§ Mr. Simon HughesTo ask the Chancellor of the Exchequer if he will show for 1990–91 those ranges of earnings within which the burden of income tax plus national insurance is less than in 1978–79.
§ Mr. Lilley[holding answer 4 April 1990]: Since income tax rates have been reduced and the main personal allowances increased by substantially more than the rate of inflation, taxpayers will now pay a lower proportion of their income in tax than in 1978–79 unless their incomes have risen even more rapidly than allowances. Average earnings have risen rather more than this.
In 1990–91, for taxpayers of working age whose incomes have increased in line with earnings, average rates of income tax and national insurance contributions are lower than in 1978–79 for everyone except some married men with earnings up to and including three-quarters of the average. On the same basis, real take-home pay is higher than in 1978–79 at all levels of earnings.
§ Mr. Simon HughesTo ask the Chancellor of the Exchequer if he will specify the distribution of gains in the Budget for each item where(a) tax or (b) national insurance changes were made other than normal indexation, according to income bands: less than £5,000 per year; £5,000 to £7,500; £7,500 to £10,000; £10,000 to £12,500; £12,500 to £15,000; £15,000 to £20,000; £20,000 to £30,000; £30,000 to £50,000 and above £50,000; and if he will indicate the percentage of total (i) tax and (ii) national insurance changes accruing to each group and the percentage of the total numbers of (1) taxpayers and (2) national insurance that each group comprises.
§ Mr. Lilley[holding answer 4 April 1990] : Information relating to income tax rates and allowances and national insurance contributions is in the table. Losses result solely from the higher rate income tax threshold remaining at £20,700. It is not possible to provide a breakdown by income distribution of gains from the doubling of the blind person's allowance. Estimates are based on a projection of the 1987–88 survey of personal incomes and are therefore provisional.