Income Tax (Hansard, 25 June 1979)

§ Mr. Austin Mitchell
asked the Chancellor of the Exchequer what sums converted into sterling, and what percentage of income, are paid in tax by a wage earner on the national average wage with two children under 11 years of age in France, West Germany and in the United Kingdom before and after his Budget.
49W

§ Sir Geoffrey Howe
Information on the national average wage in France and West Germany is not available. A com-

Average production worker's wage in £ sterling Income tax in £ sterling Percentage of income paid in income tax

France … 5,040 70 1.4

West Germany … 7,450 805 10.8

United Kingdom (pre-Budget) … 4,940 998 20.2

1979–80 (Budget purposes) … 4,940 900 18.2

Notes:

1. Figures for France and Germany are United Kingdom Treasury estimates of APW wage levels as at 1 April 1979 based on OECD figures for 1977 earnings of an average production worker. The United Kingdom figure is an estimate of the average wage of a male manual worker in manufacturing industry for March 1979. Figures for national average wages in France and Germany are not available.

2. Currency conversions have been made at the exchange rates prevailing on 1 June 1979. The exchange rates between the United Kingdom and overseas countries may not fully reflect differences in consumers' purchasing power between the United Kingdom and those countries.

3. All income is assumed to be employment income of the husband.

4. 1978 income tax rates have been used for France—French rates are fixed in arrear. For Germany the 1979 rates have been used.

5. Personal reliefs, minimum expenses deductions, employment income relief, other flat-rate reliefs and deductible social security contributions have been taken into account.

6. Pre-Budget United Kingdom figures have been calculated by using 1978–79 tax rates, these are the rates under which PAYE tax deductions will be made from 6 April 1979 to July 1979, when the first tranche of the Budget proposals will be implemented. Post-Budget figures are on the basis of full implementation after Budget proposals.

7. The United Kingdom completed its move from child tax allowances to child benefits with effect from 6 April 1979. Income from child benefits has not been taken into account in any of these calculations, and United Kingdom tax allowances have been ignored in 1978–79 for the purposes of the suspension.

§ Mr. Lofthouse
asked the Chancellor of the Exchequer how many persons living in Pontefract, Castleford and Featherstone will be taken out of the income tax bracket as a result of his Budget proposals.

§ Mr. Peter Rees
I shall let the hon. Member have a reply as soon as possible.

		Average production worker's wage in £ sterling	Income tax in £ sterling	Percentage of income paid in income tax
France	…	5,040	70	1.4
West Germany	…	7,450	805	10.8
United Kingdom (pre-Budget)	…	4,940	998	20.2
1979–80 (Budget purposes)	…	4,940	900	18.2
Notes:
1. Figures for France and Germany are United Kingdom Treasury estimates of APW wage levels as at 1 April 1979 based on OECD figures for 1977 earnings of an average production worker. The United Kingdom figure is an estimate of the average wage of a male manual worker in manufacturing industry for March 1979. Figures for national average wages in France and Germany are not available.
2. Currency conversions have been made at the exchange rates prevailing on 1 June 1979. The exchange rates between the United Kingdom and overseas countries may not fully reflect differences in consumers' purchasing power between the United Kingdom and those countries.
3. All income is assumed to be employment income of the husband.
4. 1978 income tax rates have been used for France—French rates are fixed in arrear. For Germany the 1979 rates have been used.
5. Personal reliefs, minimum expenses deductions, employment income relief, other flat-rate reliefs and deductible social security contributions have been taken into account.
6. Pre-Budget United Kingdom figures have been calculated by using 1978–79 tax rates, these are the rates under which PAYE tax deductions will be made from 6 April 1979 to July 1979, when the first tranche of the Budget proposals will be implemented. Post-Budget figures are on the basis of full implementation after Budget proposals.
7. The United Kingdom completed its move from child tax allowances to child benefits with effect from 6 April 1979. Income from child benefits has not been taken into account in any of these calculations, and United Kingdom tax allowances have been ignored in 1978–79 for the purposes of the suspension.