§ Mrs. Beckett
To ask the Chancellor of the Exchequer if he will publish a table showing the percentage of gross earnings going in(a) income tax, (b) national insurance contributions, (c) VAT, (d) other indirect taxes and (e) the poll tax, of (i) a single person, (ii) a married couple both working, and (iii) a married couple with two children, on (1) 50 per cent., (2) 75 per cent., (3) 100 per cent., (4) 150 per cent., (5) 200 per cent., (6) 500 per cent. and (7) 1,000 per cent. of average earnings in each year since 1978–79
§ Mr. Maude
[holding answer 19 November 1991]: Figures for 1978–79 to 1987–88 have been placed in the Library of the House, as noted in the Official Report, 13 April 1989, column 624. Figures for 1988–89 and 1989–90 were published in the Official Report, 5 July 1990, columns 699–702. Updated figures for 1990–91 and the latest estimates for 1991–92 are given in the tables.175W
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. These are estimated to be £307.00 per week in 1990–91 and £330.80 per week in 1991–92, using the Government Actuary's Department's assumption of 7¾ per cent. growth in whole economy underlying earnings over 1990–91 as published in the 1991 autumn statement.
5. The estimates of indirect taxes are based on equations derived from the 1985 family expenditure survey, uprated to later years using forecasts of aggregate tax receipts. They 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 the same composition and similar incomes and estimated payments of VAT and other indirect taxes 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 estimates obtained from family expenditure surveys for different years.
6. It has not been possible to make satisfactory estimates of the burden of the community charge in the absence of sample survey results, which would enable actual payments net of adjustments arising the community charge reduction scheme etc. to be related to earnings.