§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will give for the year 1988 (i) the projected tax revenue forgone as a result of the abolition of each of the(a) 60 per cent., (b) 55 per cent., (c) 50 per cent. and (d) 45 per cent. marginal rates of tax assuming indexation of personal allowances and tax bands to inflation only, (ii) the projected reduction in income tax liability of each of the groups of taxpayers in those tax bands following the changes to taxation announced in the budget and (iii) the number of tax units that would have fallen into each category.
§ Mr. Norman Lamont[holding answer 18 April 1988]The information is in the tables.
Direct revenue costs in a full year of successively abolishing the higher tax rates above 40p at 1988–89 levels and tax units1
benefiting compared with 1987–88 tax regime indexed to 1988–89
Higher tax rate abolished Direct revenue cost £ million Number of tax units1'000s 60p 770 180 55p 580 290 50p 420 540 45p 320 930 All rates above 40p 2,090 930 1 Married couples and single people.
Direct revenue costs in a full year of changes in income tax allowances, thresholds, and rates in 1988 Budget at 1988–89 income
levels and tax units' benefiting compared with 1987–88 tax regime
indexed to 1988–89 by taxpayers marginal rate of tax
Marginal rate of tax under 1987–88 indexed tax regime Direct revenue cost £ million Number of tax units1'000s 60p 1,810 180 55p 240 110 50p 300 250 45p 260 390 All rates above 40p 2,610 930 1 Married couples and single people.