§ Mr. DewarTo ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) of 11 January,Official Report, column 546, if he will give similar information for an increase in the reduced rate band of income tax.
§ Mr. DorrellAt 1993–94 levels of income and assuming indexation of allowances and thresholds, the full year cost of a 1p cut in the basic rate of tax is about £1.5 billion. This is equivalent to the cost of increasing the lower rate band width to £3,700. Under such a regime, a married man paying tax at least at the basic rate would be £1.54 per week better off when compared with indexation.
§ Mr. DewarTo ask the Chancellor of the Exchequer how many families with children are estimated to have taxable income below the income tax threshold; and what proportion this represents of all families with children.
§ Mr. DorrellIn 1992–93 it is estimated that 1.6 million single parents and married couples with children have no income tax liability. These represent just over a fifth of all families with children.