HC Deb 22 March 1984 vol 56 cc528-9W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for a married man with two children, one earner and no other allowances, the percentage of gross income taken in (a) direct taxes, including national insurance contributions less child benefit and (b) indirect taxation in the financial year 1978–79 compared to a full year as a result of the changes proposed in the current budget where the earnings of the married man are: (i) three times average earnings, (ii) average earnings, (iii) 60 per cent. of average earnings and (iv) 45 per cent. of average earnings in all cases with no other income.

Mr. Moore

Figures for 1978–79 and 1984–85 are as follows. The latter reflect the full year effect of the 1984 Budget.

(Per cent.)
1978–79 1984–85
Three times average earnings
(a) Direct 35.2 33.5
Average earnings
(a) Direct 21.2 21.7
(b) Indirect 10.8 12.2
60 per cent, of average earnings
(a) Direct 8.9 10.3
45 per cent, of average earnings
(a) Direct -0.2 0.7

Notes to table:

1. Average earnings as used here are the average gross weekly earnings of full time men whose pay is unaffected by absence, all occupations, all industries and services, Great Britain, monthly financial year averages. Figures for 1983–84 and 1984–85 are illustrative estimates.

2. National insurance contributions are calculated at the Class I contracted-in rate.

3. Child benefit is calculated at an average weekly rate through the financial year. The 1984–85 figure is an illustrative assumption.

Estimates for indirect tax payments are derived from the "Family Expenditure Survey". They are unreliable at incomes above one and a half times, and below around three quarters, average earnings. Local authority rates are excluded.