§ Mr. AllenTo ask the Chancellor of the Exchequer what was the average income for a family of four in Nottinghamshire, or the nearest corresponding region, included in or including Nottinghamshire for which figures are available; and what proportion of that income is spent on tax, including value added tax and national insurance in each year since 1988.
§ Mr. Nelson[holding answer 18 May 1993]: The table shows the available information—average household income, and income tax and employees' national insurance contributions as percentages of household income per household, for Nottinghamshire, for the calendar years 1988 to 1990.
Household income for Nottinghamshire 1988 1989 1l990 Household income per household (£ per year) 15,890 17,337 18,856 Income tax as percentage of household income 14.0 12.3 12.6 Employees' national insurance contributions as percentage of household income 4.0 3.4 2.4 1 Provisional Notes:
1. Total household income based on the National Accounts definition of household income.
2. County estimates consistent with the date to be published in the Regional Accounts article in the May 1993 issue of "Economic Trends", and the national estimates published in the 1992 Blue Book.
3. County breakdown of income tax based on sample survey of Inland Revenue records, and employees' national insurance contributions based on sample of records held by Department of Social Security. Estimates at this level of detail are prone to large sampling errors.
Source: Central Statistical Office.
§ Mr. AllenTo ask the Chancellor of the Exchequer what is the proportion of income paid in tax, including national insurance and VAT, paid by a family with two children and earnings of(a) £10,000, (b) £15,000, (c) £20,000 and (d) £45,000 in each of the last five years.
§ Mr. Nelson[holding answer 18 May 1993]: The figures are given in the table.
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Total tax payments as a proportion of income for married couple with two children, 1988–89 to 1992–93 Per cent, of earnings £10,000 £15,000 £20,000 £45,000 1988–89 37.0 39.7 39.4 44.4 1989–90 35.0 38.3 38.8 43.5 1990–91 33.2 37.0 38.2 42.9 1991–92 33.4 37.3 39.2 42.7 1992–93 31.7 36.1 38.2 42.2 Notes:
1. Income tax payments are calculated on the assumption that the households only have income from employment, receive no tax reliefs other than the standard allowances and have one earner, who is assumed to pay class 1 NI contributions at the contracted-in rate.
2. The estimates of indirect taxes exclude rates/Community Charge and 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.