§ Mr. EdwardsTo ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer in the financial year 2001–02 of(a) introducing a 50 per cent. rate of income tax for taxable income over £100,000 per year, (b) extending the 10 per cent. income tax band to (i) £7,272 and (ii) £10,025 per year of gross income, (c) fully covering the cost of child care for those in receipt of working families tax credit and (d) paid parental leave for all in receipt of working families tax credit, assuming full income replacement. [140209]
§ Dawn PrimaroloThe full-year effects in 2001–02 of making the changes are set out in the table.
Costs(—): Yields (†)—£ billion 2001–02 (a) 50 per cent. rate for income tax for income over £100,0001 †3.2 (bi) Increase starting rate limit to £2,7371.2 —3.3 Increase starting rate limit to £5,4901.3 —10.3 1Estimates are based on the Survey of Personal Incomes and are consistent with the November 2000 pre-Budget report 2£2,737 is the difference between £7,272 and the non-aged personal allowance of £4,535 3£5,490 is the difference between £10,025 and the non-aged personal allowance of £4,535 Reliable estimates of the cost of fully covering the cost of child care for those in recept of the Working Families Tax Credit cannot be made because of the uncertain behavioural effects that would result from such a change.
Without further details I am unable to provide an answer to the final part of my hon. Friend's question.