§ Mr. Tim SmithTo ask the Chancellor of the Exchequer what proportion of gross domestic product(a) was in 1978–79 and (b) he estimates will be in 1997–98 accounted for by income tax. [19891]
§ Mr. JackThe ratio of income tax receipts to GDP was 11 per cent. in 1978–79. The Budget forecast of the corresponding ratio in 1997–98 is 9 per cent. Over this period, the basic rate of income tax will have fallen from 33 per cent. to 23 per cent.—the lowest headline rate for nearly 60 years.