§ Mr. Squireasked the Chancellor of the Exchequer if he will update for 1980–81 and 1981–82 the figures provided in tables 2A.1, 2A.2, and 2A.3 of "Inland Revenue Statistics 1980".
§ Mr. RidleyThe following tables give revised figures for 1979–80 and 1980–81. In order to provide illustrative figures for 1981–82 it has been assumed that average earnings will increase by 11¼ per cent. and retail prices by 11¾ per cent. between 1980–81 and 1981–82.
Average earnings are those for full-time adult male manual workers. Two alternative figures are shown for calculations involving average earnings. The unbracketed figures in the tables follow the method used in constructing the tables in section 2A of "Inland Revenue Statistics 1980"; earnings figures are the averages of the new earnings survey estimates for the April at the beginning and end of each financial year. The bracketed figures are based on averages of monthly figures derived from the new earnings surveys and movements in a centred three-month moving average of the monthly index of average earnings of manual employees.
Following are the tables:
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Tax year Threshold at current prices Threshold at 1949/50 prices (index) Threshold as percentage of average manual earnings Tax-free income at current prices Tax-free income at 1949/50 prices (index) *Tax-free income as percentage of average income Break-even point at current prices Break-even point at 1949/50 prices (index) Break-even point as percentage of average manual earnings £ 1949/50 =100 per cent. £ 1949/50 =100 per cent. £ 1949/50 =100 per cent. Married man with two children under 11 1979–80 1,815 73.2 34.1 (34.5) 2,231 86.9 38.9 (39.3) 3,327 109.2 62.5 (63.3) 1980–81 2,145 74.6 35.3 (35.1) 2,589 86.9 39.7 (39.5) 3,625 102.4 59.7 (59.3) 1981–82 2,145 66.8 31.7(31.5) 2,658 79.9 36.5 (36.3) 3,855 97.4 57.0 (56.6) Married man with 4 children† 1979–80 1,815 54.9 34.1 (34.5) 2,647 74.3 43.0 (43.5) 4,713 102.3 88.6 (89.6) 1980–81 2,145 55.9 35.3(35.1) 3,034 73.2 43.6 (43.3) 5,108 95.3 84.1 (83.5) 1981–82 2,145 50.0 31.7(31.5) 3,171 68.5 40.7 (40.5) 5,565 93.0 82.3 (81.8) * Average income is defined as the average earnings of a full time adult male manual worker plus child benefit as appropriate. † 2 children under 11; 1 child aged between 11 and 15; 1 child 16 or over.