HC Deb 03 February 1994 vol 236 cc829-30W
Mr. Kirkwood

To ask the Chancellor of the Exchequer if he will update, to take account of the 1994 Budget, the information on tax changes contained in his answer to the hon. Member for Oldham, West (Mr. Meacher) of 21 October 1986,Official Report, columns 812–14.

Mr. Dorrell

[holding answer 31 January 1994]: Readily available information on the annual reduction in income tax liability, compared with the 1978–79 indexed regime is given in the tables. The 1978–79 regime has been indexed by reference to the statutory formula and allowing for independent taxation. For the purpose of these calculations the indexed regime of 1978–79 is applied directly to the later income base. In practice, retention of the regime, indexed as appropriate, for the intervening year 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 income in 1993–94 (£) Number of individuals 1993–941 (million) Total reduction (£ million) Average reduction (£ per annum)
Under 5,000 3.30 460 140
5,000 to 10,000 8.20 3,100 380
10,000 to 15,000 6.10 4,600 740
15,000 to 20,000 3.90 4,300 1,080
20,000 to 30,000 3.20 5,200 1,600
30,000 to 50,000 1.30 3,400 2,540
50,000 to 80,000 0.31 2,500 7,910
Over 80,000 0.18 8,400 47,700
Total 26.70 31,800 1,200
1 Individuals liable to income tax under the 1978–79 indexed regime.

Average reduction in income tax per individual1 in 1994–95 compared with the 1978–79 indexed regime
Range of individual's income in 1994–95 (£) Number of individuals 1994–951 (million) Total reduction (£ million) Average reduction (£ per annum)
Under 5,000 3.10 390 130
5,000 to 10,000 8.10 2,900 360
10,000 to 15,000 6.10 4,100 680
15,000 to 20,000 4.00 4,000 1,000
20,000 to 30,000 3.50 5,100 1,470
30,000 to 50,000 1.50 3,200 2,160
50,000 to 80,000 0.34 2,400 7,190
Over 80,000 0.20 9,300 47,500
Total 26.80 31,400 1,200
1 Individuals liable to income tax under the 1978–79 indexed regime.