§ Mr. Formanasked the Chancellor of the Exchequer what would be the estimated cost to the Exchequer in a full year of changing the income tax system so that there was a starting rate of 25 per cent. on the first £1,000 of taxable income and the rates were then set at 30 per cent., 35 per cent., 40 per cent., 45 per cent. and 50 per cent., respectively, with the rates above 30 per cent. being reached at the threshold of taxable income currently associated with that of the 40 per cent., 45 per cent., 50 per cent., and 55 per cent. rates, respectively.
§ Mr. MooreThe direct revenue cost would be about £1.8 billion in a full year at 1986–87 levels of income, compared with an indexed income tax regime.