Income Tax

HC Deb 26 January 1989 vol 145 cc685-6W

41. Mr. Hardy

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of a reduction in the rate of income tax of 1p.

Mr. Norman Lamont

The direct revenue cost, at 1989–90 income levels, of reducing the basic rate of income tax by one penny is estimated to be £1.4 billion in 1989–90 and £1.7 billion in 1990–91.