§ Mr. Squireasked the Chancellor of the Exchequer what would be the net cost of increasing the married man's tax allowance to provide a gain in weekly net income of (a) £1.10 and (b) £1.20; and in each case what would be the increase in the annual married man's tax allowance.
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§ Mr. RidleyThe information is as follows:
Gain in weekly net income for married taxpayers* Required increase in married man's allowance Full year cost at 1982–83 income levels† £ £ £ (a) 1.10 190 640 million (b) 1.20 210 700 million * Calculated at the basic rate; the gain for higher rate taxpayers would be larger.
† These represent the costs of increasing only the married man's allowance by the amounts specified; in practice the other main personal allowances and the addition for aged taxpayers would normally be raised in line.
§ Mr. George Cunninghamasked the Chancellor of the Exchequer if he will estimate the level of income, in current prices and expressed as a percentage of national average earnings, above which single people, married couples and married couples with two children in each case now pay less income tax and national insurance contributions—less child benefit where applicable—as a total sum of money in constant prices and as a proportion of gross earnings than they did in 1978–79; and whether he will estimate the same level of income for 1983–84 on the basis of announced policy changes and the conventional assumptions incorporated in the latest forecast required under the Industry Act 1975.
§ Mr. Ridley[pursuant to his reply, 18 November 1982, c. 231]: The multiples of average earnings in 1982–83 are as follows. The rows of the table refer to the cases where tax plus NIC less child benefit—where appropriate—is expressed (a) as a proportion of gross earnings; and (b) at constant—1978–79—prices. Corresponding estimates for 1983–84, on the conventional assumptions of the autumn statement, are shown in brackets.
Single Married Married with 2 children under 11 (a) 2.6 (2.7) 2.8 (2.9) 2.9 (3.0) (b) 3.5 (3.6) 3.7 (3.7) 3.8 (3.8) The calculations assume that the taxpayer has no allowances and reliefs other than the appropriate personal allowances and that he or she is not contracted out of the State—earnings-related—pension scheme. In the case of married couples, it has been assumed that the husband is the sole earner. Average earnings, for full-time males—all occupations—have been taken at £161.80 per week in 1982–83 and £172.30 in 1983–84. The increases in income tax and NIC below the earnings levels shown in the table do not mean that those concerned are worse off in 1982–83 than in 1978–79. Gross earnings have risen by more than prices over the period and real net earnings--after tax and NIC—of those in employment have generally increased since 1978–79.