§ 5. Mr. Gwilym Robertsasked the Chancellor of the Exchequer what estimates are available for the benefit in monetary and percentage terms obtained from the
INCREASE IN NET FAMILY INCOME* AS COMPARED WITH 1976–77 Earnings (excluding family allowances or child benefit) A. After initial Budget changes only B. After all Budget changes† £ £ percentage £ percentage 2,000 … … … … 64.60 3.36 72.78 3.79 3,000 … … … … 64.60 2.51 92.78 3.61 4,000 … … … … 64.60 2.00 112.78 3.50 5,000 … … … … 64.60 1.67 132.78 3.43 10,000 … … … … 317.25 4.76 437.25 6.57 25,000 … … … … 762.28 7.11 882.28 8.23 * Income including child benefit/family allowances less income tax. It is assumed that income is all earned income and that both children are under 11. † i.e. including the reduction in the basic rate of income tax to 33 per cent.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer, in view of the decline in real disposable income per head by 1.2 per cent. last year compared with 1975, and the fall of 0.7 per cent. in real personal disposable income in 1975, what action he has taken or proposes taking to reverse this trend and restore the position to that prior to 1975.
§ Mr. Robert SheldonIn recent years our real national disposable income has declined because of adverse changes in the world terms of trade for which we have failed to compensate by increasing our gross national product. The main method open to the Government to influence directly the impact of that trend on real personal disposable income is through the level of personal taxation, and the Budget contained measures to reduce this. But in the long term the only secure foundation for steadily increasing real personal disposable income is to conquer inflation and to achieve a sustained improvement in our industrial performance, both objectives to which the Government remain firmly committed. There is no alternative route through immoderate cash increases in gross pay, which would quickly lose their real value.