§ Mr. RookerTo ask the Chancellor of the Exchequer what is the percentage increase in personal income tax allowances since indexation began; and what is the percentage increase in the retail prices index over the same period.
§ Mr. DorrellThe provisions under which income tax allowances are indexed by reference to movements in the retail prices index unless Parliament determines otherwise have applied to changes in allowance levels from 1977–78. In 1992–93 the personal allowance is 265 per cent. higher than the equivalent allowance in 1977–78 and the retail prices index is forecast to be 197 per cent. higher.