asked the Chancellor of the Exchequer if he will now update his answer to the hon. Member for Birmingham, Perry Barr of 27 March 1984, Official Report, column 109, by giving information about the reductions in the basic rate of income tax which would be necessary to restore tax payments to their 1978–79 levels in 1985–86.
I shall let the hon. Member have a reply as soon as possible.
asked the Chancellor of the Exchequer what is the estimated yield from all sources of taxation, including excise and other duties, for 1985–86; what was the comparable yield for 1978–79 revalued at 1985–86 prices; and if he will publish a breakdown by categories of the real increase in taxes between 1978–79 and 1985–86, similar to that in his answer of 28 March 1984, Official Report, column 206.
The estimated total yield of taxes, local authority rates and national insurance contributions is £138 billion in 1985–86; the yield in 1978–79 revalued at 1985–86 prices using the GDP deflator is £109 billion. The other information requested is in the table.
£billion 1985–86 prices | |
Change on 1978–79 | |
Income tax | -0·4 |
Non North Sea corporation tax | — |
North Sea taxes* | +12·4 |
Capital taxes and stamp duty | +0·6 |
NIC—employees | +4·4 |
NIC—employers | +1·1 |
NIS | -3·9 |
LA rates | +2·8 |
Taxes on expenditure | +11·8 |
Total change† | +29·0 |
* Before advance corporation tax set-off. | |
† Components do not sum to total because of rounding. |
asked the Chancellor of the Exchequer whether he will provide information on the net income after income tax, national insurance contributions and child benefit at (a) actual prices and (b) equivalent 1984–85 prices of typical household units (i) single, (ii) married couple, (iii) married couple with two children and (iv) married couple with four children, whose earnings from work are equivalent to the following points on the male earnings distribution: (1) lowest decile, (2) median and (3) highest decile for each year since April 1978.
Information in the following tables is based on estimates of earnings for those in full-time work paid at adult rates, with pay unaffected by absence. Estimates are based on information from the new earnings surveys.Income tax rates and allowances for April 1979 are those specified in the Finance Act 1979, later replaced by those announced in June 1979; for other Aprils, they are the rates and allowances for the financial year immediately following. Taxpayers are assumed to have no reliefs or allowances other than the appropriate personal allowance. National insurance contributions are at the contracted-in rate.The calculations take no account of means-tested benefits to which those at the lowest decile may be entitled. Changes in the purchasing power of net earnings have been calculated by reference to movements in the general index of retail prices between Aprils.
Earnings after income tax, National Insurance Contributions and Child Benefit
| ||||||
At current prices
| At constant (April 1984) prices
| At constant prices (April 1978=100)
| At current prices
| At constant (April 1984) prices
| At constant prices {April 1978=100)
| |
£
| £
| £
| £
| |||
Single man
| Married man
| |||||
At the lowest decile gross earnings
| ||||||
April 1978 | 39·35 | 70·71 | 100·0 | 42·84 | 76·98 | 100·0 |
April 1979 | 44·09 | 71·98 | 101·8 | 47·90 | 78·20 | 101·6 |
April 1980 | 53·47 | 71·70 | 101·4 | 57·92 | 77·66 | 100·9 |
April 1981 | 57·67 | 69·02 | 97·6 | 62·11 | 74·34 | 96·6 |
April 1982 | 61·95 | 67·76 | 95·8 | 67·03 | 73·32 | 95·1 |
April 1983 | 66·91 | 70·37 | 99·5 | 72·73 | 76·50 | 99·4 |
April 1984 | 74·43 | 74·43 | 105·3 | 81·07 | 81·07 | 105·3 |
At the median of gross earnings
| ||||||
April 1978 | 56·29 | 101·15 | 100·0 | 59·78 | 107·42 | 100·0 |
April 1979 | 63·94 | 104·39 | 103·2 | 67·75 | 110·60 | 103·0 |
April 1980 | 78·52 | 105·29 | 104·1 | 82·96 | 111·24 | 103·6 |
April 1981 | 85·56 | 102·39 | 101·2 | 90·00 | 107·71 | 100·2 |
April 1982 | 93·00 | 101·73 | 100·6 | 98·8 | 107·28 | 99·9 |
April 1983 | 100·64 | 105·85 | 104·6 | 106·47 | 111·97 | 104·2 |
April 1984 | 116·19 | 116·19 | 114·9 | 122·82 | 122·82 | 114·3 |
At the highest decile of gross earnings
| ||||||
April 1978 | 85·50 | 153·64 | 100·0 | 88·99 | 159·92 | 100·0 |
April 1979 | 96·89 | 158·17 | 102·9 | 100·70 | 164·39 | 102·8 |
April 1980 | 123·64 | 165·78 | 107·9 | 128·08 | 171·74 | 107·4 |
April 1981 | 139·36 | 166·79 | 108·6 | 143·81 | 172·10 | 107·6 |
April 1982 | 151·76 | 166·00 | 108·0 | 156·84 | 171·55 | 107·3 |
April 1983 | 165·83 | 174·41 | 113·5 | 171·66 | 180·53 | 112·9 |
April 1984 | 196·55 | 196·55 | 127·9 | 203·18 | 203·18 | 127·0 |
Married man with two children *
| Married man with four children †
| |||||
At the lowest decile gross earnings
| ||||||
April 1978 | 48·71 | 87·53 | 100·0 | 55·15 | 99·11 | 100·0 |
April 1979 | 55·90 | 91·26 | 104·3 | 63·90 | 104·32 | 105·3 |
April 1980 | 65·92 | 88·38 | 101·0 | 73·92 | 99·11 | 100·0 |
April 1981 | 71·61 | 85·70 | 97·9 | 81·11 | 97·07 | 97·9 |
April 1982 | 77·53 | 84·80 | 96·9 | 88·03 | 96·29 | 97·1 |
April 1983 | 84·43 | 88·80 | 101·4 | 96·13 | 101·11 | 102·0 |
April 1984 | 94·07 | 94·07 | 107·5 | 107·07 | 107·07 | 108·0 |
At the median of gross earnings
| ||||||
April 1978 | 65·65 | 117·97 | 100·0 | 72·15 | 129·66 | 100·0 |
April 1979 | 75·75 | 123·67 | 104·8 | 83·75 | 136·72 | 105·4 |
April 1980 | 90·96 | 121·97 | 103·4 | 98·96 | 132·70 | 102·3 |
April 1981 | 99·50 | 119·08 | 100·9 | 109·00 | 130·45 | 100·6 |
April 1982 | 108·58 | 118·77 | 100·7 | 119·08 | 130·25 | 100·4 |
April 1983 | 118·17 | 124·28 | 105·3 | 129·87 | 136·58 | 105·3 |
April 1984 | 135·82 | 135·82 | 115·1 | 148·82 | 148·82 | 114·8 |
At the highest decile of gross earnings
| ||||||
April 1978 | 94·86 | 170·46 | 100·0 | 101·36 | 182·15 | 100·0 |
April 1979 | 108·70 | 177·46 | 104·1 | 116·70 | 190·51 | 104·6 |
April 1980 | 136·08 | 182·46 | 107·0 | 144·08 | 193·19 | 106·1 |
April 1981 | 153·31 | 183·47 | 107·6 | 162·81 | 194·84 | 107·0 |
April 1982 | 167·34 | 183·04 | 107·4 | 177·84 | 194·52 | 106·8 |
April 1983 | 183·36 | 192·84 | 113·1 | 195·06 | 205·15 | 112·6 |
April 1984 | 216·18 | 216·18 | 126·8 | 229·18 | 229·18 | 125·8 |
* Both children under 11. | ||||||
† Two children under 11, one child 11–15, one child over 16. |
asked the Chancellor of the Exchequer if he will publish in the Official Report a table showing the comparison between the yield in real terms in 1978–79 and what he is now proposing for 1985–86 in (a) direct taxes including national insurance and (b) indirect taxes.
The information is in the following table:
Changes on 1978–79 | |
£ billion, 1985–86 prices | |
Direct taxes* | +16·9 |
Indirect taxes† | +12·1 |
+29·0 | |
* Including employees' NICs. | |
† Including employers' NICs. |
asked the Chancellor of the Exchequer if he will construct an index, with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) two thirds, (b) average, (c) five times average and (d) 10 times average earnings for households where the taxpayer is (i) single, (ii) married, (iii) married with two children and (iv) married with four children, and in all cases assuming that the wife does not work, in the manner of the answer of 23 November 1983, Official Report, column 171–2.
asked the Chancellor of the Exchequer if he will construct an index with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) half, (b) two thirds, (c) average, (d) five
Multiple of average earnings | |||||||||||
Half | Two-thirds | One | Five | Ten | |||||||
(a) | (b) | (a) | (b) | (a) | (b) | (a) | (b) | (a) | (b) | ||
Single | |||||||||||
1978–79 | 23·6 | 100·0 | 27·6 | 100·0 | 31·5 | 100·0 | 52·2 | 100·0 | 67·5 | 100·0 | |
1979–80 | 22·9 | 102·6 | 26·3 | 103·5 | 29·7 | 104·4 | 42·8 | 121·6 | 51·4 | 151·9 | |
1980–81 | 24·7 | 103·5 | 27·7 | 104·9 | 30·7 | 106·3 | 44·3 | 122·5 | 52·1 | 154·6 | |
1981–82 | 26·9 | 100·1 | 29·6 | 101·7 | 32·3 | 103·5 | 46·4 | 117·3 | 53·2 | 150·5 | |
1982–83 | 27·3 | 100·3 | 30·2 | 101·7 | 33·0 | 103·2 | 45·9 | 119·4 | 53·0 | 152·5 | |
1983–84 | 27·0 | 104·5 | 30·0 | 105·7 | 33·0 | 107·1 | 45·1 | 125·7 | 52·5 | 159·5 | |
1984–85 | 26·4 | 107·8 | 29·6 | 108·8 | 32·7 | 110·0 | 45·2 | 128·4 | 52·6 | 163·1 | |
1985–86 | 26·1 | 109·8 | 29·3 | 110·8 | 32·5 | 111·9 | 45·3 | 129·9 | 52·7 | 165·2 | |
Married | |||||||||||
1978–79 | 16·0 | 100·0 | 22·0 | 100·0 | 27·8 | 100·0 | 50·5 | 100·0 | 66·5 | 100·0 | |
1979–80 | 16·0 | 101·7 | 21·2 | 102·7 | 26·3 | 103·8 | 41·5 | 120·3 | 50·7 | 149·7 | |
1980–81 | 17·9 | 102·7 | 22·7 | 104·1 | 27·3 | 105·7 | 42·9 | 121·2 | 51·5 | 152·4 | |
1981–82 | 20·8 | 98·7 | 25·1 | 100·5 | 29·3 | 102·5 | 45·2 | 115·8 | 52·6 | 148·1 | |
1982–83 | 20·8 | 99·4 | 25·4 | 100·9 | 29·8 | 102·5 | 44·6 | 118·0 | 52·3 | 150·2 | |
1983–84 | 20·1 | 104·0 | 24·9 | 105·3 | 29·6 | 106·7 | 43·7 | 124·3 | 51·9 | 157·3 | |
1984–85 | 19·2 | 107·7 | 24·2 | 108·7 | 29·1 | 109·9 | 43·8 | 127·2 | 51·9 | 160·9 | |
1985–86 | 18·7 | 109·9 | 23·9 | 110·8 | 28·9 | 111·8 | 43·9 | 128·8 | 51·9 | 163·1 | |
Married with 2 children (both under 11) | |||||||||||
1978–79 | 2·5 | 100·0 | 11·7 | 100·0 | 20·9 | 100·0 | 48·8 | 100·0 | 65·6 | 100·0 | |
1979–80 | 1·4 | 102·8 | 10·3 | 103·3 | 19·0 | 104·2 | 40·0 | 119·1 | 50·0 | 147·9 | |
1980–81 | 4·9 | 102·5 | 13·0 | 103·5 | 20·8 | 105·1 | 41·6 | 119·8 | 50·8 | 150·4 | |
1981–82 | 7·3 | 99·5 | 15·0 | 100·7 | 22·5 | 102·5 | 43·9 | 114·7 | 51·9 | 146·3 | |
1982–83 | 6·9 | 100·6 | 15·0 | 101·5 | 22·8 | 102·8 | 43·2 | 116·9 | 51·6 | 148·4 | |
1983–84 | 5·9 | 105·5 | 14·3 | 106·2 | 22·5 | 107·2 | 42·3 | 123·2 | 51·2 | 155·4 | |
1984–85 | 4·8 | 109·3 | 13·5 | 109·7 | 21·9 | 110·5 | 42·3 | 126·1 | 51·2 | 159·1 | |
1985–86 | 4·5 | 111·2 | 13·3 | 111·5 | 21·8 | 112·3 | 42·4 | 127·6 | 51·2 | 161·2 | |
Married with 4 children (two under 11, one 11–15 and one over 16) | |||||||||||
1978–79 | -11·7 | 100·0 | 0·4 | 100·0 | 13·3 | 100·0 | 46·7 | 100·0 | 64·6 | 100·0 | |
1979–80 | -13·2 | 103·1 | -0·6 | 102·7 | 11·6 | 103·6 | 38·5 | 117·4 | 49·3 | 145·6 | |
1980–81 | -8·1 | 101·7 | 3·3 | 102·0 | 14·3 | 103·8 | 40·3 | 117·7 | 50·2 | 147·8 | |
1981–82 | -6·2 | 99·5 | 4·9 | 99·9 | 15·8 | 101·7 | 42·5 | 112·9 | 51·3 | 143·9 | |
1982–83 | -6·9 | 101·0 | 4·7 | 100·9 | 15·9 | 102·3 | 41·8 | 115·1 | 50·9 | 146·0 | |
1983–84 | -8·3 | 106·1 | 3·7 | 105·8 | 15·3 | 106·8 | 40·9 | 121·4 | 50·4 | 152·9 | |
1984–85 | -9·7 | 109·9 | 2·7 | 109·3 | 14·7 | 110·2 | 40·9 | 124·3 | 50·4 | 156·5 | |
1985–86 | -9·7 | 111·5 | 2·6 | 111·0 | 14·6 | 111·8 | 41·0 | 125·8 | 50·5 | 158·6 |