Mr. Alan WilliamsTo ask the Chancellor of the Exchequer how much in tax concessions has been received by those on tax rates above 40 per cent. since June 1979 at constant prices to the latest available date; what estimates are available of the amount that has gone to each region and of the regional numbers of taxpayers in the tax bands above 40 per cent.; and if he will make a statement.
§ Mr. Lawson[holding answer 21 March 1988]: Income tax due from the top 2½ per cent. of taxpayers in 1978–79, the group liable at rates above 40 per cent., amounted to £3.4 billion, equivalent in real terms in 1988–89 to some £7.1 billion. In 1988–89, the tax due from the top 2½ per cent. of taxpayers will be about £9.0 billion — an increase of £2 billion, despite the reductions in tax rates and real increases in allowances since 1978–79. If the taxable incomes of the top 2½per cent. of taxpayers in 1988–89 were as they are now forecast to be, and at the same time were subject to 1978–79 income tax rates and allowances indexed to 1988-S9 levels by reference to the statutory formula, their liability would increase by £6 billion. However, the assumption on which this estimate is based is inherently implausible.
I regret that corresponding information for each region is not available. Estimates of the number of taxpayers paying tax at the 45 per cent. rate or above in 1985–86, the latest year for which regional information is available, are given in the table.
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Number of taxpayers1 in 1985–86 paying tax at the 45 per cent, rate or above Region '000 Northern 17 Yorkshire and Humberside 29
Region '000 North West 39 East Midlands 25 West Midlands 38 East Anglia 21 South East 291 South West 37 Wales 15 Scotland 40 Northern Ireland 11 United Kingdom2 570 1 Married couples counted as one unit. 2 Includes members of the forces and Merchant Navy and a small number of civil servants serving abroad who have not been allocated to regions.
Department Cost of London weighting 1£ million Number of staff receiving London weighting Proportion of staff in department receiving London weighting per cent. Non-industrials2 Agriculture, Fisheries and Food 3.72 2,940 30 Cabinet Office 1.78 1,160 71 Central Office of Information 1.06 700 87 Charity Commission 0.32 210 64 Crown Estate Office 0.06 40 75 Crown Office and Procurator Fiscal 0.00 0 0 Crown Prosecution Service3 3.35 2,520 72 Customs and Excise 7.69 6,410 25 Defence 20.16 16,540 18 Education and Science 2.01 1,350 55 Employment Group 12.15 10,160 17 Energy 1.26 830 81 Environment/Transport/PSA 15.27 12,160 34 Export Credits Guarantee Department 1.11 760 42 General Register Officer (Scotland) 0.00 0 0 Government Actuary 0.08 50 92 Health and Social Security 20.06 17,010 18 Home Office 12.28 9,730 28 Inland Revenue 15.21 12,940 19 Intervention Board for Agricultural Produce 0.00 0 0 Land Registry 1.09 1,230 17 Law Officer's Department 0.03 20 94 Lord Advocate's Department 0.03 20 89 Lord Chancellor's Department 5.30 3,940 38 National Investment and Loan Office 0.08 50 100 National Savings 0.24 160 2 Northern Ireland Office 0.16 110 65 Office of Arts and Libraries 0.08 60 98 Office of Fair Trading 0.43 310 98 Office of Gas Supply 0.02 20 100 Office of Population Census and Surveys 1.11 730 35 Ordnance Survey 0.12 140 5 Overseas Development Administration 1.40 950 64 Paymaster General 0.00 0 0 Privy Council 0.05 30 97 Public Record Office 0.43 400 98 Registers of Scotland 0.00 0 0 Registry of Friendly Societies 0.17 110 99 Royal Mint 0.02 10 4 Scottish Courts Administration 0.00 0 0 Scottish Courts Service 0.00 0 0 Scottish Office 0.03 20 0 Scottish Records Office 0.00 0 0 Stationery Office 0.54 360 18 Trade and Industry 10.76 7,770 64 Treasury 2.76 2,070 80 Treasury Solicitor's Department 0.62 410 95 Welsh Office 0.07 40 2