§ Mr. David Atkinsonasked the Chancellor of the Exchequer what was the percentage increase in value added tax thresholds for every year since 1973; what was the percentage annual increase in the rate of inflation for each year since 1973; and if he will make a statement.
§ Mr. BrookeThe percentage increases in the value added tax registration threshold have been as follows:
Date of Change Increase in the threshold (per cent.) 1 October 1977 50.0 12 April 1978 33.3 27 March 1980 35.0 11 March 1981 11.1 10 March 1982 13.3 16 March 1983 5.9 14 March 1984 3.9 20 March 1985 4.3 19 March 1986 5.1 The cumulative rate of inflation between April 1973 and December 1985 is 311 per cent. The threshold, increases in which are conventionally rounded to the nearest £100, has risen by 310 per cent. in the same period (from £5,000 in 1973 to £20,500 in the March 1986 Budget). Under the EC sixth VAT directive member states are permitted to increase their threshold by no more than the rate of inflation.
Inflation is normally measured on a 12-months basis, but since April 1973 there have been technical adjustments to the basis of calculation for VAT threshold purposes in 133W order to arrive at the present December-December year-on-year RPI comparison and it is not therefore particularly meaningful to disaggregate the inflation figure to individual years. I shall, however, write to my hon. Friend with further information.
§ Mr. Buchanasked the Chancellor of the Exchequer what value added tax was due, deductible, and payable, or repayable, in each financial year for which figures are available since 1973–74, in the United Kingdom, on (a) all cultural events, (b) artists and authors, and so on, (c) cinemas, (d) theatres, music halls, radio and television services, films and recording studios, and so on, (e) public libraries, museums and galleries and (f) performers and performing groups.
§ Mr. Brooke[pursuant to his reply, 6 May 1986]: It is not clear what the hon. Member means by "all cultural events". The information available in respect of the other categories he has mentioned is as follows:
134W
Year Tax due £ million Tax deductible Net tax payable/repayable Artists, authors etc. 1976–77 9.8 4.8 5.0 1977–78 12.1 5.5 6.6 1978–79 14.1 6.1 8.0 1979–80 27.2 11.7 15.5 1980–81 39.8 17.8 22.0 1981–82 43.5 19.9 23.6 1982–83 59.2 27.2 32.0 1983–84 68.6 31.1 37.5 1984–85 85.1 38.3 46.8 Public libraries, museums and galleries 1974.75 0.2 0.4 -0.2 1975–76 0.3 0.5 -0.2 1976–77 0.5 0.6 -0.1 1977–78 0.6 0.7 -0.1 1978–79 0.6 0.8 -0.2 1979–80 1.2 1.6 -0.4 1980–81 2.0 2.6 -0.6 1981–82 2.2 2.9 -0.7 1982–83 2.5 3.1 -0.6 1983–84 3.1 3.4 -0.3 1984–85 3.9 4.3 -0.4 Performers and performing groups 1974–75 5.3 2.1 3.2 1975–76 6.3 2.6 3.7 1976–77 7.8 3.5 4.3 1977–78 9.2 4.2 5.0 1978–79 9.1 4.5 4.6 1979–80 18.2 8.3 9.9 1980–81 26.1 13.3 12.8 1981–82 27.0 12.9 14.1 1982–83 34.5 16.4 18.1 1983–84 37.0 16.8 20.2 1984–85 43.2 20.7 22.5 Cinemas 1974.75 3.3 1.6 1.7 1975–76 4.1 2.2 1.9 1976–77 4.4 2.4 2.0 1977–78 5.7 2.9 2.8 1978–79 6.7 3.7 3.0 1979–80 13.6 7.3 6.3 1980–81 13.3 8.1 5.2 1981–82 15.2 9.2 6.0 1982–83 13.4 7.4 6.0 1983–84 11.4 6.5 4.9 1984–85 9.9 7.4 2.5
Year Tax due £ million Tax deductible Net tax payable/ repayable Theatres, music halls etc.; radio and television services, films and recording studios etc. 1974–75 28.9 19.9 9.0 1975–76 31.5 22.0 9.5 1976–77 39.1 26.7 12.4 1977–78 49.5 32.8 16.7 1978–79 53.2 37.4 15.8 1979–80 96.8 72.2 24.6 1980–81 151.7 109.9 41.8 1981–82 182.8 136.7 46.1 1982–83 245.5 185.3 60.2 1983–84 271.8 215.4 56.4 1984–85 309.4 249.1 60.3 In so far as the tax deductible figures for 1984–85 may contain import value added tax that cannot be separately identified, the net tax figures for that year may be distorted.