§ 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 1986–87 and each of the previous eight
75 per cent. of average earnings Single £ per week Married (one working) £ per week Married (both working) £ per week Married (one working) with two children £ per week 1978–79 VAT 1.74 1.58 2.03 1.71 Domestic rates 2.30 2.31 2.64 2.30 Other indirect taxes 5.92 7.04 8.51 6.83 1979–80 VAT 3.30 2.94 3.62 3.28 Domestic rates 2.73 2.74 3.13 2.74 Other indirect taxes 6.71 7.89 9.50 7.73 1980–81 VAT 4.06 3.68 4.46 4.01 Domestic rates 3.56 3.54 4.01 3.54 Other indirect taxes 7.93 9.22 11.13 9.12 1981–82 VAT 4.51 4.02 4.83 4.45 Domestic rates 4.39 4.38 4.97 4.38 Other indirect taxes 9.18 10.75 12.96 10.77 1982–83 VAT 4.65 4.14 5.03 4.63 Domestic rates 4.81 4.82 5.50 4.81 Other indirect taxes 9.49 11.20 13.69 11.23 1983–84 VAT 5.02 4.50 5.49 5.04 Domestic rates 4.87 4.89 5.57 4.89 Other indirect taxes 10.38 12.22 15.00 12.26 258W
100 per cent. of average earnings Single £ per week Married (one working) £ per week Married (both working) £ per week Married (one working) with two children £ per week 1978–79 VAT 2.42 2.30 2.83 2.43 Domestic rates 2.72 2.60 2.85 2.67 Other indirect taxes 7.54 8.28 10.04 8.07 1979–80 VAT 4.63 4.32 5.11 4.54 Domestic rates 3.24 3.10 3.38 3.18 Other indirect taxes 8.64 9.40 11.27 9.25 1980–81 VAT 5.70 5.37 6.27 5.56 Domestic rates 4.25 4.03 4.34 4.14 Other indirect taxes 10.21 11.02 13.15 10.89 1981–82 VAT 6.37 5.94 6.88 6.20 Domestic rates 5.24 4.98 5.37 5.11 Other indirect taxes 11.83 12.83 15.28 12.80 1982–83 VAT 6.57 6.13 7.14 6.43 Domestic rates 5.72 5.47 5.93 5.61 years in the same form as his reply of 2 July 1985, Official Report, column 112; and if he will give the level of average earnings in each year.
§ Mr. BrookeEstimates for the years 1978–79 to 1983–84 are in the following table. Estimates for 1984–85 to 1986–87 were included in the reply given to the hon. Member on 26 March 1986,Official Report, columns 530–36.
259W
Single £ per week Married (one working) £ per week Married (both working) £ per week Married (one working) with two children £ per week Other indirect taxes 12.22 13.36 16.07 13.34 1983–84 VAT 7.08 6.63 7.76 6.97 Domestic rates 5.79 5.53 6.01 5.69 Other indirect taxes 13.38 14.59 17.61 14.57
150 per cent. of average earnings Single £ per week Married (one working) £ per week Married (both working) £ per week Married (one working) with two children £ per week 1978–79 VAT 3.83 3.81 4.35 3.95 Domestic rates 3.59 3.22 3.25 3.43 Other indirect taxes 10.94 10.86 12.98 10.65 1979–80 VAT 7.45 7.23 8.06 7.19 Domestic rates 4.32 3.86 3.87 4.12 Other indirect taxes 12.70 12.59 14.75 12.43 1980–81 VAT 9.16 8.94 9.89 8.81 Domestic rates 5.69 5.05 4.99 5.39 Other indirect taxes 15.02 14.79 17.20 14.63 1981–82 VAT 10.20 9.90 10.97 9.81 Domestic rates 6.99 6.21 6.18 6.63 Other indirect taxes 17.28 17.13 19.92 16.99 1982–83 VAT 10.52 10.21 11.38 10.15 Domestic rates 7.61 6.79 6.81 7.24 Other indirect taxes 17.84 17.81 20.81 17.67 1983–84 VAT 11.35 11.03 12.30 10.99 Domestic rates 7.70 6.88 6.89 7.34 Other indirect taxes 19.60 19.51 22.84 19.36 Notes to Table
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.
£ per week 1978–79 92.80 1979–80 109.30 1980–81 131.40 1981–82 145.90 1982–83 157.40 1983–84 171.00 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 assuption that 10 per cent. of disposable income is saved. They are derived fron the 1984 Family Expenditure Survey, but have been adjusted to reflect the effects of average changes in spending patterns over time.
4. The category 'other indirect taxes' covers central Government taxes only but includes the indirect effects of taxes levied on businesses.