§ Mr. Marcus Montgomeryasked the Chancellor of the Exchequer what is the average amount of income tax paid by the average family in 1977–78; and what it was in 1973–74.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 15th July 1977; Vol 935, c. 289], gave the following information
Taking as the average family a married man on average earnings with two children not over 11 years of age the figures are:
Average earnings (1) £ 1977–78 … … … 4,139 1973–74 … … … 2,179 Income tax payable (2) £ 1977–78 … … … 843 1973–74 … … … 333 (1) Average earnings in 1973–74 have been taken to be the annual equivalent of the New Earnings Survey estimate of the average earnings of full-time adult male workers in all occupations (manual and non-manual) in April 1973. For 1977–78 the April 1976 NES estimate has been updated to April 1977 by the monthly index of average earnings.
476W(2) For 1973–74 the income tax payable includes tax on family allowance and claw-back. For 1977–78 it takes account of the proposed changes announced in the Chancellor's statement of 15th July.