§ Mr. GibbTo ask the Chancellor of the Exchequer if he will recalculate the figures used in paragraph 1.26 of the Red Book taking into account his July 1997 Budget and using an assumption for private car use of 8,300 miles in an average 1600cc car. [80855]
§ Dawn PrimaroloThe impact of Budget 97, Budget 98 and Budget 99 measures on households is as follows
over 20 million households gain, of which 7 million are households with children and 7 million are pensioner households;on average, households will be £350 a year better off;families with children will on average be £690 a year better off;poorer families will also benefit: 700,000 children will be taken out of poverty;working households will on average be £410 a year better off;the new lop rate of tax will halve the tax bill for 1.8 million, of whom 1.5 million are low-paid employees;the Working Families Tax Credit will on average give low earning families an extra £24 a week, compared with Family Credit.All the figures are relative to indexation and are in 1999–2000 prices. They reflect the impact on disposable income of measures included in the 1999, 1998 and July 1997 Budgets and taking effect over the four years from 1998–99, plus the impact of the national minimum wage. They are based on data from the ONS Family Expenditure Survey, the DSS Family Resources Survey and Inland Revenue's Survey of Personal Incomes.
Compared with the Red Book, the only extra measure included is the cut in the mortgage interest relief (MIR) tax credit rate from 15 per cent. to 10 per cent. which was announced in the July 1997 Budget and came into force in April 1998.
Estimating the impact of indirect taxes is imprecise as spending patterns vary widely between households with the same composition and income, with the consumption 337W of the majority of goods and services far from universal. For example, just over half the adult population are in households paying vehicle excise duty.
§ Mr. MaudeTo ask the Chancellor of the Exchequer (1) if he will estimate the effect in(a) 1999–2000 and (b) 2000–01 of his budgets to date on a married pensioner couple with a combined pension income of £18,000 plus £4,000 in dividend income, assuming that they drive 8,300 miles each year in a 1.6 litre car registered in 1974 and smoke 20 cigars each week; [78753]
(2) if he will estimate the effect in (a) 1999–2000 and (b)2000–01 of his budgets to date on a married couple in England with one partner who smokes 20 cigarettes a day earning £25,000 per annum and the other earning £5,000 per annum, assuming that they have a mortgage of £40,000 and drive 8,300 miles each year in a two litre car with one 18 year old child in his first year of a four-year course at university in Scotland;[78751]
(3) if he will estimate the effect in (a) 1999–2000 and (b) 2000–01 of his budgets to date on a married couple with one partner earning £15,000 per annum as a self-employed road haulier who drives a 38-tonne diesel lorry 75,000 miles each year and the other partner being non-earning with two children aged 15 and 16, assuming that they have a £45,000 mortgage and smoke 20 cigarettes a day between them; [78750]
(4) if he will estimate the effect in (a) 1999–2000 and (b) 2000–01 of his budgets to date on a non-smoking married couple with one partner earning £50,000 per annum and the other earning £4,000 per annum in dividend income, assuming that they have a mortgage of £80,000 and drive 8,300 miles each year in a two litre car. [78752]
§ Dawn PrimaroloInformation on the effect of the Budget on individuals and households is published in the Red Book and accompanying press notices. The reply to the hon. Member for Bognor Regis and Littlehampton (Mr. Gibb) sets out changes in disposable income after taking account of the effects of the last two Budgets.
Estimating the impact of indirect taxes is imprecise as spending patterns vary widely between households with the same composition and income, with the consumption of the majority of goods and services far from universal. For example, only around one third of adults are smokers, just over half the adult population are in households paying vehicle excise duty and around 10 per cent. of households pay air passenger duty.
This can be contrasted with direct taxes and benefits where at specified earnings and for particular household types there is a known benefit entitlement or tax liability.
The 1998 and 1999 Red Books set out the effect of the last two Budgets on:
cigarettes and cigars (1998 table 5.4—page 81), (1999 table 1.10— page 110);for road fuels (1998 table 5.2—page 75), (1999 table 1.9—page 109);and VED HM Treasury Budget Press Notice number 16 (1998) and number 7 (1999).
§ Mr. GibbTo ask the Chancellor of the Exchequer if he will list the assumptions used for the purposes of the calculations in paragraph 1.26 of the Red Book. [80852]
338W
§ Dawn PrimaroloAll the figures given in paragraph 1.26 of the Budget 99 Report (the Red Book) are relative to indexation and are in 1999–2000 prices. They reflect the impact on disposable income of measures included in the 1999 and 1998 Budgets and taking effect over the three years from 1999–2000, plus the impact of the national minimum wage.
The figures are based on data from the ONS Family Expenditure Survey, the DSS Family Resources Survey and Inland Revenue's Survey of Personal Incomes.
§ Mr. GibbTo ask the Chancellor of the Exchequer what assumptions were used for(a) car mileages and (b) pension contributions in the calculations used in paragraph 1.26 of the Red Book. [80851]
§ Dawn PrimaroloThe figures in the Red Book are based on UK household expenditure and income patterns from the ONS Family Expenditure Survey, the DSS Family Resources Survey and Inland Revenue's Survey of Personal Incomes.