§ Mr. Ripponasked the Chancellor of the Exchequer what pre-tax and post-tax income would now be required to provide the same standard of living as that enjoyed in 1966 by a married man with three children under 11 years of age and a £6,000 mortgage on a gross income of £3,500 a year.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 10th November 1977; Vol. 938, c. 192], gave the following information
Assuming that in both 1966–67 and 1977–78 a new mortgage had been taken, that the average interest rates payable in each year were 7⅛ per cent. and 9½per rent., respectively, and that the interest was allowable as a deduction in both years, the figures would be as follows:
1966–67 Equivalent in 1977–78 Net income … 2,294 6,953 Equivalent gross income … 3,500 10,608 The net income in 1977–78 would provide the same purchasing power as that in 1966–67, on the basis of the change in the general index of retail prices—all items—up to September 1977, the latest month for which a figure is available. The calculations of tax take account of mortgage interest relief, personal and child tax allowances, national insurance contributions, family allowances and child benefit as appropriate, and of the Chancellor's proposals of 26th October 1977.