HC Deb 21 February 1977 vol 926 cc441-2W
Mrs. Chalker

asked the Secretary of State for Social Services if he will state in the Official Report the assumptions on which the number of families subject to the 75 per cent. marginal rate of taxation are based.

Mr. Orme

The main assumptions are that the marginal rate of taxation includes income tax, national insurance contributions and loss of means-tested benefits corresponding to a £1 rise in gross earnings; that tax and benefits are adjusted immediately the earnings rise—though this will not happen in practice for the great majority of cases as some benefits, for example, family income supplement, free school meals and free milk, are awarded for periods of 52 weeks; and that no account is taken of changes in tax allowances and the income limits for benefits. For these reasons, the figures given must be regarded as theoretical only and as liable to mislead if quoted without qualification.

Great Britain West Midlands County Walsall North Constituency
Place of birth Males Females Males Females Males Females
All areas 100.0 100.0 100.0 100.0 100.0 100.0
United Kingdom 93.9 94.3 89.9 92.2 96.2 97.3
Irish Republic 1.3 1.3 2.8 2.5 0.4 0.4
Old Commonwealth 0.2 0.3 0.1 0.1 0.1 0.1
New Commonwealth 2.4 1.9 5.8 4.0 2.9 1.7
Other European countries 1.1 1.2 0.7 0.7 0.3 0.3
Other foreign countries and not stated 1.0 1.0 0.7 0.5 0.1 0.1
Total number ('000) (&=100 percent.) 25,484 27,091 1,363 1,389 50 51

Some further details of the calculations involved were included in my hon. Friend's reply on Friday 18th February to my hon. Friends the hon. Members for Bedwellty (Mr. Kinnock) and Sowerby (Mr. Madden)—[Vol. 926, c. 403–4.] If the hon. Lady wishes to go more deeply into the complexities of this subject, perhaps she will write to me and I will gladly give her further information.