§ Mr. Webb
To ask the Chancellor of the Exchequer if he will estimate the effect on the net income of each decile group of(a) benefit units and (b) households, of increasing the personal tax allowance to £10,000 per annum for all taxpayers; and if he will estimate the cost of such a policy. 855W
§ Dawn Primarolo
The estimated cost of increasing the personal tax allowance to £10,000 per annum for all taxpayers in 2000–01 is estimated to be £27½ billion in the full year. The table shows estimated average gains in net income.
Average gain in net income (£ per week) of gainers from increasing the personal tax allowance to £10,000 per annum for all taxpayers Decile Benefit unit income Household income Lowest 11 10 2nd 6 8 3rd 8 10 4th 12 17 5th 18 22 6th 23 28 7th 27 33 8th 31 38 9th 36 42 Highest 46 50
1. The revenue effect is based on the 1997–98 Survey of Personal Income data projected to 2000–01 and is consistent with the November 1999 pre-Budget Report.
2. Deciles are defined in terms of equivalised net income on a benefit unit and household net income basis using the McClements scale; decile boundaries are higher for households than benefit units.