HC Deb 09 May 1991 vol 190 cc554-5W
Mr. Kirkwood

To ask the Chancellor of the Exchequer if he will update, to take account of the 1991 Budget, the information on tax changes contained in the answer to the hon. Member for Oldham, West (Mr. Meacher), of 21 October 1986,Official Report, columns 812–14.

Mr. Maude

Latest estimates of the annual change in income tax liability resulting from the changes in tax rates, allowance, and thresholds are in the table. The 1978–79 income tax regime has been indexed to 1991–92 levels by reference to the statutory formula, and allowing for independent taxation.

For the purposes of these calculations the indexed regime of 1978–79 has been applied directly to the income base of 1991–92. In practice, retention of the 1978–79 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.

Reductions in income tax in 1991–92 compared with 1978–79 indexed regime
Range of individual's income in 1991–92, £ Number of individuals liable under the indexed regime in 1991–92 (million) Total reduction in tax compared with indexed regime, £ million Average reduction per individual at 1991–92 income levels, £ per annum
Under 5,000 3.7 480 130
5,000–10,000 8.4 2,900 350
10,000–15,000 7.1 4,600 650
15,000–20,000 4.1 3,800 950
20,000–30,000 2.9 4,200 1,400
30,000–50,000 1.2 3,300 2,800
Over 50,000 0.4 9,500 21,900
Total 27.8 28,700 1,000

Mr. Kirkwood

To ask the Chancellor of the Exchequer if he will update to 1991–92 the information on real net earnings provided in the answer to the hon. Member for Birkenhead (Mr. Field) of 10 April 1986,Official Report, columns 193–94.

Mr. Maude

The information is given in the tables.

Income Tax and Income Tax and NIC1 as percentages of gross earnings
Multiples of average earnings2
2/3 1 2 5 10
Single people
1956–57
Tax 10.4 16.6 24.8 40.5 55.2
Tax and NIC 14.0 18.9 26.0 41.0 55.4
1978–79
Tax 21.0 25.0 29.5 50.5 66.6
Tax and NIC 27.5 31.5 33.7 52.2 67.5
1991–923
Tax 17.9 20.3 26.0 34.4 37.2
Tax and NIC 25.3 28.2 30.7 36.3 38.1
Married men
1956–57
Tax 5.1 11.2 22.0 38.9 54.2
Tax and NIC 8.6 13.5 23.1 39.4 54.4
1978–79
Tax 15.4 21.3 27.2 48.8 65.7
Tax and NIC 21.9 27.8 31.4 50.5 66.5
1991–923
Tax 14.2 17.8 24.0 33.6 36.8
Tax and NIC 21.5 25.7 28.7 35.5 37.7

Changes in real net earnings after Income Tax and NIC (1956–57 = 100)
Multiples of average earnings
2/3 1 2 5 10
Single people
1978–79 124.9 125.3 132.8 120.1 108.3
1991–923 176.1 179.5 189.8 218.8 281.4
Married men
1978–79 126.8 123.9 132.4 121.1 109.0
1991–923 174.1 174.2 188.1 215.7 277.0
1 At the contracted-in rate
2 Full time adult males (all occupations)
3 Provisional