§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what the savings would be of taxing child benefit at the higher rate.
§ Mr. Dorrell
If child benefit were added to the father's —or lone mother's—taxable income and the part of it which came above the basic rate limit was taxed at 40 per cent., the revenue yield at 1993–94 levels would be about £250 million. The equivalent yield if it were added to the mother's—or lone father's—taxable income would be about £30 million.