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Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will publish in the Official Report the statistical basis of his Written Answer to the hon. Member for Norfolk, North, on changes in tax and VAT, Official Report, 2nd February, column 185.
Mr. Robert Sheldon
Estimates of the changes in revenue resulting from income tax proposals are based on individual tax calculations for a representative sample of taxpayers grossed up to simulate the effect on the whole taxpaying population. The required increase in VAT was based on an estimate of consumers' expenditure, adjusted for volume changes. I regret that a misprint occurred in the earlier reply given to the hon. Member on 2nd February. The figure of £1,000 million in the sixth line should read £7,000 million.