To ask the Chancellor of the Exchequer what has been the estimated increased yield from lowering the higher tax rate to 60 per cent.; and if he will make a statement.
I regret that it is not possible to isolate the effect of reducing the top rates of income tax, but the proportion of tax paid by the top 1 per cent. of taxpayers in 1978–79 (part of whose income was liable at rates of 60 per cent. or more) was 11·2 per cent. In 1987–88, the top I per cent. are estimated to pay 13·5 per cent. of the yield.
To ask the Chancellor of the Exchequer what representations he has received seeking a reduction in the basic rate of income tax.
My right hon. Friend has received a number of representations.