asked the Chancellor of the Exchequer what would be the cost to the Exchequer of abolishing the 25 per cent. income tax rate; and what is the cost of reducing the standard rate by 1p.

At 1979–80 income levels the full year figures are estimated as follows:

	£ million
Abolition of the lower rate band	895(yield)
Reduction of basic rate by 1p	495(cost)

These are alternatives and cannot be taken in combination: abolishing the lower rate band would increase the cost of reducing the basic rate.