HC Deb 22 January 1979 vol 961 cc27-32W
Mr. Rooker

asked the Chancellor of the Exchequer if he will list in the

Mr. Tebbit

asked the Chancellor of the Exchequer if he will list the number of people with (a) pre-tax incomes and (b) post-tax incomes of less than £999, in each income band of £1,000 between £1,000 and £25,000 and greater than £25,000 giving in each case the figure as a percentage of the total, in 1976–77 and 1977–78.

Mr. Robert Sheldon

, pursuant to his reply [Official Report, 18 January 1979; Vol. 960, c. 864], gave the following answer:

Information is not yet available for 1977–78. The latest figures available re-late to 1976–77 and are as follows:

Official Report for each year since 1959 (a) the tax threshold as a percentage of average earnings and (b) the standard rate tax threshold as a percentage of average earnings for a married couple with one child aged under 11 years, a married couple with two children, one aged under 11 years, a married couple with three children, two aged under 11 years, and a married couple with four children, two aged under 11 years; and if he will publish the standard tax rate and first rate payable for each year.

Mr. Robert Sheldon

, pursuant to his reply [Official Report, 16 January 1979; Vol. 960, c. 733], gave the following information:

The figures are as follows:

Tax threshold as a percentage of average earnings Standard or basic rate threshold as a percentage of average earnings
Married couple with 1 child under 11 Per cent. Married couple with 2 children, 1 under 11, 1 aged 11–16 Per cent. Married couple with 3 children, 2 under 11, 1 aged 11–16 Per cent. Married couple with 4 children, 2 under 11, 2 aged 11–16 Per cent. Married couple with 1 child under 11 Per cent. Married couple with 2 children, 1 under 11, 1 aged 11–16 Per cent. Married couple with 3 children, 2 under 11, 1 aged 11–16 Per cent. Married couple with 4 children, 2 under 11, 2 aged 11–16 Per cent.
1959–60 … … 64.1 84.3 98.6 115.9 129.8 148.2 160.2 175.5
1960–61 … … 59.7 78.7 92.2 108.6 120.9 138.3 149.9 164.5
1961–62 … … 57.8 75.8 88.8 104.5 115.8 132.4 143.6 157.7
1962–63 … … 55.9 73.4 86.0 101.4 112.0 128.2 139.1 152.9
1963–64 … … 67.5 86.1 99.8 116.1 111.8 129.3 141.9 157.0
1964–65 … … 62.4 79.8 92.6 108.0 103.4 119.8 131.7 146.0
1965–66 … … 57.4 73.6 85.7 100.1 95.3 110.7 121.9 135.5
1966–67 … … 55.4 71.0 82.8 96.8 92.0 106.9 117.8 131.0
1968–69 … … 48.9 58.0 63.8 71.5 81.2 89.2 93.8 100.4
1969–70 … … 48.8 56.5 61.2 67.7 74.7 81.5 85.2 90.9
1970–71 … … 51.1 57.9 62.0 67.8 51.1 57.9 62.0 67.8
1971–72 … … 49.3 58.6 65.3 73.4 49.3 58.6 65.3 73.4
1972–73 … … 52.7 60.7 66.6 73.8 52.7 60.7 66.6 73.8
1973–74 … … 45.9 53.0 58.0 64.4 45.9 53.0 58.0 64.4
1974–75 … … 42.8 50.5 56.6 63.6 42.8 50.5 56.6 63.6
1975–76 … … 38.0 44.1 48.7 54.2 38.0 44.1 48.7 54.2
1976–77 … … 39.0 46.0 51.7 58.1 39.0 46.0 51.7 58.1
1977–78 … … 42.5 48.6 53.6 59.3 42.5 48.6 53.6 59.3
1978–79 … … 38.9 43.5 47.2 51.3 55.4 59.5 62.7 66.5

For years up to and including 1969–70 average earnings are the Department of Employment's estimates of the average weekly earnings of full-time adult male manual workers in October of each year. For later years to 1977–78 the figures are based on the average of the new earnings survey estimates of the average earnings of similar workers in April at the start and finish of each income tax year. For 1978–79 the April 1978 new earnings survey estimate has been updated to September 1978, taking account of movements in a centred three-month moving average of the whole-economy index of average earnings of all employees. Family allowances and child benefits have been included in average earnings where appropriate.

The tax thresholds used take account where appropriate of the effect of earned income relief and of the family allowance deduction—clawback. For the sake

Increase in thresholds
Year Single Married Married with one child aged 10 and one aged 14 Increase RPI over previous 12 months (April to April)
£ percentage £ percentage £ percentage percentage
1974–75 … … 30 5.0 90 11.6 178 15.5 15.2
1975–76 … … 50 8.0 90 10.4 90 6.8 21.7
1976–77 … … 60 8.9 130 13.6 250 17.6 18.9
1977–78 … … 210 28.6 370 34.1 318 19.1 17.5
1978–79 … … 40 4.2 80 5.5 51 2.6 7.9

The figures are generally calculated on the same basis as the previous answer except that for 1977–78 and 1978–79 child benefit has been included in the tax free threshold. The General Index of Retail Prices for April in each year has been used in the calculation.

The threshold used is the amount of income that can be received before tax is charged. It takes account of the family allowance deduction—clawback—where appropriate.

The increase in thresholds in 1977–78 includes anticipation of the indexation required by the Finance Act 1977 due for 1978–79.

Mr. Norman Lamont

asked the Chancellor of the Exchequer if he will update the table given to the hon. Member for Oldham, West (Mr. Meacher) on tax thresholds, Official Report, 17 October 1973, column 216.

Mr. Robert Sheldon

I will let the hon. Member have a reply as soon as possible.

of comparability, the thresholds in 1977–78 and 1978–79 include any tax-free child benefit received.

The standard, basic, reduced and lower rates of taxes are published in Vol. 1 of the Taxes Acts.

For years 1970–71 to 1977–78 there were no lower or reduced rates of tax and therefore the standard or basic rate threshold is the same as the tax threshold.

Mr. Norman Lamont

asked the Chancellor of the Exchequer if he will publish in the Official Report an updating of the reply given to the hon. Member for Kingston upon Thames on tax thresholds, Official Report, 10 May 1974, column 292.

Mr. Robert Sheldon

The figures are as follows: