HC Deb 16 January 1986 vol 89 cc646-7W
13. Mr. Marlow

asked the Chancellor of the Exchequer if he will make a statement on his policy towards the taxation of families.

Mr. Moore

We shall be putting forward our views on this issue in the Green Paper in due course.

21. Mr. Michael Forsyth

asked the Chancellor of the Exchequer what is the effective marginal tax rate on earnings of those in the lower tax band; and how this compares with other major industrialised countries.

Mr. Moore

The marginal income tax rate on earnings for those in the lowest tax band in this country is 30 per cent. This is the second highest rate amongst the OECD countries.

24. Mr. Nicholls

asked the Chancellor of the Exchequer what representations he has received in the last six months on the level of income tax; and if he will make a statement.

Mr. Moore

We have received a wide range of representations on this issue in the last six months.

27. Mr. Neil Hamilton

asked the Chancellor of the Exchequer what would be the effect on the net disposable income of a single man earning £100 per week gross of the Government devoting £1 ,200 ,000 ,000 to (a) raising income tax thresholds uniformly or (b) reducing the basic rate of income tax.

Mr. Moore

A single man would get an increase in net income of 69p and 55p per week, respectively, based on the illustrative allowances shown in the autumn statement.

30. Mr. Hannam

asked the Chancellor of the Exchequer what increase in take-home pay would be received by a person earning £140 a week if the basic rate of income tax were reduced from 30 per cent. to 28 per cent.

46. Mr. Yeo

asked the Chancellor of the Exchequer what increase in take-home pay would be received by a person earning £140 a week if the basic rate of income tax were reduced from 30 to 28 per cent.

Mr. Moore

£1.90 per week for a single person or working wife and £1.39 for a married man in 1986–87, based on the illustrative allowances shown in the autumn statement.

Mr. Forman

asked the Chancellor of the Exchequer what proportion of tax units do not pay any income tax; what were the equivalent figures for each year since 1978–79; and what was the average income of each tax unit in this group in each year at constant prices.

Mr. Moore

Estimates of the proportion of tax units who do not pay income tax are as follows. The figures exclude young people aged under 16 and those over 16 still at school. I regret that there is insufficient information to provide reliable estimates of the average income of this group.

Year Percentage of tax units∗ who do not pay income tax
1978–79 26.5
1979–80 26-5
1980–81 29.4
1981–82 31.0
1982–83 31.4
1983–84 33.1
1984–85 34.0
1985–86 34.5

∗Counting married couples as one.