§ Mr. KirkwoodTo 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.
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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.