§ Mr. Ernie Ross
asked the Chancellor of the Exchequer (1) what has been the total value of the reduction in income tax payable by those earning £10,000 a year or more in 1979 in Scotland in the financial years for which figures are available; and if he will express figures at current prices;
(2) what is the current value of an average salary of £10,000 a year in 1979 in Scotland.
§ Mr. Peter Rees
Estimates of total income tax paid in Scotland are available only up to 1978–79, but the hon. Member may like to consider the change in 1979 and subsequently in the burden of income tax on an individual married man earning £10,000. At this level of income, tax payable—in Scotland as elsewhere in the United Kingdom—would have been 27.7 per cent. of gross income in 1978–79 and 23.6 per cent. in 1981–82. However, the current value of a salary of £10,000 is around £14,750—extrapolating to January 1981, the most recent month available, using a centred three-month moving average of the whole economy average earnings index, seasonally adjusted. At this level, 26.6 per cent. of gross income would be payable in tax in 1981–82.