Statutory Instruments (Hansard, 23 January 1997)

§ Mr. Streeter

The Acts, with the numbers of statutory instruments registered with the Statutory Publications Office up to and including 7 October 1996, are as follows:

For one-earner family with two dependent children in east midlands:
percentage of earnings paid in
	Weekly earnings	Direct taxes¹	VAT	Other indirect taxes	Total tax (East Midlands)	Total tax (GB)
1988–89	£232.65	19.3	4.8	8.0	32.1	33.3
1989–90	£256.25	19.5	4.8	7.4	31.8	32.9
1990–91	£281.15	19.6	4.7	7.3	31.6	32.7
1991–92	£299.35	19.3	5.2	7.5	32.1	33.2
1992–93	£311.65	18.6	5.4	7.3	31.3	32.7
1993–94	£321.10	18.7	5.3	7.4	31.4	32.8
1994–95	£331.60	20.2	5.5	8.1	33.8	34.8
1995–96	£345.55	21.0	5.4	8.5	34.8	35.7
1996–97	£358.51	20.0	5.6	8.8	34.5	35.3
1997–98	£372.85	19.4	5.7	9.2	34.3	35.1
¹ Income tax and NICs.

1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and have income only from employment. The earner is assumed to pay class 1 national insurance contributions at the contracted-in rate. Child benefit is deducted from income tax.

2. Earnings are the average gross weekly earnings of all full-time males in the east midlands on adult rates with pay unaffected by absence. The figures are from the new earnings survey and financial year figures are the average of the two April figures. Estimates of earnings in 1996–97 and 1997–98 are based on earnings growth assumptions for Great Britain of 3¾ per cent. in 1996–97 and 4 per cent. in 1997–98 in line with the illustrative assumptions set out in the Financial Statement and Budget Report 1997–98.

3. Figures for indirect taxes include estimates of the effects of the main intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.

4. Figures for indirect taxes since 1994–95 are estimated from expenditure patterns in the 1994–95 family expenditure survey uprated to later years using forecasts of aggregate tax receipts. For years before 1994–95, the 1985 family expenditure survey was used. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.

5. Estimates of indirect taxes are very approximate, even where figures are shown, because spending patterns vary widely between households with the same composition and income. Because of sampling variation, there can be substantial differences between estimates obtained from family expenditure surveys for different years, so reliable comparisons cannot be made between the estimates for different years.