HC Deb 14 November 1979 vol 973 cc621-2W
Mr. Lang

asked the Chancellor of the Exchequer how much more income tax an average wage-earner with two children would be paying per week, at the most recent date for which figures are available, if the standard rate of income tax were raised to 38p in the pound.

Mr. Peter Rees

If the basic rate of income tax were raised to 38 per cent., a married man on average manual earnings in July 1979 would pay an extra £3.90 per week in income tax.

This figure assumes that the first £750 of taxable income continues to be charged at the lower rate of 25 per cent.

The assumed level of average earnings for July 1979 used in this calculation has been obtained by updating the new earnings survey estimate of average earnings of full-time adult male manual workers in April 1979 taking account of movements in a centred three-month moving average of the whole economy index of average earnings of all employees.