§ Mr. HuttonTo ask the Chancellor of the Exchequer what is the revenue cost to the Exchequer of the personal allowances in 1993–94, 1994–95, 1995–96 and 1996–97 in constant 1994 prices.
§ Mr. DorrellEstimates for 1993–94 and 1994–95 based on information about individuals on Inland Revenue records are given. These costs exclude the value of personal allowances to some individuals whose income is below the tax threshold. The costs for later years will depend on allowance levels for those years.
Revenue cost of personal allowances1 in a full year at constant 1994–95 prices £ billion 1993–942 33.1 1994–952 31.1 1 This includes the personal allowance, the married couple's allowance and the linked allowances, and the blind person's allowance. 2 Assuming that prices increase by 2 per cent, in 1993–94 and 3.25 per cent, in 1994–95 in line with the illustrative assumptions in the "Financial Statement and Budget Report" 1994–95.