HC Deb 30 June 1988 vol 136 cc324-6W
Mr. Gordon Brown

To ask the Chancellor of the Exchequer what is the number and proportion of tax units who will be paying more income tax and national insurance in real terms in 1988–89 than in 1978–79; and what is the number of tax units who will he paying a higher proportion of their gross income in tax and national insurance in 1988–89 than in 1978–79.

Mr. Norman Lamont

[holding answer 23 May 1988]: I regret the delay in replying. Information is not available to provide estimates about the experience of individuals in the form requested.

The tables are therefore based on the distributions in 1978–79 and 1988–89 of the gross earnings and investment income of married couples and single people aged under 65 who would be liable to pay income tax or national insurance contributions. The changes between the two years in average liability in real terms, and the proportions of income paid in income tax and national insurance contributions in each year, are shown for the corresponding deciles of each distribution. The estimates are provisional.

Single people aged under 65 liable to income tax and national insurance contributions ranged by gross income
Distribution by gross income deciles2 Real change1 in average liability to income tax and NIC 1978–79 to 1988–89 Per cent. Proportion of gross income paid in income tax and NIC
1978–79 Per cent. 1988–89 Per cent.
Lowest 10 per cent. -29 9 6
Second -5 14 12
Third +4 18 16
Fourth +10 21 20
Fifth +13 23 22
Sixth +10 25 2
Seventh +11 26 23
Distribution by gross income deciles2 Real change1 in average liability to income tax and NIC 1978–79 to 1988–89 Per cent. Proportion of gross income paid in income tax and NIC
1978–79 Per cent. 1988–89 Per cent.
Eighth +15 27 24
Ninth +14 28 24
Highest 10 per cent. +20 32 26
All 13 25 22
1 Calculated by reference to the forecast movement in the index of retail prices between 1978–79 and 1988–89.
2Each decile in 1978–79 contains 0.81 million single people and in 1988–89 0.89 million.
Married Couples and Single People Aged Under 65 Liable to Income Tax and National Insurance Contributions Ranged by Gross Income
Distribution by Gross Income Real change1 in average liability to income tax and NIC Proportion of Gross Income paid in income tax and NIC
Deciles2 1978–79 to 1988–89 1978–79 1988–89
per cent. per cent. per cent.
Lowest 10 per cent. -19 12 9
Second -3 18 15
Third +2 21 19
Fourth +1 23 20
Fifth +7 23 21
Sixth +7 23 21
Seventh +12 23 21
Eighth +15 24 21
Ninth +20 25 22
Highest 10 per cent. +26 31 26
All 15 25 22
1 Calculated by reference to the forecast movement in the index of retail prices between 1978–79 and 1988–89.
2 Each decile in 1978–79 contains 1.95 million married couples and single people and in 1988–89 1.96 million.
Married Couples Aged Under 65 Liable to Income Tax and National Insurance Contributions Ranged by Gross Income
Distribution by gross income Real change1 in average liability to in- come tax and NIC 1978–79 lo 1988–89 Percentage Proportion of gross income paid in income tax and NIC
Deciles2 1978–79 Percentage 1988–89 Percentage
Lowest 10 per cent. -11 11 9
Second -3 18 15
Third +2 20 17
Fourth +5 22 19
Fifth +12 22 20
Sixth +16 23 20
Seventh + 18 23 21
Eighth + 23 24 22
Ninth + 24 25 22
Highest 10 per cent. + 30 32 27
All 19 24 22
1 Calculated by reference to the forecast movement in the index of retail prices between 1978–79 and 1988–89.
2Each decile in 1978–79 contains 1.14 million married couples and in 1988–89 1.07million.