§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will update, to take account of the 1993 Budget, the information on tax changes contained in his answer to the hon. Member for Bradford, West (Mr. Madden) of 29 June 1992,Official Report, column 380.
§ Mr. DorrellLatest estimates of the annual change in income tax liability resulting from the changes in tax rates, 7W allowances and thresholds announced in the 1993 Budget are in the table. The 1978–79 income tax regime has been indexed to 1993–94 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 1993–94. 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 tax per individual1 in 1993–94 compared with the 1978–79 indexed regime Range of individual's income in 1993–94 (£) Number of individuals 1993–941 (million) Total reduction (£ million) Average reduction (£ per annum) Under 5,000 3.20 450 140 5,000 to 10,000 8.00 3,000 380 10,000 to 15,000 6.10 4,500 740 15,000 to 20,000 3.70 4,000 1,100 20,000 to 30,000 3.30 5,400 1,620 30,000 to 50,000 1.20 3,000 2,520 50,000 to 80,000 0.28 2,100 7,730 Over 80,000 0.14 6,400 45,500 Total 26.00 28,900 1,100 1 Individuals liable to income tax under the 1978–79 indexed regime.