§ 44. Mr. GrocottTo ask the Chancellor of the Exchequer if he will publish any information his Department possesses on the incentive effects of the reduction in tax rates from 60 per cent. to 40 per cent. in his last Budget.
§ Mr. Norman LamontEstimates of the direct revenue costs of the reductions in income tax rates were published in the Financial Statement and Budget Report on Budget day. Notwithstanding those reductions, provisional figures suggest that income tax receipts in the first seven months of 1988–89 are 5 per cent. higher than in the corresponding period in 1987–88 as a result of the growth in employment and earnings. It is not possible to isolate the effects of the Budget measures on these factors.