Vol. 488 No. 1
145 Mr. Yates asked the Minister for Finance the original estimated yield from income tax in 1998; the actual yield for January and February 1998; the actual yield for 1997; if he is revising the estimate for 1998; and if he will make a statement on the matter. [5811/98]
On budget day the Department of Finance forecast an income tax yield of £5,522 million for 1998. This was based on an expected outturn of £5,194 million for 1997 and an increase of 6.3 per cent in 1998. The actual outturn for 1997 was £5,218 million, £24 million higher than expected. This additional buoyancy is expected to be carried into this year.
Data are available for the first two months of the year. These indicate that income tax receipts are over 9 per cent higher than the same period last year reflecting the impact of both higher employment and earnings. At this early stage the impact of budget day changes have not taken effect, so it is not our intention to revise our forecasts for the year as a whole other than to reflect the improved outturn for 1997. As usual, I will be issuing a detailed statement on the Exchequer Returns at the end of the March quarter.
