HC Deb 20 December 1988 vol 144 c170W
Mr. Burns

To ask the Chancellor of the Exchequer (1) by how much tax thresholds have increased in real terms between 1979–80 and 1988–89;

(2) how many people have been removed from paying income tax as a result of the raising of tax thresholds between 1979–80 and 1988–89;

(3) how much extra tax would (a) a single person and (b) a married couple with two children who have been taken out of paying income tax by the raising of thresholds be paying if tax thresholds had been increased in line with inflation.

Mr. Norman Lamont

[holding answer 19 December 1988]: Between 1979–80 and 1988–89, the single person's income tax allowance increased by 22 per cent. in real terms and the married man's allowance by 23 per cent. in real terms.

It is estimated that about 670,000 fewer single people and married couples are liable to income tax in 1988–89 compared with those who would be liable if 1979–80 allowances had been indexed for inflation to 1988–89 according to the statutory indexation provisions. With the basic rate at 25p, a single person has gained up to £1.35 per week and a married man up to £2.26 per week from the increases in allowances compared with indexation.