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Volume 175: debated on Wednesday 27 June 1990

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To ask the Chancellor of the Exchequer if he will publish in the Official Report the method by which he calculates personal real disposable income.

Personal disposable income is calculated by deducting from total personal income before tax the sum of United Kingdom taxes on income, social security contributions, payments of the community charge, but not, in the past, payments of rates and transfers abroad. Real personal disposable income is derived by dividing personal disposable income by the consumers' expenditure deflator the ratio of consumers' expenditure at current prices to consumers' expenditure revalued at constant prices. A description of the personal sector and of the methods of calculating the various compoenents of the personal disposable income calculation can be found in chapter 6, part A of the Central Statistical Office's "United Kingdom National Accounts: Sources and Methods".