Written question asked by Vincent Cable (Liberal Democrat) on Friday, 13 April 2007, in the House of Commons. It was due for an answer on Tuesday, 17 April 2007. It was answered by Baroness Primarolo (Labour) on Monday, 23 April 2007 on behalf of the Treasury.

Income Tax: Tax Rates and Bands

Question: To ask the Chancellor of the Exchequer if he will estimate the revenue implications of a 1 per cent. change in the basic rate of income tax in each year from 2007-08 to 2010-11; and if he will make a statement.

Answer

The information requested can be found in the following table.

	Cost/yield (£ billion)
2007-08	3.7
2008-09	4.5
2009-10	4.7
2010-11	4.9

Figures provided are on an accruals basis.The estimates are based on the 2004-05 survey of personal incomes projected forward against an indexed baseline which includes the reforms to simplify the income tax and National Insurance system announced at Budget 2007.The figures exclude any estimate of behavioral response to the tax change which could be significant given the scale of the change.

Secondary information

Type: Written question
Reference: 459 c985-6W; 131840
Session: 2006-07
Related items: Income Tax
Tuesday, 1 May 2007
Written questions
House of Commons
Subjects: Income tax Tax rates and bands
Link: View this Written question on www.publications.parliament.uk

Income Tax: Tax Rates and Bands

Secondary information

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