HC Deb 19 April 1988 vol 131 cc419-21W
Mr. Clay

To ask the Chancellor of the Exchequer what was the average individual gain arising from each relevant

Gains (£ per week) from the main income tax proposals in the 1988 Budget
Multiples of average earnings1
½ ¾ 1 1½ 2 5 10
Single person (Non.aged)
Current prices: change in personal allowances 0.93 0.93 0.93 0.93 1.56 2.08 2.08
basic rate limit — — — — 3.50 3.50 3.50
reduction in basic rate 1.45 2.67 3.89 6.34 7.42 7.42 7.42
abolition of higher rates above 40 per cent. — — — — 2.35 119.01 363.71
Total2 2.38 3.60 4.83 7.27 14.83 132.01 376.71
Net of indexation: change in personal allowances 0.47 0.47 0.47 0.47 0.78 1.04 1.04
basic rate limit — — — — 1.75 1.75 1.75
reduction in basic rate 1.45 2.67 3.89 6.34 7.42 7.42 7.42
abolition of higher rates above 40 per cent. — — — — 1.58 114.49 359.19
Total2 1.91 3.14 4.36 6.81 11.53 124.70 369.40
Married Man (Non.aged)
Current prices: change in personal allowances 1.56 1.56 1.56 1.56 2.60 3.46 3.46
basic rate limit — — — — 3.50 3.50 3.50
reduction in basic rate 0.87 2.10 3.32 5.77 7.42 7.42 7.42
abolition of higher rate above 40 per cent. — — — — 0.92 113.28 357.98
Total2 2.43 3.65 4.88 7.32 14.44 127.66 372.36
Net of indexation: change in personal allowances 0.78 0.78 0.78 0.78 1.30 1.73 1.73
basic rate limit — — — — 1.75 1.75 1.75
reduction in basic rate 0.87 2.10 3.32 5.77 7.42 7.42 7.42
abolition of higher rate above 40 per cent. — — — — 0.15 108.76 353.46
Total2 1.65 2.87 4.10 6.54 10.62 119.66 364.36
1 Full time adult males (all occupations) forecast earnings for 1988–89 £244.70 week.
2 Due to rounding, components may not sum to total.

Gains (£ per week), net of indexation, from the main income tax proposals1 in all budgets from 1979 to 1988, at 1988–89 income levels
Multiples of average earnings1
½ ¾ 1 1½ 2 5 10
Single Person (non-aged)
change in:
personal allowances 2.98 2.98 2.98 2.98 4.52 7.50 7.50
reduced rate band -2.54 -2.54 -2.54 -2.54 -2.54 -2.54 -2.54
basic rate limit — — — — 2.56 2.56 2.56
reduction in basic rate 5.78 10.67 15.57 25.36 29.69 29.69 29.69
higher rates and thresholds — — — — 4.12 232.79 758.90
Total3 6.22 11.12 16.01 25.80 38.35 270.01 796.11
Married man (non-aged) change in:

component of the 1988 Budget, both at current prices and net of indexation for those at (a) one half, (b) three quarters of average, (c) average, (d) one and a half, (e) two, (f) five and (g) 10 times average earnings; and if he will provide comparable figures for each Budget since 1979.

Mr. Norman Lamont

[holding answer 30 March 1988]: Information is in the tables. Further information could be supplied only at disproportionate cost. Average earnings are those for men in all occupations paid at adult rates who work a full week and whose pay is unaffected by absence. The level of average earnings for 1988–89, £244.70 per week, is a projection in accordance with the assumptions given to the Government Actuary for reviewing national insurance contributions in paragraph 3.02 of the Autumn Statement 1987; estimates are therefore provisional.

Multiples of average earnings1
½ ¾ 1 1½ 2 5 10
personal allowances 4.89 4.89 4.89 4.89 6.97 12.29 12.29
reduced rate band -2.54 -2.54 -2.54 -2.54 -2.54 -2.54 -2.54
basic rate limit — — — — 2.56 2.56 2.56
reduction in basic rate 3.49 8.38 13.28 23.06 29.69 29.69 29.69
higher rate and thresholds — — — — 1.69 220.47 746.58
Total 3 5.84 10.73 15.62 25.41 38.37 262.48 788.58
1 Excluding abolition of investment income surcharge
2 Full time adult maleds (all occupations) forecast earnings for 1988–89 £244.70 per week.
3 Due to rounding, components may not sum to total.

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