§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what would be the cost of increasing all personal allowances by the current increase in average earnings of 9.25 per cent.
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§ Mr. LilleyAt 1990–91 levels of income, the direct revenue cost in a full year of increasing all personal allowances by 9.25 per cent. on their 1989–90 levels is estimated to be about £2,240 million. The additional cost of increasing the basic rate limit by 9.25 per cent. is about £430 million in a full year. The costs falling in 1990–91 would be £1,720 million and £250 million respectively. Estimates are based on a projection of the 1987–88 survey of personal incomes and are provisional.