Earned and Unearned Income

HC Deb 16 June 1969 vol 785 cc61-2W

Mr. Whitaker

asked the Chancellor of the Exchequer what are the comparable rates of increase in earned and unearned income, respectively in each of the last 10 years.

Mr. Harold Lever

The following table shows the percentage changes in net earned and net investment income of individuals as recorded in the Income Surveys for the years 1962–63 to 1966–67—published in the Annual Reports of the Commissioners of Inland Revenue. This is the only period for which yearly increases are available.

Percentage change over previous year	Net earned income	Net investment income
1963–64	+ 4.0	- 3.6
1964–65	+ 8.3	+12.3
1965–66	+ 8.7	+16.2
1966–67	+ 5.2	-11.5
Average from 1962–63 to 1966–67	+ 6.5	+ 2.7

Notes on table:

Net earned income and net investment income are as defined for tax, for example, they are before payment of tax but after deducting allowable expenses from earned income; pensions are included in the figures of earned income; incomes below the effective exemption limits in each year are excluded.