Taxation (Hansard, 16 March 1987)

§ Mr. Meacher
asked the Chancellor of the Exchequer if he will publish a table which sets out for a two child family on (a) half average earnings, (b) three-quarters average earnings, (c) average earnings, (d) one and a half average earnings, (e) twice average earnings, (f) five times average earnings and (g) 10 times average earnings, the increase, in net income, to be derived from (i) a 1p cut in the standard rate of income tax, (ii) an increase in personal allowance, over and above indexation, which incurred the same cost as a 1p cut in standard rate income tax, (iii) an increase in child benefit which incurred the same cost as a 1p cut in standard rate income and (iv) an increase in income tax thresholds which incurred the same cost as a 1p cut in the standard rate of income tax, in 1986–87.

§ Mr. Norman Lamont
Information based on full year direct revenue or expenditure cost at forecast 1987–88 levels is in the table. The income tax calculations assume that all the main personal allowances would be increased by the same percentage. Each of the measures would have. a cost of about £1,300 million in a full year at 1987–88 income levels. The income tax changes are compared with the 1986–87 tax regime indexed according to the statutory provisions. It has also been assumed that the only income: tax allowance or relief available to the married couple is the married man's allowance and that the wife has no earnings.
389W
¹ Average earnings assumed to be £227.30 per week, an increase of 6.5 per cent. on 1986–87 in line with the assumptions used by the Government Actuary for reviewing National Insurance contributions (paragraph 3.02 of the Autumn Statement 1986)
² Assuming a corresponding change in supplementary benefit rates.
³ Assuming no change in supplementary benefit rates.
⁴ Including all higher rate thresholds.

§ Mrs. Roe
asked the Chancellor of the Exchequer if he will list (a) the number of married women whose investment income was assessed to tax as that of their husbands' during the tax years 1982–83, 1983–84, and 1984–85, (b) the total gross income so assessed in each year and (c) the tax received thereon.

§ Mr. Norman Lamont
I shall let my hon. Friend have a reply as soon as possible.