§ Ms HarmanTo ask the Chancellor of the Exchequer how many individuals he expects to become liable for income tax as a result of his proposal to freeze allowances in 1993–94; how many individuals he expects to cease to be liable for income tax at the standard rate as a result of his proposal to widen the lower rate band of income tax by £500 in 1993–94; and how many individuals he expects to become liable for the higher rate of income tax as a result of his proposal to freeze the basic rate limit in 1993–94.
§ Mr. DorrellAbout 300,000 more people will pay tax in 1993–94 under Budget proposals compared with statutory indexation of personal allowances. Increasing the lower rate band by £500 brings about 700,000 more taxpayers into the lower rate than if the lower rate limit had been indexed. Not changing the basic rate limit increases the number of higher rate taxpayers by 100,000 compared with indexation.