HC Deb 19 November 2003 vol 413 cc1097-8W
Mr. Flight

To ask the Chancellor of the Exchequer (1) pursuant to his statement of 13 November 2003,Official Report, column 403, on personal tax and benefit changes since 1997, if he will (a) list the personal tax and benefit changes since 1997 that have benefited householders and (b) state the net change in Government revenue resulting from each personal tax and benefit change for each applicable year since 1997; [140033]

(2) pursuant to his statement of 13 November 2003, Official Report, column 403, on personal tax and benefit changes since 1997, what definition he used of householders; and how many householders there were in each year since 1997; [140034]

(3) pursuant to his statement of 13 November 2003, Official Report, column 403, if he will (a) list the assumptions made and (b) set out the calculations used in coming to the conclusion on benefits to householders of personal tax and benefit changes since 1997. [140065]

John Healey

The Government have introduced a number of personal tax and benefit measures since 1997 that have benefited households. As I said in my answer of 13 November 2003,Official Report, column 403, householders are, on average, £775 a year better off. Full details of these measures and their effect on Exchequer revenues are set out in the relevant Financial Statement and Budget reports, copies of which are available in the Library of the House. These measures include cutting the basic rate of income tax to 22 per cent. the lowest rate for 70 years, introducing the 10p starting rate of income tax, over-indexing age-related personal allowances and introducing the working and child tax credits to support families and tackle child poverty.

The definition of a household can be found on page 173 of the 2002 edition of Family Spending a copy of which is available in the Library of the House. Table 1.1 of this publication gives an estimate of the number of households in 2001–02; figures for earlier years are given in previous editions.

An estimate of the average gain is calculated by comparing net household incomes after the operation of 2003–04 direct tax and benefit system with those after the operation of the 1997–98 direct tax and benefit system, uprating parameters to 2003–04 levels in line with changes in prices, and excluding the effect of the abolition of mortgage interest relief at source (MIRAS).