asked the Chancellor of the Exchequer what would be the cost for a full year at 1977 prices of a reduced rate tax level of 25 per cent. on the first £1,000, £1,500, £2,000, £3,000, £4,000 of taxable income; and what would be the cost in each case of reducing the standard rate of income tax to 30 per cent. on the remainder of the present standard rate band.
, pursuant to his reply [Official Report, 8th November 1977; Vol. 938, c. 78], gave the following information:
national insurance contributions, respectively, and in total, by a single man and by a married man with two children under 11 years, each having average earnings in 1973–74, 1976–77 and 1977–78, on a basis comparable with Written Answer, Official Report, 16th December 1975, column 565.
, pursuant to his reply [Official Report, 8th November 1977; Vol. 938, c. 78], gave the following information:The figures so far as available are as follows:The costs are as indicated in the following table:
| Estimated cost in 1977–78 | ||||
| Width of reduced rate band at 25 per cent. £ | Reduced rate £m. | Basic rate at 30 per cent on balance £m. | ||
| 1,000 | … | … | 1,900 | 900–1,200 |
| 1,500 | … | … | 2,600 | 500–900 |
| 2,000 | … | … | 3,100 | 300–700 |
| 3,000 | … | … | 3,700 | 100–300 |
| 4,000 | … | … | 4,000 | 0–200 |