§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer whether, in the manner of his answer of 18 January,Official Report, columns 473–74, he will estimate the effect of a one-earner, two-child family, of introducing a reduced rate band of 20 per cent. on (a) the first £1,000, (b) the first £1,500, (c) the first £1,750, and (d) the first £2,000 of taxable income; and if he will estimate the full year costs, at 1988–89 incomes, of each measure.
§ Mr. Norman Lamont(holding answer 19 February 1988] The table shows the gain from each of the reduced 631W rate bands for a married man whose wife does not work and the full year costs at 1988–89 income levels of each measure. The calculation of the gain assumes that the taxpayer has sufficient income to receive the full benefit from each reduced rate band. The cost of each reduced rate band has been calculated by comparison with the 1987–88 income tax regime indexed to 1988–89 levels according to the statutory formula. It has been assumed that separate reduced rate bands are available to both husband and wife where the wife has earnings.
Width of 20 per cent. reduced rate band Benefit to a one-earner couple Full year cost at 1988–89 levels of income £ per year £ per year £ million 1,000 70.00 1,650 1,500 105.00 2,400 1,750 122.50 2,750 2,000 140.00 3,100