§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will publish in theOfficial Report up-to-date figures on the same basis as those provided to the hon. Member for Hornchurch (Mr. Squire) in the Official Report, 10 January 1989, columns 633–56.
§ Mr. LilleyFigures for 1978–79 to 1988–89 were placed in the Library of the House earlier this year (as noted inOfficial Report 13 April 1989, column 624). Revised estimates for 1988—89, and estimates for 1989–90 were given in reply to the hon. Member for Oldham, West (Mr. Meacher) on 1 December 1989 (Official Report, col. 464). I regret that those estimates for 1988–89 for a married man with two children contained an error. The amended tables are below.
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Multiples of average earnings 0.5 0.75 1 1.5 2 3 4 5 7 10 20 Percentage of earnings Income tax 0.0 8.2 12.4 16.6 19.1 22.5 25.4 28.2 31.6 34.1 37.0 NICS 6.2 8.2 8.2 9.0 9.0 7.1 5.4 4.3 3.1 2.1 1.1 VAT — 5.1 5.4 5.6 — — — — — — — Other indirect — 10.2 9.0 7.7 — — — — — — — Domestic rates — 4.8 3.9 2.9 — — — — — — — Total 6.2 36.5 38.9 41.8 28.0 29.7 30.7 32.5 34.6 36.2 38.1 Married, 2 children Amounts, £ per week Income tax -2.15 13.87 29.89 61.93 103.37 205.89 308.41 409.93 615.97 923.53 1,948.73 NICS 11.53 17.30 23.07 27.45 27.45 27.45 27.45 27.45 27.45 27.45 27.45 VAT — 8.69 12.76 21.59 — — — — — — — Other indirect — 16.67 19.71 26.33 — — — — — — — Domestic rates — 7.42 8.85 11.96 — — — — — — — Total 9.38 63.95 94.28 149.26 130.82 233.34 335.86 437.38 643.42 950.98 1,976.18 Percentage of earnings Income tax -1.7 7.2 11.7 16.1 20.2 26.8 30.1 32.0 34.3 36.0 38.0 NICS 9.0 9.0 9.0 7.1 5.4 3.6 2.7 2.1 1.5 1.1 0.5 VAT — 4.5 5.0 5.6 — — — — — — — Other indirect — 8.7 7.7 6.8 — — — — — — — Domestic rates — 3.9 3.5 3.1 — — — — — — — Total 7.3 33.3 36.9 38.7 25.5 30.3 32.8 34.1 35.9 37.1 38.6 560W561W
Income tax, NICS and indirect tax payments at multiples of average earnings—1989–90 Multiples of average earnings 0.5 0.75 1 1.5 2 3 4 5 7 10 20 Single Amounts, £ per week Income tax 21.61 39.11 56.61 91.61 142.87 254.87 366.87 478.87 702.87 1,038.87 2,158.87 NICS 11.10 17.40 23.70 27.74 27.74 27.74 27.74 27.74 27.74 27.74 27.74 VAT — 10.59 14.22 22.16 — — — — — — — Other indirect — 15.96 19.96 28.72 — — — — — — — Domestic rates — 8.42 10.25 14.25 — — — — — — — Total 32.71 91.48 124.74 184.48 170.61 282.61 394.61 506.61 730.61 1,066.61 2,186.61 Amounts 1988–89 prices Income tax 20.10 36.38 52.66 85.22 132.90 237.09 341.27 445.46 653.83 966.39 2,008.25 NICS 10.33 16.19 22.05 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 VAT — 9.85 13.23 20.61 — — — — — — — Other indirect — 14.85 18.57 26.72 — — — — — — — Domestic rates — 7.83 9.53 13.26 — — — — — — — Total 30.43 85.10 116.04 171.61 158.71 262.89 367.08 471.27 679.64 992.20 2,034.06 Percentage of earnings Income tax 15.4 18.6 20.2 21.8 25.5 30.3 32.8 34.2 35.9 37.1 38.6 NICS 7.9 8.3 8.5 6.6 5.0 3.3 2.5 2.0 1.4 1.0 0.5 VAT .— 5.0 5.1 5.3 — — — — — — — Other indirect — 7.6 7.1 6.8 — — — — — — — Domestic rates — 4.0 3.7 3.4 — — — — — — — Total 23.4 43.6 44.6 43.9 30.5 33.6 35.2 36.2 37.3 38.1 39.0 Married, no children Amounts, £ per week Income tax 13.97 31.47 48.97 83.97 130.63 242.63 354.63 466.63 690.63 1,026.63 2,146.63 NICS 11.10 17.40 23.70 27.74 27.74 27.74 27.74 27.74 27.74 27.74 27.74 VAT — 9.73 13.69 22.33 — — — — — — — Other indirect — 17.67 21.68 30.42 — — — — — — — Domestic rates — 8.22 9.55 12.45 — — — — — — — Total 25.07 84.49 117.59 176.91 158.37 270.37 382.37 494.37 718.37 1,054.37 2,174.37 Amounts 1988–89 prices Income Tax 13.00 29.27 45.55 78.11 121.52 225.70 329.89 434.07 642.45 955.00 1,996.87 NICS 10.33 16.19 22.05 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 VAT — 9.05 12.73 20.77 — — — — — — — Other indirect — 16.44 20.17 28.30 — — — — — — —
Multiples of average earnings 0.5 0.75 1 1.5 2 3 4 5 7 10 20 Domestic rates — 7.65 8.88 11.58 — — — — — — — Total 23.32 78.60 109.39 164.57 147.32 251.51 355.69 459.88 668.25 980.81 2,022.67 Percentage of earnings Income tax 10.0 15.0 17.5 20.0 23.3 28.9 31.7 33.3 35.2 36.7 38.3 NICS 7.9 8.3 8.5 6.6 5.0 3.3 2.5 2. 1.4 1. 0.5 VAT — 4.6 4.9 5.3 — — — — — — — Other indirect — 8.4 7.7 7.2 — — — — — — — Domestic rates — 3.9 3.4 3.0 — — — — — — — Total 17. 9 40.2 42.0 42.1 28.3 32.2 34.1 35.3 36.7 37.7 38.8 Married, both working Amounts, £ per week Income Tax 0.58 18.08 35.58 70.58 109.21 191.08 286.28 397.73 621.73 957.73 2,077.73 NICS 9.59 15.89 22.19 34.79 46.40 55.49 55.49 55.49 55.49 55.49 55.49 VAT — 10.96 15.25 23.83 — — — — — — — Other indirect — 20.40 24.00 31.19 — — — — — — — Domestic rates — 10.10 10.78 12.15 — — — — — — — Total 10.17 75.43 107.80 172.54 155.61 246.57 341.77 453.22 677.22 1,013.22 2,133.22 Amounts 1988–89 prices Income tax 0.54 16.82 33.10 65.66 101.59 177.75 266.31 369.98 578.35 890.91 1,932.77 NICS 8.92 14.78 20.64 32.36 43.16 51.62 51.62 51.62 51.62 51.62 51.62 VAT — 10.20 14.19 22.17 — — — — — — — Other indirect — 18.98 22.33 29.01 — — — — — — — Domestic rates — 9.40 10.03 11.30 — — — — — — — Total 9.46 70.17 100.28 160.50 144.75 229.37 317.93 421.60 629.97 942.53 1,984 .39 Percentage of earnings Income tax 0.4 8.6 12.7 16.8 19.5 22.7 25.6 28.4 31.7 34.2 37.1 NICS 6.9 7.6 7.9 8.3 8.3 6.6 5.0 4.0 2.8 2.0 1.0 VAT — 5.2 5.4 5.7 — — — — — — — Other indirect — 9.7 8.6 7.4 — — — — — — — Domestic rates — 4.8 3.9 2.9 — — — — — — — Total 7.3 35.9 38.5 41.1 27.8 29.4 30.5 32.4 34.6 36.2 38.1 Married, 2 children Amounts, £ per week Income tax -0.53 16.97 34.47 69.47 116.13 228.13 340.13 452.13 676.13 1,012.13 2,132.13 NICS 11.10 17.40 23.70 27.74 27.74 27.74 27.74 27.74 27.4 27.74 27.74 VAT — 9.60 14.08 23.87 — — — — — — — Other indirect — 17.36 20.58 27.64 — — — — — — — Domestic rates — 808 9.65 13.07 — — — — — — — Total 10.57 69.41 102.48 161.79 143.87 255.87 367.87 479.87 703.87 1,039.87 2,159.87 Amounts 1988–89 prices Income tax -0.49 15.79 32.07 64.62 108.03 212.21 316.40 420.59 628.96 941.52 1,983.38 NICS 10.33 16.19 22.05 25.80 25.80 25.80 25.80 25.80 25.80 25.80 25.80 VAT — 8.93 13.10 22.20 — — — — — — — Other indirect — 16.15 19.14 25.71 — — — — Domestic rates — 7.52 8.98 12.16 — — — — — — — Total 9.83 64.57 95.33 150.50 133.83 238.02 342.20 446.39 654.76 967.32 2,009.18 Percentage of earnings Income Tax -0.4 8.1 12.3 16.5 20.7 27.2 30.4 32.3 34.5 36.1 38.1 NICS 7.9 8.3 8.5 6.6 5.0 3.3 2.5 2.0 1.4 1.0 0.5 VAT — 46 50 5.7 — — — — — — — Other indirect — 8.3 7.4 6.6 — — — — — — — Domestic rates — 3.8 3.4 3.1 — — — — — — — Total 7.6 33.1 36.6 38.5 25.7 30.5 32.8 34.3 35.9 37.1 38.6 Notes to tables
1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances. Earners, including working wives, are assumed to pay Class 1 NI contributions at the contracted in rate. The figures for NI contributions are financial year averages.
2. The two earner married couple is assumed to have combined earnings equal to the various multiples of average earnings. In calculating disposable income it is assumed that these earnings are split between husband and wife in the ratio 60:40.
3. For the married couple with two children, child benefit is treated as a negative income tax.
4. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence.
562W563WThese were £256.30 per week in 1988–89, and estimated to be £280.00 per week in 1989–90, using the Government Actuary Department's assumption of 91 per cent. growth over 1988–89 as published in the 1989 Autumn Statement.
5. The estimates of indirect taxation are derived from the 1985 family expenditue survey, and are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households with similar incomes and composition, and estimated payments of VAT, other indirect taxes and rates are therefore approximate, even within the income range for which figures are shown. Outside this range the margin of error is even higher and reliable estimates cannot be made. Because of sampling variation, there can be substantial differences between the estimates obtained from family expenditure surveys for different years.
6. 1989–90 figures are converted into 1988–89 prices by assuming that the RPI is 71/2 per cent. higher in 1989–90 than the previous financial year. This is consistent with the forecasts published in the 1989 Autumn Statement.