§ Mr. Newtonasked the Chancellor of the Exhcequer if he will state the loss in revenue that would follow from a reduction to 30 per cent. of the basic rate of income tax.
§ Mr. Robert Sheldon:£1,810 million in a full year, based on 1977–78 income levels and the allowances proposed in the Chancellor's statement of 26th October.
§ Mr. Raisonasked the Chancellor of the Exchequer (1) whether he will publish in the Official Reporta table showing for 1973–74 and 1977–78 the effective rate of tax plus social security contributions for a man with two children aged under 11 years having income, all earned, equivalent to the national average earnings, twice the average, and three times the average, making necessary adjustments for family allowance and child benefit;
(2) whether he will publish in theOfficial Reporta table showing for 1973–74 and 1977–78 the effective rate of tax plus social security contributions for a man with two children aged under 11 years having income, all earned, equivalent to the average for full-time adult male workers (new earnings survey), twice the average, and three times the average, making necessary adjustments for family allowance and child benefit.
§ Mr. Robert Sheldon:pursuant to his reply [Official Report, 8th November 1977; Vol. 938, c. 77-8], gave the following information:
The figures are as follows:
Year and earnings Effective rate of tax plus social security contributions Per cent. 1973–74 Average earnings 21.6 Twice average earnings 26.1 Three times average earnings 28.7 1977–78 Average earnings 24.1 Twice average earnings 30.2 Three times average earnings 36.9 The effective rate has been taken to be the percentage of total income, including 273W family allowance for 1973–74 and child benefit for 1977–78, taking in income tax and national insurance contributions.
Average earnings for both years are based on the New Earning's Survey's estimates of the average weekly earnings of full-time adult male workers in all occupations, both manual and non-manual. For 1973–74 the average of the April 1973 and April 1974 NES estimates has been used and for 1977–78 the April 1977 NES estimate has been updated to August 1977 by the monthly index of average earnings.
It has been assumed that the employee was not contracted out of the graduated pension scheme in April 1973.
For 1977–78 the figures take account of the Chancellor's proposals of 26th October.