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Income Tax: Tax Rates and Bands

Volume 476: debated on Tuesday 20 May 2008

To ask the Chancellor of the Exchequer what estimate he has made of the number of people in (a) West Chelmsford constituency and (b) Chelmsford Local Authority area who have been adversely affected by the abolition of the 10 pence income tax rate. (206063)

Budget 2007 announced a package of reforms from which over 16 million households gained and over five million households lost out. It is not possible to provide comparable figures of those who have been affected by the withdrawal of the 10 pence starting rate for parliamentary constituency or local authority areas.

The Chancellor announced income tax measures on 13 May to provide financial support in 2008-09 for all basic rate taxpaying families, fully compensating 80 per cent. of households adversely affected by the withdrawal of the 10 pence starting rate and with the remainder seeing their loss at least halved.

The Chancellor will set out proposals to help those who lost out as a result of the withdrawal of the 10 pence starting rate of tax for the longer term in the Pre-Budget Report.

To ask the Chancellor of the Exchequer on what date the 10 pence income tax band was first announced or described by his Department as an interim or transitional measure; and if he will make a statement. (206181)

I refer the hon. Member to the statement made by the Chancellor of the Exchequer on 13 May 2008.