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Income Tax: Tax Rates and Bands

Volume 475: debated on Tuesday 29 April 2008

To ask the Chancellor of the Exchequer what estimate he has made of the number of people who will be worse off in Beverley and Holderness constituency following the abolition of the 10 pence tax rate ; and if he will make a statement. (201851)

It is not possible to provide reliable estimates of the impact of tax reforms at constituency level.

The removal of the 10p rate is part of a package of reforms announced in Budget 2007 and should not be looked at in isolation. As a result of these reforms four-in-five households in the United Kingdom are better or no worse off than if they had not taken place.

Budget 2008 announced additional measures supporting low income households including increased child tax credit, child benefit and housing benefits that will lift up to a further 250,000 children out of poverty, and one-off payments of £100 to households with someone aged 80 or over and £50 to households with someone aged 60 or over, to be paid alongside the winter fuel payment in 2008-09.