§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer how much his decision not to uprate the personal allowance in 1994–95 will cost(a) 20 per cent. taxpayers and (b) basic-rate taxpayers per year; and how much not uprating the personal allowance and the higher-rate band will cost top-rate taxpayers per year.
§ Mr. DorrellThe additional tax liability for a person aged under 65 in 1994–95 compared with statutory indexation of the personal allowance and basic rate limit are as follows.
Marginal rate of tax Additional tax liability £ Lower 14 Basic 17.50 Higher 103
§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer how much he estimates will be raised by the Treasury in(a) 1994–95, (b) 1995–96 and (c) 1996–97 from the freezing of personal income tax allowances; and how many more people he estimates will have to pay income tax by December 1994 as a result.
§ Mr. DorrellLatest estimates of the revenue yield in each of the three years, compared with statutory indexation, are as follows:
Revenue yield, £ million 1994–95 1995–96 1996–97 Allowances unchanged 430 550 560 In 1994–95,no one will be brought into income tax as a result of the November Budget changes. However, about 180,000 more people will pay tax in 1994–95 compared with statutory indexation of personal allowances.