HC Deb 01 December 1989 vol 162 cc459-60W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what assessment he has made of the part that increases in income of employees has played in the increase in the rate of inflation since 1987; whether he will publish in theOfficial Report a list of the micro-sectors that have been mainly responsible for income-push inflation; what measures he has taken to ensure that employers in these sectors take the lead in holding incomes down; what

Income tax, NICS and indirect tax payments at multiples of average earnings, 1988–89
Multiples of Average Earnings
0.5 0.75 1 1.5 2 3 4 5 7 10 20
Single
Amounts, £ per week
Income Tax 19.51 35.53 51.55 83.59 129.33 231.85 334.37 436.89 641.93 949.49 1,974.69
NICS 11.53 17.30 23.07 27.45 27.45 27.45 27.45 27.45 27.45 27.45 27.45
VAT 9.52 12.82 19.98
Other indirect 15.15 18.96 27.22
Domestic rates 7.68 9.35 12.99
Total 31.04 85.18 115.75 171.23 156.78 259.3 361.82 464.34 669.38 976.94 2,002.14
Percentage of earnings
Income Tax 15.2 18.5 20.1 21.7 25.2 30.2 32.6 34.1 35.8 37.0 38.5
NICS 9.0 9.0 9.0 7.1 5.4 3.6 2.7 2.1 1.5 1.1 0.5
VAT 5.0 5.0 5.2
Other indirect 7.9 7.4 7.1
Domestic rates 4.0 3.6 3.4
Total 24.2 44.4 45.1 44.6 30.6 33.7 35.3 36.2 37.3 38.1 39.1
Married, no children
Amounts, £ per week
Income Tax 12.35 28.37 44.39 76.43 117.87 220.39 322.91 425.43 630.47 938.03 1,963.23
NICS 11.53 17.30 23.07 27.45 27.45 27.45 27.45 27.45 27.45 27.45 27.45
VAT 8.73 12.32 20.12
Other indirect 16.82 20.63 28.89
Domestic rates 7.52 8.73 11.37
Total 23.88 78.74 109.14 164.26 145.32 247.84 350.36 452.88 657.92 965.48 1,990.68
Percentage of earnings
Income Tax 9.6 14.8 17.3 19.9 23.0 28.7 31.5 33.2 35.1 36.6 38.3
NICS 9.0 9.0 9.0 7.1 5.4 3.6 2.7 2.1 1.5 1.1 0.5
VAT 4.5 4.8 5.2
Other indirect 8.8 8.1 7.5
Domestic rates 3.9 3.4 3.0
Total 18.6 41.0 42.6 42.7 28.3 32.2 34.2 35.3 36.7 37.7 38.8
Married, both working
Amounts, £ per week
Income Tax 0 15.84 31.86 63.90 97.83 173.19 260.33 361.18 566.22 873.78 1,898.98
NICS 7.95 15.76 21.02 34.60 45.90 54.90 54.90 54.90 54.90 54.90 54.90
VAT 9.87 13.82 21.42
Other indirect 19.54 22.99 29.65
Domestic rates 9.29 9.92 11.14
Total 7.95 70.30 99.61 160.71 143.73 228.09 315.23 416.08 621.12 928.68 1,953.88
Percentage of earnings

success he expects those measures to have in 1990; and what impact he expects them to have on the rest of the economy.

Mr. Ryder

The Government are maintaining a tight monetary stance, backed up by a sound fiscal position, to bear down on inflationary pressures. The Autumn Statement forecast expects inflation to fall to 5¾ per cent. by the fourth quarter of 1990.