To ask the Chancellor of the Exchequer what would be the average gain per taxpayer in 1992–93 from a one penny reduction in the basic rate of income tax for those with incomes (a) below £5,000, (b) between £5,000 and £10,000, (c) between £10,000 and £20,000, (d) between £20,000 and £30,000 and (e) over £30,000, giving in each case the average gain if the same money were instead spent on increasing the single person's tax allowance, in the United Kingdom.
At 1992–93 levels a one penny reduction in the basic rate of income tax would cost about £1·95 billion in a full year. Increasing the personal allowance for taxpayers of all ages by £300 would also cost about £1·95 billion in a full year in 1992–93 compared with statutory indexation.
|Average reduction in income tax (£ per year)|
|Annual income (£)||One penny reduction in basic rate||Increase in personal allowance of (£)300|