HC Deb 05 March 1998 vol 307 cc720-1W
Mr. Denzil Davies

To ask the Chancellor of the Exchequer what is his estimate of the cost in a full year of widening the 23 per cent. income tax band to £30,000, assuming no changes in rates or allowances. [32401]

Dawn Primarolo

The full year cost for 1998-99 would be £2.2 billion.

Mr. Fallon

To ask the Chancellor of the Exchequer if he will estimate the cash value, in pounds per month, of converting(a) £1,000, (b) £2,000, (c) £3,000 and (d) £4,100 of the 20 per cent. income tax band to 10 per cent. for (i) a single person and (ii) a married couple in each decile of the income distribution. [26204]

Dawn Primarolo

Information for 1997–98 is shown in the tables.

Gain from of a 10p band—single people, £ per month
Width of band
By income deciles of taxpayers £1,000 £2,000 £3,000 £4,100
Top 10% 8.33 16.67 25.00 34.17
10–20% 8.33 16.67 25.00 34.17
20–30% 8.33 16.67 25.00 34.17
30–40% 8.33 16.67 25.00 34.17
40–50% 8.33 16.67 25.00 34.17
50–60% 8.33 16.67 25.00 34.17
60–70% 8.33 16.67 25.00 34.14
70–80% 8.33 16.65 24.75 31.80
80–90% 8.24 15.34 19.55 20.31
Bottom 10% 5.46 7.04 7.05 7.05

Gain from of a 10p band—married men, £ per month1
Width of band
By income deciles of taxpayers £1,000 £2,000 £3,000 £4,100
Top 10% 8.33 16.67 25.00 34.17
10–20% 8.33 16.67 25.00 34.17
20–30% 8.33 16.67 25.00 34.17
30–40% 8.33 16.67 25.00 34.17
40–50% 8.33 16.67 25.00 34.17
50–60% 8.33 16.67 25.00 34.17
60–70% 8.33 16.67 25.00 33.92
70–80% 7.98 14.91 20.77 25.58
80–90% 7.68 14.41 18.85 19.93
Bottom 10% 5.13 5.77 5.77 5.77
1 Figures have been given for married men, estimates for married couples are not readily available.

Mr. Fallon

To ask the Chancellor of the Exchequer if he will estimate the cost of converting(a) £1,000, (b) £2,000, (c) £3,000 and (d) £4,100 of the 20 per cent. income tax band to 10 per cent. and, in each case, the proportion of the cash gains made by each income decile. [26203]

Dawn Primarolo

Information for 1997–98 is shown in the table.

Width of band
£1,000 £2,000 £3,000 £4,100
Total cost (£ billion) 2.5 4.9 7.1 9.3
Percentage of gains for income deciles of taxpayers1:
Top 10% 10.4 10.7 11.1 11.5
10–20% 10.4 10.7 11.1 11.5
20–30% 10.4 10.7 11.1 11.5
30–40% 10.4 10.7 11.1 11.5
40–50% 10.4 10.7 11.1 11.5
50–60% 10.4 10.7 11.1 11.5
60.70% 10.4 10.7 11.1 11.5
70–80% 10.3 10.4 10.5 10.2
80–90% 10.2 9.9 8.7 6.9
Bottom 10% 6.9 4.6 3.2 2.4
1 These may not add up due to rounding.