Written question asked by Lord Willetts (Conservative) on Friday, 16 July 2004, in the House of Commons. It was due for an answer on Thursday, 22 July 2004. It was answered by Baroness Primarolo (Labour) on Thursday, 22 July 2004 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will estimate (a) the gross cost and (b) the cost net of savings in social security benefits. of raising the personal income tax allowance to £10,000 per annum.

Answer: Mr. Willetts: To ask the Chancellor of the Exchequer if he will estimate (a) the gross cost and (b) the cost net of savings in social security benefits of raising the personal income tax allowance to £10,000 per annum. [185705] Dawn Primarolo: The cost of raising the personal income tax allowances to £10,000 per annum in 2004-05 is (a) £29.8 billion in gross costs and (b) £29.6 billion in costs net of savings of social security benefits. The figures exclude any estimate of behavioural response to the tax change. The gross costs are based on the Survey of Personal Incomes 2001-02 and are consistent with the Budget 2004. The savings from social security benefits are from the DWP Policy Simulation Model, based upon the Family Resources Survey 2002-03 and consistent with the Budget 2004.

Secondary information

Type: Written question
Reference: 424 c484W; 185705
Session: 2003-04
Subjects: Costs Income tax Personal income Social security benefits Tax allowances
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk