Oral Answers to Questions

Royston Smith Excerpts

Tuesday 24th October 2017 Commons Chamber

[Mr Speaker]

Finally, Royston Smith.

[Royston Smith (Southampton, Itchen) (Con)]

13. What assessment he has made of the effect of recent increases in income tax thresholds on household income.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

In 2017-18, as a result of increasing the tax-free personal allowance and the higher rate threshold, 31 million individuals will see their income tax bill reduced and 1.3 million individuals will be taken out of income tax altogether; 585,000 individuals will have been taken out of the higher rate of tax in 2017-18.

[Royston Smith]

In 2017-18 and beyond, all basic rate taxpayers will pay £1,000 less per year in tax than they did in 2010. Can my right hon. Friend confirm that an employee paying the basic rate of tax would need to earn an additional £1,471 annually to take home £1,000 in extra income?