HC Deb 01 November 1993 vol 231 c20W
Mr. Dewar

To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Birkenhead (Mr. Field) on 19 April,Official Report, columns 6–7, if he will publish estimates for 1994–95 based on the assumption of statutory indexation and including measures already announced in the 1993 Budget.

Mr. Dorrell

Latest estimates of the annual change in income tax liability in 1994–95, assuming statutory indexation and inclusion of measures already announced, are in the table. The 1978–79 income tax regime has been indexed to 1994–95 levels by reference to the statutory formula and allowing for independent taxation.

For the purposes of these calculations the indexed regime of 1978–79 is applied directly to the income base of 1994–95. In practice, retention of the regime indexed as appropriate, for the intervening years would have led to changes in the income base.

Average reduction in income tax per individual1 in 1994–95 compared with the 1978–79 indexed regime
Range of individual's income in 1994–95 Number of individuals 1994–951 Total reduction Average reduction
(£) (million) (£ million) (£ per annum)
Under 5,000 3.1 420 140
5,000 to 10,000 8.2 3,100 380
10,000 to 15,000 6.1 4,200 700
15,000 to 20,000 4.0 4,100 1,020
20,000 to 30,000 3.3 5,100 1,510
30,000 to 50,000 1.5 3,400 2,240
50,000 to 80,000 0.33 2,400 7,250
Over 80,000 0.19 9,000 47,300
Total 26.6 31,700 1,190
1 Individuals liable to income tax under the 1978–79 indexed regime.

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