Income Tax (Hansard, 6 March 1992)

§ Mr. Rowe
To ask the Chancellor of the Exchequer if he will publish a table showing the yield from income tax against the basic rate for each year from 1985–86 to 1990–91.

§ Mr. Maude
The information is in the table:
319W

£ billion

Tax liability

Year Total tax liability At the basic rate At the higher rate Of which excess over the basic rate

1985–86 38.8 33.5 5.2 2.1

1986–87 42.8 36.2 6.6 2.8

1987–88 45.3 37.4 7.9 3.7

1988–89 46.5 38.0 8.5 3.2

1989–90 53.4 43.0 10.5 3.9

1990–91 59.4 46.8 12.6 4.7

¹ Latest estimate based on a projection of the 1989–90 Survey of Personal Incomes.

§ Mr. David Shaw
To ask the Chancellor of the Exchequer (1) what would be the reduction in disposable income in an average size constituency in(a) England, (b) Scotland, (c) Wales and (d) the United Kingdom, assuming average levels of income from savings and employment as a result of (i) introducing a 9 per cent. surcharge tax on (ii) all savings and (iii) savings over £30,000 and (iv) increasing the top rate of income tax to 50 per cent;
(2) what would be the increase in disposable income in an average size constituency in (a) England, (b) Scotland, (c) Wales and (d) the United Kingdom, assuming average levels of income from savings and employment as a result of (i) increasing all tax allowances by the rate of inflation and (ii) reducing the rate of income tax by 1p.

§ Mr. Maude
Available estimates at 1991–92 levels of income, which exclude any behavioural effects which might result, are given in the table. I regret that separate data for England, Scotland and Wales are not available.

Total change in disposable income in United Kingdom (£ billion) Average change per constituency¹ (£ million)

9 per cent. surcharge on all investment income -2.6 -3.9

9 per cent, surcharge on income from savings of over £30,000 -1.3 -2.0

Increase in higher rate of tax to 50 per cent. -3.3 -5.0

Increase in all income tax allowances and thresholds by 4.5 per cent. + 1.5 + 2.3

Reduction of lp in basic rate + 1.9 + 3.0

¹ Column 1 divided 650— the number of parliamentary constituencies.

£ billion
		Tax liability
Year	Total tax liability	At the basic rate	At the higher rate	Of which excess over the basic rate
1985–86	38.8	33.5	5.2	2.1
1986–87	42.8	36.2	6.6	2.8
1987–88	45.3	37.4	7.9	3.7
1988–89	46.5	38.0	8.5	3.2
1989–90	53.4	43.0	10.5	3.9
1990–91	59.4	46.8	12.6	4.7
¹ Latest estimate based on a projection of the 1989–90 Survey of Personal Incomes.

	Total change in disposable income in United Kingdom (£ billion)	Average change per constituency¹ (£ million)
9 per cent. surcharge on all investment income	-2.6	-3.9
9 per cent, surcharge on income from savings of over £30,000	-1.3	-2.0
Increase in higher rate of tax to 50 per cent.	-3.3	-5.0
Increase in all income tax allowances and thresholds by 4.5 per cent.	+ 1.5	+ 2.3
Reduction of lp in basic rate	+ 1.9	+ 3.0
¹ Column 1 divided 650— the number of parliamentary constituencies.