HC Deb 11 February 1993 vol 218 cc736-9W
Mr. Frank Field

To ask the Chancellor of the Exchequer if he will update the information given in his answer to the hon. Member for Islington, South and Finsbury (Mr. Smith), 13 February,Official Report, columns 123–24, on income distribution.

Mr. Dorrell

The latest estimates are given in the tables. Estimates of income are based on information reported to tax offices and collected through annual surveys of personal incomes. For years before 1985–86, estimates exclude employees' contributions to occupational pension schemes and some investment income on which tax is deducted at source. For years up to and including 1989–90, married couples are counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990–91 onwards, husbands and wives are counted separately. Estimates are based on the surveys of personal incomes for years up to 1990–91 and projections of the 1990–91 survey for subsequent years; the latter are therefore provisional.

Group of taxpayers1
Top 1 per cent. Top 5 per cent. Top 10 per cent. Top 25 per cent. Bottom 70 per cent. All taxpayers
Year Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion Share per cent. Amount £ billion
1986–87 5.8 14 12.3 29 16.9 39 26.0 61 14.5 34 42.8
1987–88 6.6 15 13.7 30 18.5 41 28.0 62 14.9 33 45.4
1988–89 6.8 15 14.3 31 19.4 42 29.1 63 14.9 32 46.5
1989–90 7.8 15 16.6 31 22.6 42 34.0 64 16.7 31 53.4
1990–91 9.2 15 18.9 31 25.4 42 38.6 64 18.7 31 60.4
1991–922 9.6 15 19.8 31 26.6 42 40.3 64 19.4 31 63.1
1992–932 9.3 15 19.3 32 26.1 43 39.5 65 17.9 30 60.6
1 Married couples and single people for years prior to 1990–91.
2 Provisional.

Mr. Frank Field

To ask the Chancellor of the Exchequer (1) if he will list the amount and share of income going to(a) the top 1 per cent., (b) the next 2 to 5 per cent., (c) the next 6 to 10 per cent. and (d) the next 10 to 20 per cent. and subsequent deciles; of tax units for each year since 1978–79, revalued at 1978–79 prices;

(2) if he will list the tax take for (a) the top 1 per cent., (b) the next 2 to 5 per cent., (c) the next 6 to 10 per cent. and (d) the next 10 to 20 per cent. and subsequent deciles; of income groups for each year since 1978–79, revalued at 1978–79 prices.

Mr. Dorrell

Readily available estimates are in the income table. For 1978–79 and 1989–90, married couples counted as one taxpayer and their incomes are combined. Following the introduction of independent taxation, for 1990–91 onwards, husbands and wives are counted separately. The estimates of total income relate to income subject to income tax and excludes non-taxable income such as certain social security benefits.

1978–79
Quantile group of taxpayers1 Tax liability Total income Percentage of total income
Per cent. £ million £ million
Top 1 2,300 500 5
1–5 2,600 9,900 10
5–10 2,100 9,300 9
10–20 3,200 15,000 15
20–30 2,500 12,600 12
30–40 2,100 11,000 11
40–50 1,700 9,600 9
50–60 1,400 8,500 8
60–70 1,100 7,300 7
70–80 780 6,000 6
80–90 430 4,900 5
Bottom 10 130 3,700 4
All taxpayers 20,300 102,800 100

1989–902
Quantile group of taxpayers1 (Per cent.) Tax liability (£ million) Total income (£ million) Percentage of total income
Top 1 3,400 10,500 8
1–5 3,800 16,300 12
5–10 2,600 13,800 9
10–20 3,600 20,900 15
20–30 2,600 16,000 11
30–40 2,000 13,700 10
40–50 1,600 11,800 8
50–60 1,300 10,200 7
60–70 1,000 8,800 6
70–80 760 7,700 5

Quantile group of taxpayers1 (per cent.) Tax liability (£ million) Total income (£ million) Percentage of total income
80–90 470 6,200 4
Bottom 10 170 4,800 3
All taxpayers 23,300 140,800 100

1990–912
Quantile group of taxpayers1 Tax liability Total income Percentage of total income
Per cent. £ million £ million
Top 1 3,700 11,300 8
1–5 3,800 16,000 11
5–10 2,600 13,500 10
10–20 3,800 20,900 15
20–30 2,700 16,500 12
30–40 2,100 14,100 10
40–50 1,700 12,000 9
50–60 1,300 10,400 7
60–70 1,000 9,000 6
70–80 710 7,600 5
80–90 410 6,100 4
Bottom 10 130 4,800 3
All taxpayers 24,000 142,300 100

1991–922
Quantile group of taxpayers1 Tax liability Total income Percentage of total income
Percentage £ million £ million
top 1 3,600 11,100 8
1–5 3,900 15,900 11
5–10 2,600 13,400 10
10–20 3,700 20,600 15
20–30 2,700 16,500 12
30–40 2,100 13,900 10
40–50 1,700 11,800 9
50–60 1,300 10,200 7
60–70 1,000 8,700 6
70–80 700 7,300 5
80–90 400 5,900 4
Bottom 10 130 4,700 3
All taxpayers 23,900 140,000 100
1 Tax units for years prior to 1990–91.
2 In 78–79 prices.

1992–932
Quantile group of taxpayers1 Tax liability Total income Percentage of total income
Per cent. £ million £ million
Top 1 3,400 10,500 8
1–5 3,700 15,200 11
5–10 2,500 12,900 10
10–20 3,600 20,900 15
20–30 2,600 16,000 12
30–40 2,000 13,500 10
40–50 1,500 11,400 9
50–60 1,200 9,800 7
60–70 870 8,400 6
70–80 580 7,000 5
80–90 300 5,600 4
Bottom 10 100 4,500 3
All taxpayers 22,200 134,800 100

Percentage of total tax liability Quantile group of taxpayers1
Year Top 1 Per cent. 1–5 Per cent. 5–10 Per cent. 10–20 Per cent. 20–30 Per cent. 30–40 Per cent. 40–50 Per cent. 50–60 Per cent. 60–70 Per cent. 70–80 Per cent. 80–90 Per cent. Bottom 10 Per cent.
1977–78 12 13 10 15 12 10 8 7 6 4 3 1
1978–79 11 13 11 16 12 10 9 7 5 4 2 1
1979–80 10 13 10 16 12 10 9 7 6 4 2 1
1980–81 11 14 10 16 12 10 9 7 5 3 2 1
1981–82 11 14 11 16 12 10 8 7 5 4 2 1
1982–83 12 14 11 16 12 10 8 7 5 4 2 1
1983–84 11 14 11 16 13 10 8 6 5 4 2 1
1984–85 12 15 11 16 12 10 8 6 5 4 2 1
1985–86 13 14 11 15 12 10 8 6 5 4 2 1
1986–87 14 15 11 15 12 9 8 6 5 3 2 1
1987–88 15 16 10 15 11 9 7 6 5 3 2 1
1988–89 15 16 11 15 11 9 7 6 5 3 2 1
1989–90 15 17 11 15 11 9 7 6 4 3 2 1
1990–91 15 16 11 16 11 9 7 6 4 3 2 1
21991–92 15 16 11 16 11 9 7 6 4 3 2 1
21992–93 15 17 11 16 12 9 7 5 4 3 1 0
1 Tax units for years prior to 1990–91.
2 Provisional.