§ Mr. Rookerasked the Chancellor of the Exchequer if he will now update his answer of 9 February, Official Report, columns 745–46, on income and taxation for 1984–85.
§ Mr. Moore[pursuant to his reply, 19 March 1984, c. 320]: Estimates for 1983–84 and 1984–85 are as follows. The figures for 1983–84 have been revised in the light of the most recent family expenditure survey.
Underlying assumptions are the same as those for the previous answer; additionally, for illustration, average earnings are assumed to be 6½ per cent. higher, and retail prices 4½ per cent. higher in 1984–85 than this year.
Reduction in basic rate necessary to restore tax payments to their 1978–79 levels at percentage of average earnings (i) in 1983–84 (ii) in 1984–85 Single Married Married +2 children Single Married Married +2 children (a) in real terms 75 10.1 10.8 8.6 10.8 11.5 8.7 100 8.2 8.4 6.5 9.0 9.0 6.8 150 6.8 7.0 4.7 7.6 7.6 5.1 (b) as a percentage of gross earnings 75 6.3 6.3 5.3 6.1 5.7 4.4 100 4.5 4.2 3.1 4.3 3.7 2.5 150 3.2 3.2 1.8 3.1 2.9 1.3