Skip to main content

Fiscal Drag (Additional Revenue)

Volume 983: debated on Tuesday 29 April 1980

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what additional revenue could be expected from fiscal drag in each tax year from 1980–81 to 1987–88, assuming a growth rate of 1 per cent. per annum for the first four years and 2 per cent. per annum for the following four years, and also assuming the continuation of existing tax rates combined with the raising of personal income tax allowances by 10 per cent. each year.

[pursuant to his reply, 28 April 1980, c. 332]: The increases in the yield of income tax will depend on the increases in money incomes in each year, as well as on the changes in tax rates and allowances.