§ Mr. Ralph Howellasked the Chancellor of the Exchequer, further to his reply to the hon. Member for Barking (Miss Richardson) Official Report, 12 January, what are the components of net weekly income, for instance, whether family income supplement is included; and if he will show the average earnings figures for each year on which the calculations are based.
§ Mr. Peter Rees[pursuant to his reply, 11 February 1981, c. 334]: The figures in the Official Report dated 12 January were calculated taking gross earnings less income tax and national insurance contributions at the not contracted out rate plus family allowance or child benefit if appropriate. They did not take account of family income supplement or any other means-tested benefits.
The average weekly earnings figures used in the calculations are for male manual workers as described in the previous answer and are as follows:
£ 1950–51 7.52 1955–56 11.15 1960–61 14.53 1965–66 19.59 1970–71 28.05 1975–76 60.40 1976–77 68.30 1977–78 76.10 1978–79 86.85 1979–80 102.35 1980–81 121.70
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will publish a table illustrating the effects on net income of the main options set out in the Green Paper on taxation of husband and wife, Cmnd. 8093, assuming annual gross incomes of £4,000, £6,000. £8,000, £10,000, £15,000, £20,000, £30,000and£40,000 and including examples for two-wage married couples and for couples with investment income.
§ Mr. Peter Rees[pursuant to his reply, 11 February 1981, c. 334]: Appendix 6 of the Green Paper describes four possible schemes for implementing mandatory independent taxation on a "revenue neutral" basis—that is changes which either do not alter total tax revenue, or, in the case of scheme 4, produce an increase in tax revenue which finances an increase in child benefit.
Further information on the effects of the schemes is given in background paper No. 2 "Distributional effects of a change to mandatory independent taxation".
The four schemes are:
45W
Scheme 1. Independent taxation with non-transferable tax allowances and no cash benefits for the spouse at home. Scheme 2. Independent taxation with allowances which are fully transferable between spouses. Scheme 3. Independent taxation with partially transferable allowances, where up to 56 per cent. of one spouse's
tax allowance may be transferred to the other spouse—reflecting the present relativity between the married allowance and the single allowance. Scheme 4. Independent taxation with non-transferable allowances where the yield of tax from reducing the allowance for a married man to the level of the allowance for a single person would finance a general increase in the level of child benefit.
Total income £ Scheme 1 Scheme 2 Scheme 3 Scheme 4 (no child-ren) Scheme 5 (2 children) £ £ £ £ £ All husband's earnings 4,000 –147 +178 +34 –256 +253 6,000 –147 +178 +34 –256 +253 8,000 –147 +178 +34 –256 +253 10,000 –147 +178 +34 –256 +253 15,000 –201 +238 +46 –365 +145 20,000 –245 +297 +57 –427 +82 30,000 –294 +332 +68 –513 +3 40,000 –294 +357 +69 –513 +3 Half husband's earnings, half wife's earnings 4,000 –63 –234 –186 –282 +228 6,000 –63 –234 –186 –282 +228 8,000 –63 –234 –186 –282 +228 10,000 –63 –234 –186 –282 +228 15,000 –40 –211 –163 –259 +251 20,000 +168 –3 +45 –51 +459 30,000 +252 –4 +67 –76 +433 40,000 +280 –5 +75 –85 +425 Examples of the effect of the various schemes on the net income of people with investment income were given in appendix 6 of the Green Paper, and in tables 9 to 12 of the background paper.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer how much the United Kingdom has received in rebate from the European Economic Community in respect of 1980; and what additional sum falls to be paid to the United Kingdom before 31 March in terms of the 30 May 1980 agreement at the Council of Ministers.
§ Mr. Lawson[pursuant to his reply, 12 February 1981, c. 405]: The United Kingdom has so far received payments totalling £157.9 million under the supplementary measures regulation and £210.5 million under the amended financial mechanism regulation. For details of other payments to be made to the United Kingdom in the current financial year in accordance with the budget agreement of 30 May, I refer my hon. Friend to the reply given by my right hon. Friend the Lord Privy Seal on 27 October.—[Vol. 991, c. 96–99.]