§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the full-year cost of reducing the income tax rate on the existing 20 per cent. band to(a) 15 per cent., and (b) 10 per cent. [806]
§ Mr. JackThe estimated full-year cost at 1997–98 income levels of reducing the income tax rate on the existing 20 per cent. band to 15 per cent. is about254W £4.5 billion and to 10 per cent. is about £9 billion. The estimates assume that the income tax rate on savings and dividend income is reduced to 15 and 10 per cent. and that the estimates take account of the effects of the change on receipts of advanced corporation tax and on consequential liability to mainstream corporation tax.
§ Mr. BruceTo ask the Chancellor of the Exchequer what is his estimate of the full year cost per person of raising the standard rate of income tax by 1p in the pound for(a) each adult in the United Kingdom and (b) each income tax payer in the United Kingdom. [813]
§ Mr. JackThe average tax increase at 1996–97 income levels of increasing the basic rate of income tax by 1p is about £35 for each adult—aged 18 and over—and about £63 for every income tax payer in the United Kingdom.