§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is the average individual cumulative gain(a) in current prices and (b) in 1990–91 prices to those earning (i) £5,000, (ii) £10,000, (iii) £15,000, (iv) £20,000, (v) £25,000, (vi) £30,000, (vii) £40,000, (viii) £50,000, (ix) £60,000 and (x) £70,000 as a result of changes in taxation and national insurance since 1979.
§ Mr. Maples[holding answer 23 July 1990]: Estimates of the annual change in liability resulting from the changes in income tax rates, allowances, and thresholds and national insurance contribution rates and limits are in the table. The estimates are based on a provisional 1990–91 income base projected from the 1987–88 survey of personal incomes. National insurance contribution limits for 1978–79 have been indexed by the change in the RPI between October 1977 and October 1989. The 1978–79 income tax regime has been indexed to 1990–91 levels by reference to the statutory formula and allowing for independent taxation. The comparisons shown in the table between these indexed regimes and the 1990–91 tax and NIC regimes therefore reflect budgetary changes in rates and allowances, but not (i) any changes since 1978–79 in the definition of the income tax base nor (ii) the introduction of independent taxation.
For the purposes of these calculations, the indexed 1978–79 income tax and NIC regimes have been directly applied to the 1990–91 income base. In practice, retention of these regimes, indexed as appropriate, for the intervening years would have led to changes in the income base.
Average reduction in income tax and national insurance contributions per individual1 in 1990–91 compared with 1978–79 indexed regime Range of individual's income in 1990–91 (£) Average reduction at 1990–91 prices (£) Under 5,000 170 5,000 to 10,000 340 10,000 to 15,000 520 15,000 to 20,000 640 20,000 to 25,000 890 25,000 to 30,000 1,310 30,000 to 40,000 1,990 40,000 to 50,000 3,790 50,000 to 60,000 6,720
1984–85 £ million 1985–86 £ million 1986–87 £ million 1987–88 £ million 1988–89 £ million Grants in aggregate Exchequer finance 13,320 13,230 14,130 15,170 15,623 Other grants 6,250 6,575 7,203 7,575 7,235 Rates (net of all rebates) 12,953 13,881 15,702 17,120 18,904 Trading surpluses, interest and dividend 1,188 1,210 1,355 1,407 1,690 Rents 2,871 3,089 3,055 3,042 3,006 Borrowing from central Government (PWLB) 3,329 5,752 5,723 4,089 4,941 Borrowing from other sources -943 -4,078 -5,574 -2,801 -4,492 Other receipts -379 -243 408 -984 -140 Total income 38,589 39,416 42,002 44,618 46,767 The footnotes in table 21.4.13 of Cm. 1021 still apply except that "other grants" excludes the repayment of VAT and "other receipts" excludes the imputed income from non-trading capital.
As for a territorial breakdown I refer the hon. Member to my answer to his previous question about table 21.4.13.
548W
Range of individual's income in 1990–91 (£) Average reduction at 1990–91 prices (£) 60,000 to 70,000 10,110 Over 70,000 31,690 Total 760 1 Individuals paying either income tax or NIC under the 1978–79 indexed regime.