European Community (Consumer Prices) (Hansard, 23 April 1980)

§ Mr. Ernie Ross
asked the Chancellor of the Exchequer if he will publish a table showing the changes in (a) food prices and (b) all consumer prices in each Common Market country since May 1979, taking the May 1979 index as 100.

§ Mr. Biffen
Following is the information:
the average per tax unit in each of these bands; and if he will provide the same information for the rise in average mortgage interest repayments at each earnings band arising from the increase in interest rates in, separately, June 1979 and November 1979.

§ Mr. Peter Rees
[pursuant to his reply, 14 April 1980, c. 519]: Information is available only by reference to ranges of total income subject to tax, which includes unearned income but excludes non-taxable social security benefits. The estimated cost relates to the changes in personal allowances, higher rate thresh-holds and investment income surcharge 145W threshold and the withdrawal of the lower rate band. The information is for a full year at 1980–81 income levels, but because it is not accurate enough to subdivide the range over £20,000 no

Range of total income 1980–81 Total budget cost Percentage of total cost Average per tax unit^*

£ million Per cent. £

Up to £2,000 … … … … … 53 3.5 37

£2,000–£4,000 … … … … … 219 1.2 41

£4,000–£5,000 … … … … … 136 8.9 49

£5,000–£6,000 … … … … … 156 10.1 62

£6,000–£8,000 … … … … … 289 18.8 68

£8,000–£10,000 … … … … … 203 13.2 75

£10,000–£15,000 … … … … … 212 13.8 97

£15,000–£20,000 … … … … … 115 7.4 240

Over £20,000 … … … … … 156 10.1 485

^* A tax unit includes married couples counted as 1 unit, The figures are averaged over all tax units who would be liable to tax at 1979–80 allowances.

The following is the available information regarding mortgage interest. The estimated amount of interest relates to all allowable mortgage interest but incorporates a rate of 15 per cent. for a full year in respect of building society

Range of total income 1980–81 Allowable mortgage interest Percentage of total allowable interest Average allowable interest per mortgagor

£ £million Per cent. £

Up to 2,000 … … … … … 35 0.6 620

2,000 to 4,000 … … … … … 194 3.1 710

4,000 to 5,000 … … … … … 265 4.3 810

5,000 to 6,000 … … … … … 490 7.9 880

6,000 to 8,000 … … … … … 1,296 21.0 950

8,000 to 10,000 … … … … … 1,236 20.0 1,010

10,000 to 15,000 … … … … … 1,708 27.7 1,360

15,000 to 20,000 … … … … … 499 8.1 1,750

Over 20,000 … … … … … 449 7.3 2,690

Range of total income 1980–81	Total budget cost	Percentage of total cost	Average per tax unit^*
						£ million	Per cent.	£
Up to £2,000	…	…	…	…	…	53	3.5	37
£2,000–£4,000	…	…	…	…	…	219	1.2	41
£4,000–£5,000	…	…	…	…	…	136	8.9	49
£5,000–£6,000	…	…	…	…	…	156	10.1	62
£6,000–£8,000	…	…	…	…	…	289	18.8	68
£8,000–£10,000	…	…	…	…	…	203	13.2	75
£10,000–£15,000	…	…	…	…	…	212	13.8	97
£15,000–£20,000	…	…	…	…	…	115	7.4	240
Over £20,000	…	…	…	…	…	156	10.1	485
^* A tax unit includes married couples counted as 1 unit, The figures are averaged over all tax units who would be liable to tax at 1979–80 allowances.

Range of total income 1980–81	Allowable mortgage interest	Percentage of total allowable interest	Average allowable interest per mortgagor
£	£million	Per cent.	£
Up to 2,000	…	…	…	…	…	35	0.6	620
2,000 to 4,000	…	…	…	…	…	194	3.1	710
4,000 to 5,000	…	…	…	…	…	265	4.3	810
5,000 to 6,000	…	…	…	…	…	490	7.9	880
6,000 to 8,000	…	…	…	…	…	1,296	21.0	950
8,000 to 10,000	…	…	…	…	…	1,236	20.0	1,010
10,000 to 15,000	…	…	…	…	…	1,708	27.7	1,360
15,000 to 20,000	…	…	…	…	…	499	8.1	1,750
Over 20,000	…	…	…	…	…	449	7.3	2,690