§ Mr. David NicholsonTo ask the Chancellor of the Exchequer what would be the extra revenues from a further (i) 5p, (ii) 7½p and (iii) 10p on the standard and higher rate of income tax, at current yields; and what would be the annual extra amounts a married man with two children aged under 11 years would pay on annual earnings of (1) £8,000, (2) £10,000, (3) £12,000 and (4) £14,000 if the tax rate were raised by(a) 5p, (b) 7½p or (c) 10p.
§ Mr. LilleyInformation is in the tables. The figures reflect independent taxation and the levels of allowances and thresholds announced in the 1990 Budget. Estimates in table 1 are based on a projection of the 1987–88 survey of personal incomes and are provisional. They do not take account of the consequential effects on capital gains tax.
Table 1: Revenue yield in a full year of increases in the basic and higher rates of income tax, at 1990–91 levels of income Increase in basic and higher rates Yield (£ billion) (a) 5 pence on both 10.2 (b) 7½ pence on both 15.4 (c) 10 pence on both 20.5
Table 2: Increase in tax liability for 1990–91 of married man1— £1 per year Earnings Increase in both basic and higher rates2 of income tax: 5 pence 7½ pence 10 pence 8,000 163.75 245.63 327.50 10,000 263.75 395.63 527.50 12,000 363.75 545.63 727.50 14,000 463.75 695.63 927.50 1Calculations assume that the married man has no other forms of income and that he does not receive any tax allowances or reliefs other than the personal allowance plus the married couple's allowance. Child benefit is not affected by the proposed tax changes. 2 At the levels of earnings given, higher rate tax would not apply.
§ Mr. MeacherTo ask the Chancellor of the Exchequer if he will publish in theOfficial Report a list of all those state benefits and payments which are taxable, giving the number of tax units paying tax and the amount of revenue gained for each benefit or payment for the latest available year together with the date at which the benefit or payment first became taxable.
§ Mr. Lilley[holding answer 5 March 1990]: I regret the delay in replying. The table lists the benefits liable to tax 107W with the date from which they became taxable together with provisional estimates, where available, of the number of single people and married couples liable to income tax in receipt of each benefit for the whole or part of 1989–90. Table 9.6 of the 1989 edition of "United Kingdom National Accounts" (the CSO Blue Book) provides an estimate of income tax attributable in total to these benefits, applying the recipients' average rate of income tax on the whole of their income to the amount of benefit received.
Taxable Benefit Date from which taxable Taxpayers receiving benefit in 1989–90 (thousands) Industrial death benefit pre 1950 n.a.6 Retirement pension pre 1950 2,750 Widow's benefit pre 1950 250 Old person's pension 21970 n.a.6 Invalid care allowance 31976 n.a.6 Job Release allowance 41977 n.a.6 Income support1 31982 750 Unemployment benefit 31982 1,250 Statutory sick pay 51983 2,500 Statutory maternity pay 51987 n.a.6 1 Formerly supplementary benefit. 2 2 November. 3 5 July. 4 3 January. 5 6 April. 6 Not available.