§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will publish a table showing the change in income tax in 1994–95 against the 1978–79 indexed regime broken down into the top 1 per cent., 5 per cent., 10 per cent. and bottom 50 per cent. of taxpayers showing the total and the average change.
§ Mr. DorrellThis calculation produces the figures in table A. But the comparison is hypothetical since if an indexed version of the 1978–79 tax regime had prevailed over the last 14 years the income base would not have grown in the way it has.
Table A Calculations using the 1994 income base Quantile group of taxpayers under the 1978–78 indexed regime Number of taxpayers Reduction in tax Average reduction Per cent. Thousands £ million £ Top 1 300 10,200 38,000 Top 5 1,300 13,900 10,400 Top 10 2,700 16,300 6,100 Bottom 50 13,400 4,300 320 All taxpayers 26,800 31,400 1,170 In contrast to these hypothetical figures, table B shows how the share of income tax actually paid by high income groups has risen since 1979, while the share of the income tax burden borne by low income tax payers has fallen.
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Table B Calculations using the income base for each year Per cent. Share of income tax in: Quantile group of taxpayers 1978–79 1994–95 Top 1 11 17 Top 5 24 34 Top 10 35 45 Bottom 50 18 13 All taxpayers 100 100