§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the(a) cost, 185W (b) absolute gains and (c) relative gains by income decile of increasing the amount of income subject to basic rate tax by £1,000; and if he will make a statement. [158073]
§ Dawn PrimaroloThe full-year cost of increasing the income tax basic rate limit by £1,000 in 2001–02 is estimated to be £½ billion. All gainers would be in the top income decile. They would gain £175 on average, which represents a 1 per cent. reduction in their tax liability.
These estimates are based on the survey of personal incomes and consistent with the March 2001 Budget.