Tax and National Insurance Revenue (Hansard, 2 December 1997)

§ Helen Jones
To ask the Chancellor of the Exchequer what estimates he has made of the average tax and national insurance revenue generated each year by(a) a full-time job and (b) a part-time job. [16895]

§ Dawn Primarolo
[holding answer 20 November 1997]: In 1995–96, the latest financial year for which final receipts are available, the total revenue for income tax was £68,049 million and the total number of income tax payers was 25.8 million, giving an average income tax contribution of £2,640 per annum. The total revenue from national insurance contributions in 1994–95, the latest year for which the number of people paying contributions is available, was £37,863 million and the total number of people who paid contributions was 24.2 million, giving an average national insurance contribution of £1,565. It is not recorded whether these contributions were for full or part-time work.

§ Mr. Webb
To ask the Chancellor of the Exchequer pursuant to his answer of 13 November 1997,Official Report, columns 620–21, what would be the effect on the number of people of working age who face combined marginal rates of withdrawal of tax, national insurance contributions and means-tested benefits of (a) under 50 per cent., (b) 50 to 59 per cent., (c) 60 to 69 per cent., (d) 70 to 79 per cent., (e) 80 to 89 per cent. and (f) 90 per cent. or above of introducing a 10 pence starting rate of income tax on (i) the first £1,000, (ii) the first £1,500 and (iii) the first £2,000 of taxable income if no other changes were made to the tax and benefit system. [16900]

§ Dawn Primarolo
[holding answer 20 November 1997]: As the Chancellor has made clear, the Government are determined that the working poor should benefit from any move to a 10p income tax rate. They are therefore considering what action is necessary on tapers and other features of the benefit system to ensure that a lower starting rate of income tax benefits all the low-paid.

§ Mr. Jack
To ask the Chancellor of the Exchequer if tax payers on the basic or higher rates of tax will benefit fully from the reduction in tax to be paid upon the introduction of a 10p starting rate of tax. [18412]

§ Dawn Primarolo
[holding answer 1 December 1997]: When the Chancellor introduces a 10p rate of tax, anyone whose starting rate of tax becomes 10p will benefit from its introduction.