§ 21 and 22. Mr. McKayasked the Chancellor of the Exchequer (1) what was the net income of a married man in the financial year 1956–57 whose earned income was £6,000 after Income Tax and Surtax; what will be his net annual income after Income Tax and Surtax under the provisions of the present Finance Bill; what will be his percentage rise in net income; what will be the increased net annual income of a married man with an earned income of £10,000; and what will be the percentage rise in his net income;
(2) what will be the change in the net income after Income Tax and Surtax under the provisions of the present Finance Bill compared with the financial year 1956–57 of a married man with two children with an earned income of £6,000 and a married man with two children and an earned income of £10,000; and what would be the increased net income in percentage in each case.
§ Mr. PowellI would refer the hon. Member to Table XI of the Financial Statement presented on 9th April.
§ Mr. McKayThat is rather a peculiar answer. Is it not correct that the increase in percentage in the case of the first Question would be 10 per cent. and in the case of the second Question 14 per cent.? Also, how do the Government consider that they are doing justice to the community at large when millions of men have to go on strike to get 5 per cent.?
§ Mr. PowellI think that if the hon. Gentleman will consult the Table he will find ample material for his speeches on the Finance Bill.
§ 23. Mr. McKayasked the Chancellor of the Exchequer, substituting a fiat rate increase of £100 to single and married persons and an extra allowance of £25 556 for each child for the provisions in the Finance Bill relating to concessions to payers of Income Tax and Surtax and children's allowance, what is his estimate of the additional net income, and the increase in percentage of net income, of a single man, married man, 'married man with one child and married man with two children, respectively, where their income is £700 per annum, £2,000 per annum, £6,000 per annum, and £10,000 per annum, respectively; and what would be the difference in cost compared with the proposals in the Finance Bill.
§ Mr. PowellAs the reply contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.
§ Following is the reply:
§ The estimated cost, in a full year, of increasing the single and married allowances by £100 each and the child allowance by £25 would be £450 million compared with the total of £51¾ million for the changes in earned income relief, child allowance and Surtax proposed in the Finance Bill. The effects on individual taxpayers are shown in the table below.
| Gross income(all earned) | Net income after tax | Percentage increase in net income | |
| At 1956–57 rates | With personal allowances increased as above | ||
| £ | £ | £ | |
| Single man | |||
| 700 | 588 | 626 | 6.4 |
| 2,000 | 1,458 | 1,501 | 2.9 |
| 6,000 | 2,973 | 3,016 | 1.4 |
| 10,000 | 3,873 | 3,916 | 1.1 |
| Married, no children | |||
| 700 | 626 | 659 | 5.3 |
| 2,000 | 1,501 | 1,543 | 2.8 |
| 6,000 | 3,016 | 3,058 | 1.4 |
| 10,000 | 3,916 | 3,958 | 1.1 |
| Married, one child | |||
| 700 | 659 | 689 | 4.5 |
| 2,000 | 1,543 | 1,597 | 3.4 |
| 6,000 | 3,058 | 3,111 | 1.7 |
| 10,000 | 3,958 | 4,011 | 1.3 |
| Married, two children | |||
| 700 | 683 | 700 | 2.5 |
| 2,000 | 1,586 | 1,650 | 4.0 |
| 6,000 | 3,101 | 3,165 | 2.1 |
| 10,000 | 4,001 | 4,065 | 1.6 |