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European Community (Consumer Prices)

Volume 983: debated on Wednesday 23 April 1980

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asked the Chancellor of the Exchequer if he will publish a table showing the changes in (a) food prices and (b) all consumer prices in each Common Market country since May 1979, taking the May 1979 index as 100.

Following is the information:the average per tax unit in each of these bands; and if he will provide the same information for the rise in average mortgage interest repayments at each earnings band arising from the increase in interest rates in, separately, June 1979 and November 1979.

[pursuant to his reply, 14 April 1980, c. 519]: Information is available only by reference to ranges of total income subject to tax, which includes unearned income but excludes non-taxable social security benefits. The estimated cost relates to the changes in personal allowances, higher rate thresh-holds and investment income surcharge threshold and the withdrawal of the lower rate band. The information is for a full year at 1980–81 income levels, but because it is not accurate enough to subdivide the range over £20,000 no

Range of total income 1980–81Total budget costPercentage of total costAverage per tax unit*
£ millionPer cent.£
Up to £2,000533·537
Over £20,00015610·1485
* A tax unit includes married couples counted as 1 unit, The figures are averaged over all tax units who would be liable to tax at 1979–80 allowances.
The following is the available information regarding mortgage interest. The estimated amount of interest relates to all allowable mortgage interest but incorporates a rate of 15 per cent. for a full year in respect of building society

Range of total income 1980–81Allowable mortgage interestPercentage of total allowable interestAverage allowable interest per mortgagor
££millionPer cent.£
Up to 2,000350·6620
2,000 to 4,0001943·1710
4,000 to 5,0002654·3810
5,000 to 6,0004907·9880
6,000 to 8,0001,29621·0950
8,000 to 10,0001,23620·01,010
10,000 to 15,0001,70827·71,360
15,000 to 20,0004998·11,750
Over 20,0004497·32,690