HC Deb 29 July 1988 vol 138 cc732-5W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for a married man with two children, one earner and no other allowances, the percentage in gross income taken in (a) direct taxes, including national insurance contributions less child benefit and (b) indirect taxation, including the retail prices index or other representative figure for rates, in the current financial year where the earnings of the married man are (i) three times average earnings, (ii) average earnings and (iii) 60 per cent, of average earnings and 45 per cent, of average earnings, in all cases with no other income; and if he will include the earnings figure in each case.

Mr. Norman Lamont

Figures for 1988–89 are given in the table.

Income tax3 less child benefit
Percentage of average earnings1 1988–89 Gross earnings (£ per week) National insurance contributions2 Single female parent Married female (sole earner) Married man (sole earner)
100 per cent. 4161.80 14.56 6.26 -6.26 6.26
75 per cent. 4121.35 10.92 -3.85 -14.50 -3.85
1 For full-time adult females (all occupations).
2 Not contracted out.
3 Deducting child benefit of £7.25 per week per child and assuming no reliefs or allowances other than personal allowances.
4 This figure assumes that earnings increase by 7½per cent, between 1986–87 and 1987–88 and by 6½ per cent, between 1987–88 and 1988–89.

Mr. Gordon Brown

To ask the Chancellor of the Exchequer if he will give the reduction in annual liability to(a) capital gains tax and (b) capital transfer tax and inheritance tax in (i) 1988–89 and (ii) the 1978–79 indexed regime, specifying in each case the total and average reduction per taxpayer as well as the number of taxpayers in each year.

Mr. Norman Lamont

The figures for capital transfer and inheritance tax are:

Reduction compared with the indexed 1978–79 regime Taxpayer numbers (thousands)
Total liability Average liability1 1978–79 indexed regime 1988–89 regime
£ million £
600 7,000 80 20
1 Calculated for the number of taxpayers under the 1978–79 indexed regime.

£ billion
Personal income taxes National insurance contributions Capital taxes Corporate taxes1 Local authority rates Central government expenditure taxes
1978–79 19.1 10.2 0.8 4.4 5.8 18.2
1979–80 21.1 12.0 1.0 6.7 6.9 25.2
1980–81 24.8 14.4 1.2 8.1 8.7 28.8
1981–82 29.2 16.5 1.6 10.6 11.0 33.6
1982–83 30.5 18.7 1.4 13.0 12.2 35.0

Taxes as a percentage of gross earnings for a married man with two children, one earner and no other allowances
Earnings
Proportion of average £ per week Income tax and NICs less child benefit Indirect taxes
(i) 3 times 734.10 29.9 n/a
(ii) Average 244.70 20.9 13.1
(iii) 60 per cent. 146.80 10.7 n/a
(iv) 45 per cent. 110.10 3.0 n/a

Notes:

The estimate of indirect taxes in derived from the 1985 expenditure survey and is based on the illustrative assumption that 10 per cent. of disposable income is saved. Local authority rates are not included. Estimates cannot reliably be made for income levels either (i) three times or (iii) 60 per cent or (iv) 45 per cent. of average earnings.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for the current financial year the amount of tax and national insurance contributions payable in the circumstances described in the question from the hon. Member for Great Grimsby on 5 April 1984, Official Report, column 630; and if he will include any credit for child benefit.

Mr. Norman Lamont

Information for households with two children is in the table.

The 1988–89 tax base is taken as given. It is not possible to determine to what extent changes in the tax regime between 1978–79 and 1988–89 may have affected the levels of transfers. I regret that it has not been possible to provide the figures for capital gains tax before the summer recess. I shall write to the hon. Member and place a copy of the letter in the Library.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for each financial year since 1978–79 the amount of tax raised by (a) personal income taxes, (b) national insurance contributions, (c) capital taxes, (d) corporate taxes, (e) indirect taxes and (f) rates; and if he will give his latest forecast for the current financial year on a full-year basis.

Mr. Brooke

[holding answer 27 July 1988]: The information is as follows:

Personal income taxes National insurance contributions Capital taxes Corporate taxes1 Local authority rates Central government expenditure taxes
1983–84 31.7 21.3 1.6 13.9 12.3 37.8
1984–85 33.3 22.7 1.7 18.0 12.9 40.6
1985–86 35.9 24.6 2.3 18.4 13.8 44.0
1986–87 38.5 26.6 2.8 14.8 15.6 48.5
1987–88 41.5 29.1 3.7 17.9 16.9 52.4
1988–92 42.1 31.6 4.7 19.9 19.0 55.4
1 Corporation tax (including advance corporation tax but excluding corporation tax on capital gains), petroleum revenue tax, oil royalties, IBA levy and supplementary petroleum duty.
2 Forecast.

The forecasts are from the 1988 Financial Statement and Budget Report. All figures are on an accruals basis as in the national income and expenditure accounts.