HC Deb 14 April 1988 vol 131 cc225-6W
39. Mr. Chapman

To ask the Chancellor of the Exchequer what will be the effect of his Budget proposals on a man and wife over 80 years with an income in excess of £10,600 per annum.

Mr. Norman Lamont

The reduction in tax compared with 1987–88 will be as follows:

Income Reduction in tax
£ £ Per cent.
10,600 349 3.3
11,000 363 3.3
12,000 283 2.4
14,000 279 2.0

Above this level of income the reduction will be the same as for a non-aged couple. Calculations assume that the wife has no earnings or pension in her own right.

46. Ms. Armstrong

To ask the Chancellor of the Exchequer what is his estimate of the change in weekly income of a single parent, with two children, drawing supplementary benefit and child benefit, as a result of his Budget changes.

Mr. Norman Lamont

The Budget is about tax, so will not have a direct effect on the incomes of those who do not pay tax. A lone parent on supplementary benefit is unlikely to be directly affected by the Budget changes unless he or she takes a job in the course of the financial year. But, on average, a lone parent can expect income support to be about £4 a week higher than the supplementary benefit payable before the introduction of the social security reforms on 11 April.

51. Mr. Allen McKay

To ask the Chancellor of the Exchequer what is his estimate of the weekly gain of a single person earning £400,000 a year as a result of his Budget tax changes.

58. Mr. Flynn

To ask the Chancellor of the Exchequer what is his estimate of the weekly gain of a single person earning £350,000 a year from his Budget tax changes.

61. Mr. Darling

To ask the Chancellor of the Exchequer what is his estimate of the weekly gain of a single person earning £200,000 a year from his Budget tax changes.

62. Mr. Fisher

To ask the Chancellor of the Exchequer what is his estimate of the weekly gain of a single person earning £250,000 a year as a result of his Budget tax changes.

Mr. Norman Lamont

The table shows the gains from the Budget at each of the specified levels of earnings, assuming that there is no other income. The figures refer only to income tax and assume that the taxpayer is entitled to no income tax reliefs or allowances other than the single person's allowance. The calculations are made by comparing income tax liabilities under the 1987–88 income tax regime with those under the Budget proposal for 1988–89.

Gross yearly earnings £000s Gain from income tax changes £ per week
200 656.54
250 848.85
350 1,233.46
400 1,425.77