§ Mr. Ralph Howell
asked the Chancellor of the Exchequer what the loss in revenue would be if the income tax thresholds were raised to the family income supplement level for each person according to family size.
§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 29th June 1976; Vol. 914, c. 108], gave the following information:
To raise tax thresholds to the corresponding average family income supplement levels for 1976–77, taking into account the levels before and after the July 1976 uprating, would require varying increases in tax allowances depending on the number of children in the family. If it were practicable to vary the child tax allowances in this way, the estimated cost in 1976–77 would be about £1,200 million in addition to the increases in personal reliefs proposed in the Budget. 107W But if tax thresholds were raised to family income supplement levels by increasing the adult personal allowances the cost would be as quoted in the reply given on 13th May 1976 to a similar Question on this subject from the hon. Member.