) an increase in the standard rate of VAT from 15 per cent. to 20 per cent; or
  3. (iii) an across-the-board increase of about 35 per cent. in all excise duty rates.

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