HC Deb 18 October 1993 vol 230 cc13-4W
Sir Ralph Howell

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of raising the income tax threshold to £100 per week for each person liable to pay income tax.

Mr. Dorrell

Compared with statutory indexation of allowances and thresholds by 1.8 per cent, the estimated full year cost of raising the personal allowance to £5,200 at 1994–95 income levels would be about £10 billion.

Sir Ralph Howell

To ask the Chancellor of the Exchequer how many people had incomes of less than £100 per week at the latest date for which figures are available; how many of these paid income tax; and what proportion of the national average wage is represented by £100 per week.

Mr. Dorrell

The latest estimates for 1993–94 are that about 23.2 million people aged over 16 have incomes below £100 per week, of whom about 2.5 million are taxpayers. The sum of £100 is about 28 per cent. of average earnings for full-time adult males.