To ask the Chancellor of the Exchequer how much in tax concessions has been received by those on tax rates above 40 per cent. since June 1979 at constant prices to the latest available date; what estimates are available of the amount that has gone to each region and of the regional numbers of taxpayers in the tax bands above 40 per cent.; and if he will make a statement.
[holding answer 21 March 1988]: Income tax due from the top 2½ per cent. of taxpayers in 1978–79, the group liable at rates above 40 per cent., amounted to £3·4 billion, equivalent in real terms in 1988–89 to some £7·1 billion. In 1988–89, the tax due from the top 2½ per cent. of taxpayers will be about £9·0 billion — an increase of £2 billion, despite the reductions in tax rates and real increases in allowances since 1978–79. If the taxable incomes of the top 2½per cent. of taxpayers in 1988–89 were as they are now forecast to be, and at the same time were subject to 1978–79 income tax rates and allowances indexed to 1988-S9 levels by reference to the statutory formula, their liability would increase by £6 billion. However, the assumption on which this estimate is based is inherently implausible.I regret that corresponding information for each region is not available. Estimates of the number of taxpayers paying tax at the 45 per cent. rate or above in 1985–86, the latest year for which regional information is available, are given in the table.
|Number of taxpayers1 in 1985–86 paying tax at the 45 per cent, rate or above|
|Yorkshire and Humberside||29|
1 Married couples counted as one unit.
2 Includes members of the forces and Merchant Navy and a small number of civil servants serving abroad who have not been allocated to regions.
Cost of London weighting 1£ million
Number of staff receiving London weighting
Proportion of staff in department receiving London weighting per cent.
|Agriculture, Fisheries and Food||3·72||2,940||30|
|Central Office of Information||1·06||700||87|
|Crown Estate Office||0·06||40||75|
|Crown Office and Procurator Fiscal||0·00||0||0|
|Crown Prosecution Service3||3·35||2,520||72|
|Customs and Excise||7·69||6,410||25|
|Education and Science||2·01||1,350||55|
|Export Credits Guarantee Department||1·11||760||42|
|General Register Officer (Scotland)||0·00||0||0|
|Health and Social Security||20·06||17,010||18|
|Intervention Board for Agricultural Produce||0·00||0||0|
|Law Officer's Department||0·03||20||94|
|Lord Advocate's Department||0·03||20||89|
|Lord Chancellor's Department||5·30||3,940||38|
|National Investment and Loan Office||0·08||50||100|
|Northern Ireland Office||0·16||110||65|
|Office of Arts and Libraries||0·08||60||98|
|Office of Fair Trading||0·43||310||98|
|Office of Gas Supply||0·02||20||100|
|Office of Population Census and Surveys||1·11||730||35|
|Overseas Development Administration||1·40||950||64|
|Public Record Office||0·43||400||98|
|Registers of Scotland||0·00||0||0|
|Registry of Friendly Societies||0·17||110||99|
|Scottish Courts Administration||0·00||0||0|
|Scottish Courts Service||0·00||0||0|
|Scottish Records Office||0·00||0||0|
|Trade and Industry||10·76||7,770||64|
|Treasury Solicitor's Department||0·62||410||95|