Treasury written question – answered at on 25 June 2007.
Vincent Cable
Shadow Chancellor of the Exchequer, Liberal Democrat Spokesperson (Treasury)
To ask the Chancellor of the exchequer
(1) if he will estimate the number of people who will be subject to a higher marginal rate of taxation as a result of Budget 2007 in each year from 2007-08 to 2009-10; and if he will make a statement;
(2) if he will estimate the number of people who will pay more income tax as a result of Budget 2007 in each year from 2007-08 to 2009-10; and if he will make a statement.
Frank Field
Labour, Birkenhead
To ask the Chancellor of the exchequer
(1) what estimate he has made of the number of people (a) whose income will be reduced by the abolition of the 10p income tax rate, broken down by gender, and (b) whose loss of income caused by the abolition of the 10p income tax rate will be made up by tax credits;
(2) how many taxpayers will see their tax bill increase as a result of the proposed abolition of the 10p starting rate; and how many of this group will have the tax increase covered (a) completely and (b) in part by increased eligibility for tax credits.
Madeleine Moon
Labour, Bridgend
To ask the Chancellor of the exchequer what estimate he has made of the effect of the abolition of the 10p tax band on an individual earning £10,000 per annum who is (a) in receipt of tax credits and (b) not in receipt of tax credits.
Edward Balls
The Economic Secretary to the Treasury
In 2008-09, all 31 million taxpayers would have benefited from the 10p rate of income tax. Some 28 million of these taxpayers stand to gain from the cut in the basic rate of income tax to 20p.
As a result of the personal tax package changes in Budget 2007 as a whole, four in five households will be better off or see no change in household income. This means 21 million households will see their net tax payments fall or stay the same.
The final impact on individual families' living standards will depend upon final levels of wages, the national minimum wage, indexation and levels of benefits such as the child tax credit and the pension credit.
Yes4 people think so
No6 people think not
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The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
