§ Mr. Harry GreenwayTo ask the Chancellor of the Exchequer what is the anticipated effect on the Exchequer of raising the higher rate of taxation to 50 per cent.; arid if he will make a statement.
§ Mr. Norman LamontThe yield in a full year at 1989–90 levels of income of increasing the higher rate of income tax to 50 per cent. would be about £2½ billion. The estimate includes the consequential effect on the yield of capital gains tax. It is partly based on a projection of the 1986–87 survey of personal incomes and is provisional.