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Taxation And Rates

Volume 82: debated on Tuesday 2 July 1985

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer if he will publish estimates of (a) value added tax, (b) domestic rates, and (c) other indirect taxes, paid by those on (i) 75 per cent. (ii) 100 per cent. and (iii) 150 per cent. of average earnings in 1985–86 and each of the previous seven years; and if he will state the level of average earnings in each year.

[pursuant to his reply, 28 June 1985, c. 513]: Estimates based on the 1983 family expenditure survey and for four household types are in the table.

£ per week
SingleMarried (one working)Married (both working)Married with two children (one working)
75 per cent. of average earnings 1978–79
VAT1·711·762·071·62
Domestic rates2·232·462·622·25
Other indirect taxes5·857·178·917·06

Single

Married (one working)

Married (both working)

Married with two children (one working)

1979–80

VAT3·163·213·712·97
Domestic rates2·662·933·112·67
Other indirect taxes6·648·039·897·95

1980–81

VAT3·813·924·443·56
Domestic rates3·433·763·973·46
Other indirect taxes7·819·4511·489·29

1981–82

VAT4·164·224·773·89
Domestic rates4·254·674·934·27
Other indirect taxes9·0310·9413·4010·89

1982–83

VAT4·514·585·234·24
Domestic rates4·685·165·464·70
Other indirect taxes9·4111·4114·2111·43

1983–84

VAT5·045·145·914·78
Domestic rates4·825·325·634·86
Other indirect taxes10·2712·4515·5212·44

1984–85

VAT5·735·846·685·30
Domestic rates4·955·465·785·02
Other indirect taxes10·8113·2316·4113·20

1985–86

VAT6·136·247·305·63
Domestic rates5·265·806·165·31
Other indirect taxes11·5514·1017·6914·04

100 per cent. of average earnings 1978–79

VAT2·352·492·762·22
Domestic rates2·522·682·782·58
Other indirect taxes7·098·629·917·98

1979–80

VAT4·374·594·984·11
Domestic rates3·013·193·303·07
Other indirect taxes8·159·7611·119·12

1980–81

VAT5·275·585·954·94
Domestic rates3·914·114·223·99
Other indirect taxes9·6311·5012·9010·72

1981–82

VAT5·806·086·465·42
Domestic rates4·845·105·244·93
Other indirect taxes11·1313·3015·0112·55

1982–83

VAT6·286·597·065·90
Domestic rates5·315·625·805·42
Other indirect taxes11·6313·8815·8813·19

1983–84

VAT7·017·387·936·62
Domestic rates5·475·795·985·59
Other indirect taxes12·6815·1617·3714·37

1984–85

VAT7·958·289·177·55
Domestic rates5·625·956·135·77
Other indirect taxes13·3216·0418·3015·21

1985–86

VAT8·508·859·908·03

Single

Married (one working)

Married (both working)

Married with two children (one working)

Domestic rates5·976·316·536·11
Other indirect taxes14·2317·1119·6716·17

150 per cent. of average earnings 1978–79

VAT3·694·014·083·48
Domestic rates3·133·123·093·26
Other indirect taxes9·6811·6411·839·88

1979–80

VAT6·947·517·496·53
Domestic rates3·763·733·683·92
Other indirect taxes11·3313·4213·5111·58

1980–81

VAT8·369·098·987·84
Domestic rates4·924·844·735·12
Other indirect taxes13·4815·8315·7313·71

1981–82

VAT9·179·919·838·59
Domestic rates6·065·985·876·30
Other indirect taxes15·4718·1918·2515·99

1982–83

VAT9·9310·7410·719·33
Domestic rates6·626·576·476·88
Other indirect taxes16·1818·9819·2316·81

1983–84

VAT11·0812·0111·9910·46
Domestic rates6·816·776·677·10
Other indirect taxes17·6820·7821·0718·37

1984–85

VAT12·5913·3914·1612·25
Domestic rates7·036·976·857·35
Other indirect taxes18·5521·9222·0719·39

1985–86

VAT13·4614·3315·1513·07
Domestic rates7·457·407·277·78
Other indirect taxes19·8523·4323·6720·66

Notes:

1. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. The levels of average earnings in each year are given below. The figures for 1985–86 is illustrative and assumes growth of 7 per cent. over the provisional 1984–85 outturn.

£ per week

£ per week

1978–7992·901982–83157·50
1979–80109·401983–84171·00
1980–81131·501984–85

*185·20

1981–82146·001985–86†198·20

* provisional.

† assumption.

2. The married couple with both working is assumed to have joint earnings of the various multiples of average earnings. In calculating disposable income it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.

3. The estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved. They are derived from the 1983 family expenditure survey, but have been adjusted to reflect the effects of average changes in spending patterns over the eight year period.

4. The category "other indirect taxes" covers central Government taxes only, but includes the indirect effects of taxes levied on businesses.