HC Deb 16 February 1993 vol 219 c119W
Mr. Burns

To ask the Chancellor of the Exchequer what is his current estimate of the cost to the Exchequer of a reduction of one penny in the basic rate of income tax.

Mr. Dorrell

About £16 billion in 1993–94, and £1.7 billion in 1994–95, if the reduction applied from the beginning of the 1993–94 tax year. The costs include the effect of the reduction in receipts of advance corporation tax, and the consequent effect on receipts of mainstream corporation tax. They are based on the same assumptions as those used in table 5.6 of the "Autumn Statement 1992", Cm. 2096 but have been corrected to allow for an error which applied only to these two figures.