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Budget

Volume 115: debated on Friday 1 May 1987

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asked the Chancellor of the Exchequer, pursuant to his answer of 6 April, Official Report, columns 67–8, if he will give the gains per average person in each of the income ranges given from the Budget proposals (a) on an unindexed basis and (b) net of indexation.

[pursuant to his reply, 22 April 1987, c. 579]: The information is in the table.

Range of gross incomeNumber of tax units1 in 1987–88Average2 reduction in income tax liability in 1987–88 compared with
An unindexed baseAn indexed base3
£million££
Under 5,0003·25020
5,000 to 7,5004·09060
7,500 to 10,0003·613090
10,000 to 12,5003·0160120
12,500 to 15,0002·2200150
15,000 to 20,0002·7250200
20,000 to 30,0001·6410310
30,000 to 50,0000·6530330
Over 50,0000·16620180
All21·2170120
1 All information is in terms of tax units i.e. married couples are counted as one and their incomes combined.
2 By reference to the number paying tax in 1987–88.
3 That is, the 1986–87 tax regime indexed (by 3·7 per cent.) to 198–88 levels by reference to the statutory formula.