§ Mr. MaddenTo 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 answer to the hon. Member for Oldham, West (Mr. Meacher), on 3 March,Official Report, columns 123–24.
§ Mr. Dorrell[holding answer 26 June 1992]: 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.
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Average reduction in income tax per individual1 in 1992–93 compared with the 1978–79 indexed regime Range of individuals income in 1992–93 Number of individuals 1992–931 Total reduction Average reduction £ Million £ million £ per annum Under 5,000 3.1 500 150 5,000 to 10,000 7.9 3,200 400 10,000 to 15,000 6.2 4,500 730 15,000 to 20,000 4.1 4,300 1,060 20,000 to 30,000 3.2 5,000 1,590 30,000 to 50,000 1.2 3,600 2,960 50,000 to 80,000 0.35 3,100 9,200 Over 80,000 0.15 7,200 46,000 TOTAL 26.2 31,400 1,200 1 Individuals liable to income tax under the 1978–79 indexed regime.