§ Mr. Rookerasked the Chancellor of the Exchequer if he will now update his answer to the hon. Member for Birmingham, Perry Barr of 27 March 1984, Official Report, column 109, by giving information about the reductions in the basic rate of income tax which would be necessary to restore tax payments to their 1978–79 levels in 1985–86.
§ Mr. Rookerasked the Chancellor of the Exchequer what is the estimated yield from all sources of taxation, including excise and other duties, for 1985–86; what was the comparable yield for 1978–79 revalued at 1985–86 prices; and if he will publish a breakdown by categories of the real increase in taxes between 1978–79 and 1985–86, similar to that in his answer of 28 March 1984, Official Report, column 206.
§ Mr. MooreThe estimated total yield of taxes, local authority rates and national insurance contributions is £138 billion in 1985–86; the yield in 1978–79 revalued at 1985–86 prices using the GDP deflator is £109 billion. The other information requested is in the table.
£billion 1985–86 prices Change on 1978–79 Income tax -0.4 Non North Sea corporation tax — North Sea taxes* +12.4 Capital taxes and stamp duty +0.6 NIC—employees +4.4 NIC—employers +1.1 NIS -3.9 LA rates +2.8 Taxes on expenditure +11.8 Total change† +29.0 * Before advance corporation tax set-off. † Components do not sum to total because of rounding.
§ Mr. Rookerasked the Chancellor of the Exchequer whether he will provide information on the net income after income tax, national insurance contributions and child benefit at (a) actual prices and (b) equivalent 1984–85 prices of typical household units (i) single, (ii) married couple, (iii) married couple with two children and (iv) married couple with four children, whose earnings from work are equivalent to the following points on the male earnings distribution: (1) lowest decile, (2) median and (3) highest decile for each year since April 1978.
§ Mr. MooreInformation in the following tables is based on estimates of earnings for those in full-time work paid at adult rates, with pay unaffected by absence. Estimates are based on information from the new earnings surveys.
Income tax rates and allowances for April 1979 are those specified in the Finance Act 1979, later replaced by those announced in June 1979; for other Aprils, they are the rates and allowances for the financial year immediately following. Taxpayers are assumed to have no reliefs or allowances other than the appropriate personal allowance. National insurance contributions are at the contracted-in rate.
The calculations take no account of means-tested benefits to which those at the lowest decile may be entitled. Changes in the purchasing power of net earnings have been calculated by reference to movements in the general index of retail prices between Aprils.
367W
Earnings after income tax, National Insurance Contributions and Child Benefit At current prices At constant (April 1984) prices At constant prices (April 1978=100) At current prices At constant (April 1984) prices At constant prices {April 1978=100) £ £ £ £ Single man Married man At the lowest decile gross earnings April 1978 39.35 70.71 100.0 42.84 76.98 100.0 April 1979 44.09 71.98 101.8 47.90 78.20 101.6 April 1980 53.47 71.70 101.4 57.92 77.66 100.9 April 1981 57.67 69.02 97.6 62.11 74.34 96.6 April 1982 61.95 67.76 95.8 67.03 73.32 95.1 April 1983 66.91 70.37 99.5 72.73 76.50 99.4 April 1984 74.43 74.43 105.3 81.07 81.07 105.3 At the median of gross earnings April 1978 56.29 101.15 100.0 59.78 107.42 100.0 April 1979 63.94 104.39 103.2 67.75 110.60 103.0 April 1980 78.52 105.29 104.1 82.96 111.24 103.6 April 1981 85.56 102.39 101.2 90.00 107.71 100.2 April 1982 93.00 101.73 100.6 98.8 107.28 99.9 April 1983 100.64 105.85 104.6 106.47 111.97 104.2 April 1984 116.19 116.19 114.9 122.82 122.82 114.3 At the highest decile of gross earnings April 1978 85.50 153.64 100.0 88.99 159.92 100.0 April 1979 96.89 158.17 102.9 100.70 164.39 102.8 April 1980 123.64 165.78 107.9 128.08 171.74 107.4 April 1981 139.36 166.79 108.6 143.81 172.10 107.6 April 1982 151.76 166.00 108.0 156.84 171.55 107.3 April 1983 165.83 174.41 113.5 171.66 180.53 112.9 April 1984 196.55 196.55 127.9 203.18 203.18 127.0 Married man with two children* Married man with four children† At the lowest decile gross earnings April 1978 48.71 87.53 100.0 55.15 99.11 100.0 April 1979 55.90 91.26 104.3 63.90 104.32 105.3 April 1980 65.92 88.38 101.0 73.92 99.11 100.0 April 1981 71.61 85.70 97.9 81.11 97.07 97.9 April 1982 77.53 84.80 96.9 88.03 96.29 97.1 April 1983 84.43 88.80 101.4 96.13 101.11 102.0 April 1984 94.07 94.07 107.5 107.07 107.07 108.0 At the median of gross earnings April 1978 65.65 117.97 100.0 72.15 129.66 100.0 April 1979 75.75 123.67 104.8 83.75 136.72 105.4 April 1980 90.96 121.97 103.4 98.96 132.70 102.3 April 1981 99.50 119.08 100.9 109.00 130.45 100.6 April 1982 108.58 118.77 100.7 119.08 130.25 100.4 April 1983 118.17 124.28 105.3 129.87 136.58 105.3 April 1984 135.82 135.82 115.1 148.82 148.82 114.8 At the highest decile of gross earnings April 1978 94.86 170.46 100.0 101.36 182.15 100.0 April 1979 108.70 177.46 104.1 116.70 190.51 104.6 April 1980 136.08 182.46 107.0 144.08 193.19 106.1 April 1981 153.31 183.47 107.6 162.81 194.84 107.0 April 1982 167.34 183.04 107.4 177.84 194.52 106.8 April 1983 183.36 192.84 113.1 195.06 205.15 112.6 April 1984 216.18 216.18 126.8 229.18 229.18 125.8 * Both children under 11. † Two children under 11, one child 11–15, one child over 16.
§ Mr. Rookerasked the Chancellor of the Exchequer if he will publish in the Official Report a table showing the comparison between the yield in real terms in 1978–79 and what he is now proposing for 1985–86 in (a) direct taxes including national insurance and (b) indirect taxes.
§ Mr. MooreThe information is in the following table:368W
369W
Changes on 1978–79 £ billion, 1985–86 prices Direct taxes* +16.9 Indirect taxes† +12.1 +29.0 * Including employees' NICs. † Including employers' NICs.
§ Mr. Sean Hughesasked the Chancellor of the Exchequer if he will construct an index, with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) two thirds, (b) average, (c) five times average and (d) 10 times average earnings for households where the taxpayer is (i) single, (ii) married, (iii) married with two children and (iv) married with four children, and in all cases assuming that the wife does not work, in the manner of the answer of 23 November 1983, Official Report, column 171–2.
§ Mr. Rookerasked the Chancellor of the Exchequer if he will construct an index with 1978–79 equalling 100, of the changes in the level of income tax and national insurance contributions for each subsequent year for a taxpayer on (a) half, (b) two thirds, (c) average, (d) five
Multiple of average earnings Half Two-thirds One Five Ten (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) Single 1978–79 23.6 100.0 27.6 100.0 31.5 100.0 52.2 100.0 67.5 100.0 1979–80 22.9 102.6 26.3 103.5 29.7 104.4 42.8 121.6 51.4 151.9 1980–81 24.7 103.5 27.7 104.9 30.7 106.3 44.3 122.5 52.1 154.6 1981–82 26.9 100.1 29.6 101.7 32.3 103.5 46.4 117.3 53.2 150.5 1982–83 27.3 100.3 30.2 101.7 33.0 103.2 45.9 119.4 53.0 152.5 1983–84 27.0 104.5 30.0 105.7 33.0 107.1 45.1 125.7 52.5 159.5 1984–85 26.4 107.8 29.6 108.8 32.7 110.0 45.2 128.4 52.6 163.1 1985–86 26.1 109.8 29.3 110.8 32.5 111.9 45.3 129.9 52.7 165.2 Married 1978–79 16.0 100.0 22.0 100.0 27.8 100.0 50.5 100.0 66.5 100.0 1979–80 16.0 101.7 21.2 102.7 26.3 103.8 41.5 120.3 50.7 149.7 1980–81 17.9 102.7 22.7 104.1 27.3 105.7 42.9 121.2 51.5 152.4 1981–82 20.8 98.7 25.1 100.5 29.3 102.5 45.2 115.8 52.6 148.1 1982–83 20.8 99.4 25.4 100.9 29.8 102.5 44.6 118.0 52.3 150.2 1983–84 20.1 104.0 24.9 105.3 29.6 106.7 43.7 124.3 51.9 157.3 1984–85 19.2 107.7 24.2 108.7 29.1 109.9 43.8 127.2 51.9 160.9 1985–86 18.7 109.9 23.9 110.8 28.9 111.8 43.9 128.8 51.9 163.1 Married with 2 children (both under 11) 1978–79 2.5 100.0 11.7 100.0 20.9 100.0 48.8 100.0 65.6 100.0 1979–80 1.4 102.8 10.3 103.3 19.0 104.2 40.0 119.1 50.0 147.9 1980–81 4.9 102.5 13.0 103.5 20.8 105.1 41.6 119.8 50.8 150.4 1981–82 7.3 99.5 15.0 100.7 22.5 102.5 43.9 114.7 51.9 146.3 1982–83 6.9 100.6 15.0 101.5 22.8 102.8 43.2 116.9 51.6 148.4 1983–84 5.9 105.5 14.3 106.2 22.5 107.2 42.3 123.2 51.2 155.4 1984–85 4.8 109.3 13.5 109.7 21.9 110.5 42.3 126.1 51.2 159.1 1985–86 4.5 111.2 13.3 111.5 21.8 112.3 42.4 127.6 51.2 161.2 Married with 4 children (two under 11, one 11–15 and one over 16) 1978–79 -11.7 100.0 0.4 100.0 13.3 100.0 46.7 100.0 64.6 100.0 1979–80 -13.2 103.1 -0.6 102.7 11.6 103.6 38.5 117.4 49.3 145.6 1980–81 -8.1 101.7 3.3 102.0 14.3 103.8 40.3 117.7 50.2 147.8 1981–82 -6.2 99.5 4.9 99.9 15.8 101.7 42.5 112.9 51.3 143.9 1982–83 -6.9 101.0 4.7 100.9 15.9 102.3 41.8 115.1 50.9 146.0 1983–84 -8.3 106.1 3.7 105.8 15.3 106.8 40.9 121.4 50.4 152.9 1984–85 -9.7 109.9 2.7 109.3 14.7 110.2 40.9 124.3 50.4 156.5 1985–86 -9.7 111.5 2.6 111.0 14.6 111.8 41.0 125.8 50.5 158.6