HC Deb 07 June 1988 vol 134 cc521-2W
Mr. Nicholas Bennett

To ask the Chancellor of the Exchequer what estimate he has as to the total amount of additional revenue which would be collected if child benefit were to be counted as part of taxable earnings; and what this sum would represent in terms of a reduction in the standard rate of income tax.

Mr. Norman Lamont

The income tax liability arising from taxing child benefit in 1988–89 would be about £1,100 million. This estimate assumes that child benefit received by married couples would be taxed as the husband's income. A reduction of Ip in the basic rate of tax would cost about £1,400 million in a full year at 1988–89 levels of income.

Band of gross income Families receiving child benefit Number of children Child benefit expenditure
(thousands) (per cent.) (thousands) (per cent.) (thousands) (per cent.)
Under £5,000 560 (8.3) 780 (6.4) 290 (6.4)
£5,000 to £10,000 1,770 (26.2) 3,350 (27.6) 1,260 (27.6)
£10,000 to £15,000 1,830 (27.1) 3,210 (26.5) 1,210 (26.5)
£15,000 to £20,000 1,220 (18.1) 2,280 (18.8) 860 (18.8)
£20,000 to £25,000 650 (9.7) 1,150 (9.5) 430 (9.5)
£25,000 to £50,000 640 (9.4) 1,180 (9.8) 450 (9.8)
Above £50,000 80 (1.2) 180 (1.5) 70 (1.5)
6,750 (100.0) 12,120 (100.0) 4,570 (100.0)

Notes:

(1) Estimates are based on the 1985 family expenditure survey, supplemented by the survey of personal incomes, and updated to 1988–89 levels

and existing woodland, as well as land intended for new planting or restocking.

2. The areas of land shown as withdrawn include cases in which applicants decided not to proceed because of objections or modifications to their proposals put forward by the Forestry Commission or consulted authorities which were expected to result in the application being refused in whole or in part.