§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what additional annual income net of tax and national insurance would result from(a) a 2 pence cut in the basic rate of income tax and (b) the reduction of all high rate income tax bands to 40 per cent. for (i)a person, (ii)an income taxpayer, (iii)a household and (iv)average family of four.
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§ Mr. Norman Lamont[pursuant to his reply, 8 February 1988, c. 88]: I regret that the table given with my reply to
Increase in income after tax and national insurance (£ per annum) compared with indexation in 1988–89 Multiple of average male earnings1 Increase derived from: ½ ¾ 1 1½ 2 5 (a) 2 pence cut in basic rate (i)single 77 141 204 331 372 372 (ii)married couple wife not earning1 48 112 176 303 372 372 (iii)married couple wife earning2 82 188 294 534 658 744 (b) reduction of all higher rates of income tax to 40 per cent. (i)single — — — — 87 5,971 (ii)married couple wife not earning — — — — 15 5,685 (iii)married couple wife earning2 — — — — 87 7,794 1 Average male earnings assumed to be £244.70 per week; an increase of 6.5 per cent. on 1987–88 in line with the assumptions used by the Government Actuary for reviewing National Insurance contributions (paragraph 3.02 of the Autumn Statement 1987). 2 Assuming that the wife's earnings are the same multiple of average earnings as her husband's.