HC Deb 11 July 1979 vol 970 cc216-20W
Mr. Dodsworth

asked the Chancellor of the Exchequer what arrangements he is making to implement the personal tax changes introduced in his Budget; and what will be the effect on the pay packets of people earning £60, £100 and £150 a week.

Mr. Lawson

For the great majority of PAYE taxpayers the benefit of the improvements that my right hon. and learned Friend has made in personal tax allowances will be reflected in the first pay packets they receive after 12 July. The further benefit from the reduction in the basic and higher rates of tax will be felt in pay packets received after 6 October. The following table shows the effect of these changes on the levels of PAYE tax deduction and the rebates to be received:

PAYE—1979–80 TAX DEDUCTIONS AND REBATES
Weekly pay Weekly tax 6 April to 12 July Rebate on first pay day after 12 July Weekly tax 13 July to 5 October Rebate on first pay day after 5 October Weekly tax after 5 October
£ £ £ £ £ £
Single person 60.00 12.40 17.10 11.30 18.80 10.60
100.00 25.60 17.10 24.50 51.20 22.60
150.00 42.10 17.10 41.00 91.70 37.60
Married couple (wife not working) 60.00 8.90 26.70 7.10 8.60 6.80
100.00 22.10 26.70 20.30 41.00 18.80
150.00 38.60 26.70 36.80 81.50 33.80
NOTE: Rebates include the reduction in tax in the pay week together with the back repayments due from previous weeks.

Mrs. Renée Short

asked the Chancellor of the Exchequer (1) what the net effect of his tax cuts on a family earning £10,000 a year will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(2) what the net effect of his tax cuts on a family earning £150 a week will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(3) what the net effect of his tax cuts on a family earning £80 a week will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(4) what the net effect of his cuts on a family earning £70 a week will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(5) what the net effect of his tax cuts on a family earning £60 a week will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(6) what the net effect of his tax cuts on a family earning £30,000 a year will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(7) what the net effect of his tax cuts on a family earning £12,500 a year will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(8) what the net effect of his tax cuts on a family earning £15,000 a year will now be, taking into account a 17.5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(9) what the net effect of his tax cuts on a family earning £20,000 a year will now be, taking into account a 17–5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage;

(10) what the net effect of his tax cuts on a family earning £25,000 a year will now be, taking into account a 17–5 per cent. inflation rate and a 13 per cent. mortgage rate on a standard 25-year £10,000 mortgage.

Mr. Peter Rees

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