Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on the public finances in 2016-17 of (a) raising the personal tax allowance to £15,000 per annum and (b) increasing the basic rate of income tax to 25 per cent.
The cost of raising the income tax personal allowance and basic rate of income tax in 2018-19 may be approximated using the “Direct effects of illustrative tax changes” table as published at the following address:
https://www.gov.uk/government/publications/direct-effects-of-illustrative-tax-changes
The table shows the cost of a £100 increase and a 10% increase in the personal allowance.
The table also shows the revenue generated by a 1% increase in the basic rate of income tax. This can be used to scale the proportionate cost to raise the basic rate of Income tax to 25%.