HC Deb 21 June 1979 vol 968 cc673-5W
Mr. Hardy

asked the Chancellor of the Exchequer by how much each week a person will benefit from his Budget proposals if he earns, respectively, £100,000, £50,000, £40,000, £10,000, £7,000, £5,000 and £3,000.

Mr. Peter Rees

The figures for a married man are as follows:

Annual income and Weekly reduction in income tax
£ £
3,000 2.03
5,000 3.18
7,000 4.34
10,000 6.69
40,000 126.20
50,000 170.43
100,000 391.59

Mr. Field

asked the Chancellor of the Exchequer if he will list the real weekly net income of a single person, married couple married couple with one two and four children earning (a) half, (b) two-thirds (c) average and (d) five times average earnings for each year since 1974; and if this data could be presented as an index with 1974=100.

Mr. Peter Rees

I shall let the hon. Member have a reply as soon as possible.

Mr. Field

asked the Chancellor of the Exchequer what size wage increase taxpayers would need to gain to give them the net pay equivalent of (a) the £4 child benefit, (b) a 50p increase and (c) a £1 increase assuming their marginal tax rate is the reduced, the standard and each of the higher rates of tax, respectively.

Mr. Peter Rees

I shall let the hon. Member have a reply as soon as possible.

Dr. McDonald

asked the Chancellor of the Exchequer (1) if he will publish in the Official Report a table showing the increase in net weekly income for a married couple with two children not over 11 years of age, for 1979–80, following the tax changes contained in the April 1979 Finance Act and the April increase in child benefit for weekly earnings of £35, £40, £50, £60, £90, £100, £150 and £200;

(2) if he will publish a table in the Official Report showing the increase in net weekly income in 1979–80 for a married couple with two children not over 11 years of age, consequent upon the proposed tax changes in his Budget, but excluding the April 1979 Finance Act and the April child benefit increase for weekly earnings of £35, £40, £50, £60, £90, £100, £150 and £200.

Mr. Peter Rees

, pursuant to his reply [Official Report, 18 June 1979], gave the following answer:

The figures are:

Weekly earnings Increase in net weekly income in 1979 FA, including increase in child benefit. Further increase proposed in the Budget Total
£ £ £
£35 … … 1.71 0.68 2.39
£40 … … 1.71 0.68 2.39
£50 … … 1.62 0.90 2.52
£60 … … 1.62 1.20 2.82
£90 … … 1.62 2.10 3.72
£100 … … 1.62 2.40 4.02
£150 … … 0.64 3.91 4.55
£200 … … 0.56 6.39 6.95

The figures take account of the increase in the national insurance contribution threshold.

Mr. Field

asked the Chancellor of the Exchequer how many taxpayers gained from his changes in higher rates of tax; and what was the average gain per taxpayer.

Mr. Peter Rees

, pursuant to his reply [Official Report, 15 June 1979],gave the following answer:

Approximately 1.1 million taxpayers—counting married couples as one. The average gain is about £775 per taxpayer. In addition, approximately 100,000 taxpayers have been taken out of higher rate liability by the increase in the personal allowances.