§ Mr. Strawasked the Chancellor of the Exchequer if he will publish estimates of (a) value added tax, (b) domestic rates, and (c) other indirect taxes, paid by those on (i) 75 per cent. (ii) 100 per cent. and (iii) 150 per cent. of average earnings in 1985–86 and each of the previous seven years; and if he will state the level of average earnings in each year.
§ Mr. Moore[pursuant to his reply, 28 June 1985, c. 513]: Estimates based on the 1983 family expenditure survey and for four household types are in the table.
113W
£ per week Single Married (one working) Married (both working) Married with two children (one working) 75 per cent. of average earnings 1978–79 VAT 1.71 1.76 2.07 1.62 Domestic rates 2.23 2.46 2.62 2.25 Other indirect taxes 5.85 7.17 8.91 7.06 114W
Single Married (one working) Married (both working) Married with two children (one working) 1979–80 VAT 3.16 3.21 3.71 2.97 Domestic rates 2.66 2.93 3.11 2.67 Other indirect taxes 6.64 8.03 9.89 7.95 1980–81 VAT 3.81 3.92 4.44 3.56 Domestic rates 3.43 3.76 3.97 3.46 Other indirect taxes 7.81 9.45 11.48 9.29 1981–82 VAT 4.16 4.22 4.77 3.89 Domestic rates 4.25 4.67 4.93 4.27 Other indirect taxes 9.03 10.94 13.40 10.89 1982–83 VAT 4.51 4.58 5.23 4.24 Domestic rates 4.68 5.16 5.46 4.70 Other indirect taxes 9.41 11.41 14.21 11.43 1983–84 VAT 5.04 5.14 5.91 4.78 Domestic rates 4.82 5.32 5.63 4.86 Other indirect taxes 10.27 12.45 15.52 12.44 1984–85 VAT 5.73 5.84 6.68 5.30 Domestic rates 4.95 5.46 5.78 5.02 Other indirect taxes 10.81 13.23 16.41 13.20 1985–86 VAT 6.13 6.24 7.30 5.63 Domestic rates 5.26 5.80 6.16 5.31 Other indirect taxes 11.55 14.10 17.69 14.04 100 per cent. of average earnings 1978–79 VAT 2.35 2.49 2.76 2.22 Domestic rates 2.52 2.68 2.78 2.58 Other indirect taxes 7.09 8.62 9.91 7.98 1979–80 VAT 4.37 4.59 4.98 4.11 Domestic rates 3.01 3.19 3.30 3.07 Other indirect taxes 8.15 9.76 11.11 9.12 1980–81 VAT 5.27 5.58 5.95 4.94 Domestic rates 3.91 4.11 4.22 3.99 Other indirect taxes 9.63 11.50 12.90 10.72 1981–82 VAT 5.80 6.08 6.46 5.42 Domestic rates 4.84 5.10 5.24 4.93 Other indirect taxes 11.13 13.30 15.01 12.55 1982–83 VAT 6.28 6.59 7.06 5.90 Domestic rates 5.31 5.62 5.80 5.42 Other indirect taxes 11.63 13.88 15.88 13.19 1983–84 VAT 7.01 7.38 7.93 6.62 Domestic rates 5.47 5.79 5.98 5.59 Other indirect taxes 12.68 15.16 17.37 14.37 1984–85 VAT 7.95 8.28 9.17 7.55 Domestic rates 5.62 5.95 6.13 5.77 Other indirect taxes 13.32 16.04 18.30 15.21 1985–86 VAT 8.50 8.85 9.90 8.03
Single Married (one working) Married (both working) Married with two children (one working) Domestic rates 5.97 6.31 6.53 6.11 Other indirect taxes 14.23 17.11 19.67 16.17 150 per cent. of average earnings 1978–79 VAT 3.69 4.01 4.08 3.48 Domestic rates 3.13 3.12 3.09 3.26 Other indirect taxes 9.68 11.64 11.83 9.88 1979–80 VAT 6.94 7.51 7.49 6.53 Domestic rates 3.76 3.73 3.68 3.92 Other indirect taxes 11.33 13.42 13.51 11.58 1980–81 VAT 8.36 9.09 8.98 7.84 Domestic rates 4.92 4.84 4.73 5.12 Other indirect taxes 13.48 15.83 15.73 13.71 1981–82 VAT 9.17 9.91 9.83 8.59 Domestic rates 6.06 5.98 5.87 6.30 Other indirect taxes 15.47 18.19 18.25 15.99 1982–83 VAT 9.93 10.74 10.71 9.33 Domestic rates 6.62 6.57 6.47 6.88 Other indirect taxes 16.18 18.98 19.23 16.81 1983–84 VAT 11.08 12.01 11.99 10.46 Domestic rates 6.81 6.77 6.67 7.10 Other indirect taxes 17.68 20.78 21.07 18.37 1984–85 VAT 12.59 13.39 14.16 12.25 Domestic rates 7.03 6.97 6.85 7.35 Other indirect taxes 18.55 21.92 22.07 19.39 1985–86 VAT 13.46 14.33 15.15 13.07 Domestic rates 7.45 7.40 7.27 7.78 Other indirect taxes 19.85 23.43 23.67 20.66 Notes:
1. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. The levels of average earnings in each year are given below. The figures for 1985–86 is illustrative and assumes growth of 7 per cent. over the provisional 1984–85 outturn.
£ per week £ per week 1978–79 92.90 1982–83 157.50 1979–80 109.40 1983–84 171.00 1980–81 131.50 1984–85 *185.20 1981–82 146.00 1985–86 †198.20 * provisional. † assumption. 2. The married couple with both working is assumed to have joint earnings of the various multiples of average earnings. In calculating disposable income it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.
3. The estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved. They are derived from the 1983 family expenditure survey, but have been adjusted to reflect the effects of average changes in spending patterns over the eight year period.
4. The category "other indirect taxes" covers central Government taxes only, but includes the indirect effects of taxes levied on businesses.