§ Mr. George Cunninghamasked the Chancellor of the Exchequer (1) if he will estimate the size of the cut in the standard rate of income tax to the nearest 0.1p now 418W required to reduce the total tax payments—income tax, national insurance contributions, indirect taxes, less child benefit where applicable—for those on 75 per cent., 100 per cent. and 200 per cent. of national average earnings 419W for single people, married couples and married couples with two children families in each case to the same proportion of gross earnings as in 1978–79;
(2) if he will estimate the size of the cut in the standard rate of income tax to the nearest 0.1p which would be required in this financial year 1982–83 and in 1983–84 to reduce the total tax payments—income tax, national insurance contributions, indirect taxes, less child benefit where applicable—for those on 75 per cent., 100 per cent. and 200 per cent. of national average earnings for single people, married couples and married couples with two children families in each case to the same total sum of money in constant prices as in 1978–79.
§ Mr. Ridley[pursuant to his reply, 18 November 1982, c. 231-2]: Illustrative figures for 1982–83 and 1983–84 are given in the tables for those on 75 and 100 per cent. of average earnings. Comparable figures cannot be given for those on 200 per cent. of average earnings since payments of indirect taxes cannot be estimated reliably for increases above about one and three quarter times average earnings.
Reduction in Basic Rate of Income Tax Necessary: (i) to restore the real level of tax payments in 1978–79 p in £ 1982–83 1983–84 Proportion of average earnings Single Married Married + 2 children Single Married Married + 2 children 75 per cent. 9.5 8.2 10.1 10.7 9.7 11.1 100 per cent. 8.0 7.8 8.5 9.1 9.1 9.4 (ii) to restore the proportion of income taken in tax payments in 1978–79 Proportion of average earnings 75 per cent. 4.8 3.5 5.9 5.1 4.1 6.1 100 per cent. 3.1 3.1 4.0 3.4 3.5 4.2