HC Deb 30 November 1989 vol 162 cc425-6W
58. Mr. Hind

To ask the Chancellor of the Exchequer if he will make a statement on the level of income tax collected by the Inland Revenue in 1978–79 to 1988–89 and on the proportion paid by the top 5 per cent. of earners in each case.

Mr. Lilley

Information is given in the table.

Total Income Tax Receipts and Tax Liability of Top 5 per cent, of Taxpayers as Percentage of Total Liability. 1978–79 to 1988–89
Year Total income tax receipts £ billion Income tax liability of the top 5 per cent, of taxpayers as a percentage of total liability1 Percentage
1978–79 18.7 24
1979–80 20.6 23
1980–81 24.3 24
1981–82 28.7 25
1982–83 30.4 25
1983–84 31.1 26
1984–85 32.5 26
1985–86 35.4 27
1986–87 38.5 29
1987–88 41.4 230
1988–89 43.4 229
1 Liability relates to personal incomes only whereas tax receipts include payments made by other sectors (e.g. income tax deducted from annual payments made by companies).
2 Provisional, based on projections of 1986–87 Survey of Personal Incomes.

Mr. Simon Hughes

To ask the Chancellor of the Exchequer what plans he has for cutting income tax; and if he will make a statement.

Mr. Lilley

I cannot anticipate my right hon. Friend the Chancellor of the Exchequer's Budget statement.

Mr. David Porter

To ask the Chancellor of the Exchequer what would be the additional monthly cost to the average household if the standard rate of income tax today were set at the same level as in 1979.

Mr. Lilley

If the basic rate of income tax were raised from its level of 25p in 1989–90 to 33p, the level in 1978–79, a married man on average male earnings would pay £68 per month more income tax. If his wife worked and was paid average female earnings, she would pay £47 more per month. The calculations assume that the couple are entitled to only the married man's allowance and wife's earned income allowance.

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