§ Mr. Hunterasked the Chancellor of the Exchequer (1) what would be the immediate revenue cost of abolishing the 60 per cent. tax hand, thus making the maximum rate of tax 50 per cent.;
(2) what would be the immediate revenue cost of abolishing the 60 per cent. and 50 per cent. tax hands, thus making the maximum rate 40 per cent.
§ Mr. Norman Lamont[pursuant to his replies, 6 July 1987, c. 18]: The full year direct revenue costs at 1987–88 levels of income of reducing the maximum income tax rate to (a) 40 per cent. by abolishing the 45 per cent., 50 per cent., 55 per cent., and 60 per cent. rates and (b) 50 per cent. by abolishing the 55 per cent. and 60 per cent. rates are estimated to be about £1,400 million and £450 million, respectively. These estimates make no allowance for possible changes in taxpayers' behaviour.