HC Deb 29 January 1987 vol 109 cc386-7W
75. Mrs. Roe

asked the Chancellor of the Exchequer what is the current yield of 1 p on the standard rate of income tax.

Mr. Norman Lamont

The direct revenue effect of a Ip change in the basic rate of income tax would be about £1.1 billion in 1987–88 and £1.45 billion in 1988–89 .

Dr. McDonald asked the Chancellor of the Exchequer (1) what would be the cost in the 1987–88 financial year of introducing a reduced rate band of 25p of income tax on (i) the first £750 of taxable income, (ii) the first £1,000 of taxable income and (iii) the first £1,500 of taxable income; and in each case, what would be the impact on the net income of a married man on half average earnings, three quarters average earnings, average earnings, twice average earnings, five times average earnings and 10 times average earnings;

(2) if he will report the number of taxpayers and total income tax due from each range of £1,000 between £2,000 and £12,000 and for the following ranges: £12,000 to £16,000, £16,000 to £20,000, £20,000 to £30,000 and £30,000 plus for the latest year available.

Mr. Norman Lamont

I shall let the hon. Member have a reply as soon as possible.