HC Deb 04 July 1988 vol 136 cc473-4W
Mr. Gordon Brown

To ask the Chancellor of the Exchequer if he will give for each of the(a) top 1 per cent., (b) top 5 per cent., (c) bottom 90 per cent., (d) bottom 60 per cent., (e) bottom 50 per cent., (f) bottom 30 per cent. and (g) bottom 25 per cent. of taxpayers the total amount of income before and after tax for 1988–89, giving for the bottom 25 per cent. and bottom 30 per cent. the equivalent figures for 1978–79 and 1987–88.

Mr. Norman Lamont

[holding answer 7 June 1988]: Estimates for 1978–79 and provisional estimates for 1987–88 and 1988–89 are given in the table. All estimates are based on information reported to tax offices and collected through the annual surveys of personal incomes. Estimates for 1978–79 exclude employees' contributions to occupational pension schemes and some investment income on which tax is deducted at source.

Taxpayers1 Income in 1988–89
Group of taxpayers1 Income before tax Income after tax
(£ billion) (£ billion)
Top 1 per cent. 18.2 12.4
Top 5 per cent. 48.5 35.9
Bottom 90 per cent. 202.1 175.6
Bottom 60 per cent. 98.6 87.7
Bottom 50 per cent. 74.7 67.1
Bottom 30 per cent. 36.2 33.5
Bottom 25 per cent. 28.5 26.6
Taxpayers1 Income in 1987–88 and 1978–79
1987–88
Bottom 30 per cent. 32.6 30.0
Bottom 25 per cent. 25.6 23.8
1978–79
Bottom 30 per cent. 14.5 13.2
Bottom 25 per cent. 11.4 10.5
1 Married couples and single people.

Mr. Gordon Brown

To ask the Chancellor of the Exchequer (1) if he will give (i) the total unearned and (ii) the total earned income of(a) the top 1 per cent., (b) the top 5 per cent., (c) the top 20 per cent., (d) the bottom 70 per cent. and (e) the bottom 50 per cent. of taxpayers for 1978–79 and 1988–89, at constant prices;

(2) if he will give the average unearned income of (a) taxpayers and (b) non-taxpayers for 1979 and 1988 at constant prices; and what is the average unearned income for 1988–89 of someone in: the top 1 per cent., (b) the top 5 per cent., (c) the top 20 per cent., (d) the bottom 70 per cent. and (e) the bottom 50 per cent. of taxpayers in 1988–89.

Mr. Norman Lamont

[holding. answers 10 June 1988]:Estimates are given in the table's. Those for 1988–89 are based on a projection of the 1985–86 survey of personal incomes and are provisional. All estimates are subject to a large degree of uncertainty since some investment income on which tax is deducted at source is not reflected in the survey.

Average Investment Income Received per tax unit 1
Group of Income Tax payers 1988–89 £ per year
Top 1 per cent. 22,450
Top 5 per cent. 8,140
Top 20 per cent. 3,250
Bottom 70 per cent. 440
Bottom 50 per cent. 410
All taxpayers 1,050
less than
Non-taxpayers 10
1978–79 at 1988–89 price levels £ per year
All taxpayers 500
less than
Non-taxpayers 10
1 married couples and single people.

Total investment income and earned income at 1988–89 price levels
(£ billion)
Group of income tax payers Investment 1978–79 income Earned income Investment 1988–89 income Earned income
Top 1 per cent. 2.5 8.0 4.7 13.5
Top 5 per cent. 4.9 26.3 8.5 39.9
Top 20 per cent. 7.0 74.9 13.6 103.6
Bottom 70 per cent. 3.1 103.5 6.5 120.2
Bottom 50 per cent. 2.2 61.1 4.2 70.4