HC Deb 31 October 2001 vol 373 cc743-4W
Mr. Laws

To ask the Chancellor of the Exchequer (1) what his estimate is of the annual revenue which would be raised by (a) raising the employee national insurance rate by 1 per cent., (b) raising the upper earnings limit of employee national insurance contributions to the starting level for paying the upper rate of income tax and (c) restricting the value of the personal income tax allowance to the basic rate of tax; [9957]

(2) what his estimate is of the yield to the Exchequer from (a) the 10 per cent. rate of income tax, (b) the 20 per cent. rate of income tax, (c) the 22 per cent. rate of income tax, and (d) the 40 per cent. rate of income tax in the last three years; and if he will make a statement. [9958]

Dawn Primarolo

[holding answer 25 October 2001]: The full-year effect of raising the upper earnings limit to the higher rate threshold is estimated to yield £750 million. This estimate was provided by the Government Actuary's Department.

The full-year effect of restricting the personal allowance to the basic rate of income tax is estimated to yield around £3 billion in 2002–03. This estimate is based on the Survey of Personal Incomes.

For the other questions, I refer the hon. Member to "Inland Revenue Statistics", tables 1.6 and 2.5, available in the Library of the House. The latest data on Inland Revenue Statistics can also be accessed on the Inland Revenue website www.inlandrevenue.gov.uk/stats.