§ Mr. KirkwoodTo ask the Chancellor of the Exchequer if he will update, to take account of the 1992 Budget, the information on tax changes contained in his reply of 21 October 1986 to the hon. Member for Oldham, West (Mr. Meacher),Official Report, columns 807–8.
§ Mr. Dorrell[pursuant to his reply, 22 June 1992, c. 4]: I regret that, due to a typographical error, one of the figures in the table was incorrect. The answer should read as follows:
Latest estimates of the annual change in income tax liability resulting from the changes in tax rates, allowances and thresholds announced in the 1992 Budget are in the table. The 1978–79 income tax regime has been indexed to 1992–93 levels by reference to the statutory formula, and allowing for independent taxation.
For the purposes of these calculations the indexed regime of 1978–79 is applied directly to the income base of 1992–93. In practice, retention of the regime indexed as appropriate for the intervening years would have led to changes in the income base.
Average reduction in income lax per individual1 in 1992–93 compared with the 1978–79 indexed regime Range of individual's income in 1992–93 Total reduction Average reduction £ £ million £ per annum Under 5,000 500 150 5,000 to 10,000 3,200 400 10,000 to 15,000 4,500 730 15,000 to 20,000 4,300 1,060 20,000 to 30,000 5,000 1,590 30,000 to 50,000 3,600 2,960 Over 50,000 10,300 21,000 TOTAL 31,400 1,200 1 Individuals liable to income tax under the 1978–79 indexed regime.