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Outward Investment
Mr. Sillars : To ask the Chancellor of the Exchequer if he will calculate and show outward investment from the United Kingdom in each year since 1975 ; and if he will indicate the recipient countries.
Mr. Norman Lamont : Estimates of outward investment (direct, portfolio and other, mainly short-term, investments) are published in United Kingdom balance of payments 1988 edition (Transactions in United Kingdom external assets, 1975 to 1987, in table 1.1) and in Economic Trends, June 1989 (latest data to 1988 in table A1). Comprehensive estimates of the main recipient countries and areas are available only for direct investment (investment in overseas branches and subsidiary and associated companies), which are published in the Business Monitor series, M4, Overseas Transactions. Copies of these publications are in the Library.
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North Sea Oil
Mr. Sillars : To ask the Chancellor of the Exchequer if he will show the value to the Treasury of revenue from North sea oilfields in each year since 1978 ; and if he will show what that represented in each year as a proportion of gross national product.
Mr. Norman Lamont : The value of North sea oil revenues is published by the Department of Energy in the annual Brown Book. Gross national product statistics are available in the Blue Book published by the Central Statistical Office.
Rateable Values, City of London
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the gross and net aggregate rateable value of those offices in the City of London referred to in his answer of 14 November 1988, Official Report, columns 525-26, the current poundage, and his Department's estimate of the current rental and capital value per square foot.
Mr. Lilley : The table below provides, with one exception, the details requested. An estimate of the current capital value per square foot could not be produced without a disproportionate expenditure of time and resources.
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Building Rateable value Rate in £ Estimated rental valu
per square foot
|Gross £ |Net £ |£
-----------------------------------------------------------------------------------
National Westminster Tower |4,909,000 |4,090,805 |1.64 |65
Britanic House West |3,050,000 |2,541,638 |1.64 |45
Bank of England, New Change |1,537,651 |1,281,291 |1.64 |45
Bank of England, Bank |3,150,000 |2,624,972 |1.64 |65
Britanic House |3,050,000 |2,541,638 |1.64 |45
81 Newgate Street |2,750,000 |2,291,638 |1.64 |60
15 Newgate Street |2,594,885 |2,162,376 |1.64 |45
17-29 Woolgate House |2,667,616 |2,222,985 |1.64 |65
Unilever House |1,765,000 |1,470,805 |1.64 |40
Midland Montague House |1,800,000 |1,499,972 |1.64 |50
|------- |-------
|27,274,152|22,728,120
These figures reflect the rateable values of the buildings as shown in the valuation list as at 24 July 1989.
Taxation
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each financial year since 1978-79 the
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amount of tax raised by (i) personal income taxes, (ii) national insurance contributions, (iii) capital taxes, (iv) corporate taxes, (v) indirect taxes and (vi) rates ; and if he will give a forecast for the current financial year on a full-year basis.Mr. Norman Lamont : The latest available data, using national income and expenditure account definitions, are :
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£ billion |Income Tax<2> |Corporation Tax<3>, PRT |Central Government |Capital taxes on persons|Local authority rates<5>|National Insurance |Total taxes and NICs
|and oil royalties<4> |Expenditure Taxes |Contributions<6>
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1978-79 |19.1 |4.5 |18.2 |0.7 |5.8 |10.2 |58.6
1979-80 |21.1 |6.8 |25.2 |0.9 |6.8 |12.0 |72.7
1980-81 |24.9 |8.1 |28.8 |1.0 |8.7 |14.4 |86.0
1981-82 |29.2 |11.2 |33.6 |1.0 |10.7 |16.5 |102.2
1982-83 |30.5 |13.1 |35.0 |1.2 |12.1 |18.7 |110.6
1983-84 |31.7 |14.2 |38.0 |1.3 |12.3 |21.3 |118.8
1984-85 |33.3 |17.9 |40.6 |1.5 |13.0 |22.7 |129.1
1985-86 |35.8 |19.2 |44.0 |1.8 |13.9 |24.7 |139.4
1986-87 |38.4 |15.7 |48.5 |2.1 |15.7 |26.6 |147.0
1987-88 |41.6 |19.2 |52.5 |2.5 |17.0 |29.1 |161.8
1988-89 |43.8 |20.7 |57.1 |3.4 |18.9 |32.5 |176.3
<1>FSBR Forecast.
<2>Includes a small amount of income tax paid by companies.
<3>Includes corporation tax on gains which is classified as a tax on capital in the national accounts.
<4>Includes IBA levy.
<5>Includes business rates.
<6>Includes employers and employees NICs.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer if, further to his reply dated 10 April, Official Report, column 348, concerning the number of tax units and tax liability by range of total income, he will publish the underlying assumption concerning the increase in incomes together with his present estimate of the increase in average and median earnings in 1989-90 compared to 1988-89 and 1987-88 for manual and non-manual workers respectively.
Mr. Lilley [holding answer 27 July 1989] : The information given in reply to the hon. Member on 10 April 1989 was based on a projection to 1989-90 levels of the 1986-87 survey of personal incomes. The assumptions used in the projection are consistent with those underlying the economic forecast given in chapter 3 of the 1989-90
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Financial Statement and Budget Report. It is not the practice to publish forecasts of personal incomes and average earnings.Mr. Austin Michell : To ask the Chancellor of the Exchequer what is his estimate of the change in the number of higher-rate taxpayers in the current financial year ; and if he will publish in the Official Report a table showing his estimate of the distribution by range of total income and tax category together with the total tax liability.
Mr. Lilley [holding answer 25 July 1989] : The number of married couples and single people liable to the higher rate of income tax is estimated to be 1,330,000 in 1988-89, and 1,440,000 in 1989-90. The tables show the distribution of those liable to higher rate tax in 1989-90 and their income tax liability by income and tax category. Estimates are based on a projection of the 1986-87 survey of personal incomes and are provisional.
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Total tax liability of Higher Rate Tax Units<1> 1989-90
(£ million)
Range of income |Single |Married couple(wife not|Married couple (both |All<2>
|working) |working)
£ per year
------------------------------------------------------------------------------------------------------------------------------------------------
Under 20,000 |- |- |- |-
20,000-25,000 |30 |0 |0 |10
25,000-30,000 |380 |470 |410 |1,260
30,000-50,000 |970 |2,300 |3,910 |7,180
Over 50,000 |1,240 |3,110 |4,330 |8,680
|--- |--- |--- |---
Total<2> |2,610 |5,880 |8,650 |17,150
<1> Counting a married couple as one and combining the partners' incomes.
<2> Figures may not sum exactly due to rounding.
Total tax liability of Higher Rate Tax Units<1> 1989-90
(£ million)
Range of income |Single |Married couple(wife not|Married couple (both |All<2>
|working) |working)
£ per year
------------------------------------------------------------------------------------------------------------------------------------------------
Under 20,000 |- |- |- |-
20,000-25,000 |30 |0 |0 |10
25,000-30,000 |380 |470 |410 |1,260
30,000-50,000 |970 |2,300 |3,910 |7,180
Over 50,000 |1,240 |3,110 |4,330 |8,680
|--- |--- |--- |---
Total<2> |2,610 |5,880 |8,650 |17,150
<1> Counting a married couple as one and combining the partners' incomes.
<2> Figures may not sum exactly due to rounding.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report tables showing for women above and for those below pensionable age, the estimated number of tax units paying income tax in 1989-90 directly or indirectly and the estimated amount of tax payable in a full year at the marginal rate, dividing the figures to show the amounts by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two -earner married couples ; and if he will include tables showing his estimate of the amount of tax which would be
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payable by such tax units in 1989-90 on the basis of separate taxation for husbands and wives as proposed for 1990.Mr. Lilley [holding answer 25 July 1989] : Estimates for single women are given in the tables. They are based on a projection of the 1986-87 survey of personal incomes and are provisional.
Under the present tax system a married women's income is treated as her husband's and taxed as though it belonged to him. The estimates requested for the tax liability on the income of married women under the present tax system and under independent taxation could be produced only at disproportionate cost.
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Number of single females paying income tax and tax liability by range of total income, 1989-90
Aged 65 and over Aged under 65
Tax liability Tax liability
Total income (lower |Number |total |of higher rate taxpayers|Number |total |of higher rate taxpayers
limit)
£ per annum |('000) |(£ million) |£ million |('000) |(£ million) |(£ million)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2,000 |- |- |- |70 |<2> |-
3,000 |90 |10 |- |370 |70 |-
4,000 |170 |40 |- |380 |150 |-
5,000 |160 |80 |- |440 |270 |-
6,000 |120 |90 |- |510 |430 |-
7,000 |70 |60 |- |470 |450 |-
8,000 |60 |70 |- |370 |430 |-
9,000 |30 |50 |- |210 |280 |-
10,000 |50 |90 |- |340 |610 |-
12,000 |50 |130 |- |360 |830 |-
15,000 |50 |170 |- |260 |760 |-
20,000 |30 |150 |110 |110 |490 |80
30,000 |10 |140 |140 |20 |220 |220
50,000 |10 |210 |210 |<1>- |110 |110
|--- |--- |--- |--- |--- |---
Total |900 |1,290 |460 |3,910 |5,100 |410
<1>Less than 5,000.
<2>Less than £5 million.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer (1) whether he will publish in the Official Report a table showing for wives with earned income on Inland Revenue records the estimated distribution of the number of such wives in 1989-90 by wife's total income and the couples' joint total income together with the estimated revenue loss from wife's earnings elections and the estimated further loss on the 1990-91 basis of separate taxation of husbands and wives ;
(2) whether he will publish in the Official Report tables showing for those above and for those below pensionable age, the estimated number of tax units paying income tax and their income tax liability as a proportion of their total income in a full year at 1989-90 rates, by range of total income up to a lower limit of £100,000 distinguishing between single persons, one-earner and two-earner married couples, and if he will add figures showing what effect his proposals for the separate taxation of husbands and wives will have on the numbers of tax units and the proportion paid in tax by (a) one-earner and (b) two-earner married couples.
Mr. Lilley [holding answer 25 July 1989] : I shall answer when resources permit.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report tables showing for those above and for those below pensionable age the estimated number of tax units in receipt of more than £200 gross in composite rate interest in 1987-88 and the average amount received, together with his estimates for 1989-90 ; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one-earner and two -earner married couples.
Mr. Lilley : Estimates for the years requested are not available.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report tables showing for those above and for those below pensionable age the estimated number of tax units in receipt of more than £200 gross in lettings and other incomes from property and the average amount received,
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together with his estimates for 1989-90 ; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100, 000 and distinguishing between single persons, one-earner and two-earner married couples.Mr. Lilley : For information in respect of 1985-86 I refer the hon. Member to the answers provided to him in October last year-- Official Report, 19 October 1988, columns 935-38. Estimates for 1988-89 are not yet available.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report tables showing for one-earner and two-earner married couples under 65 years and married couples over 65 years the number of tax units paying less and the number paying more tax in each income band up to a lower limit of £100,000 at 1989-90 rates of tax in the event of the proposed allowances for separate taxation of husbands and wives being replaced by a transferable allowance of £3,000 for each spouse ; and if he will include figures of the consequential changes in tax yield.
Mr. Lilley : The estimates requested could be provided only at disproportionate cost.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer (1) whether he will publish in the Official Report tables showing for those above and for those below pensionable age, the estimated number of tax units in receipt of more than £200 gross in National Savings accounts and bonds and the average amount received, together with his estimates for 1989-90 ; and if he will divide the figures to show the amounts for those above and those below pensionable age by range of total income up to a lower limit of £100,000 and distinguishing between single persons, one -earner and two-earner married couples ; (2) whether he will publish in the Official Report a table showing for direct tax allowances and reliefs listed in table 6.5 of Cm. 288-I, "The Government's Expenditure Plans", his estimate of the cost in a full year at current rates of incomes and tax for items which will cost the Exchequer £10 million or more.
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Mr. Lilley : The information requested could be provided only at disproportionate cost.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report his estimate of the cost to the Exchequer of an increase of £100 in each of the allowances and reliefs for income tax at 1989-90 income and tax levels ; and if he will provide corresponding figures on the basis of the 1990-91 regime for the independent taxation of husbands and wives.
Mr. Lilley : I refer the hon. Member to table 4.5 of the Autumn Statement 1988.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer (1) whether he will publish in the Official Report tables showing by range of total income up to a lower limit of £100,000, for those above and those below pensionable age and distinguishing between single persons, one- earner and two-earner married couples, the estimated saving to the Exchequer of abolishing all allowances and reliefs other than the basic single and married allowances ; and if he will provide similar tables on the 1990 basis of separate taxation of husbands and wives ;
(2) whether he will publish in the Official Report a table showing the estimated number and direct revenue cost of wife's earnings elections in a full year by range of incomes at 1989-90 income and tax levels, together with tables for (i) husbands and (ii) wives showing (a) the numbers separately assessed by range of total income of the relevant spouse and (b) the aggregate total income of each spouse and the aggregate investment income of each spouse ; and if he will add a table showing the additional direct revenue cost on the basis of the 1990-91 proposals for the separate taxation of husbands and wives ;
(3) whether he will publish in the Official Report a table showing for those above and those below age 65 years the estimated number of tax units and their tax liability in the
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current financial year in each range of total income up to a lower limit of £100,000 divided into single persons and one-earner and two-earner married couples together ; and if he will include the number of females within each category and their tax liability ; (4) whether he will publish in the Official Report a table showing by range of income and tax status an estimate of the saving to the Exchequer in a full year from abolishing, respectively, the upper earnings limit for national insurance contributions and higher rate relief on mortgage interest ;(5) whether he will publish in the Official Report his estimate of the yield from an increase of one penny in the standard rate of tax and in the employees' and employers' national insurance contribution, respectively, in 1989-90 ; and if he will divide the tax figure to show the yield from earned and unearned income.
Mr. Lilley : I shall answer when resources permit.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for (a) two-earner families with a wife's earnings election and (b) other higher-rate taxpayers by tax category, his estimate of the number and distribution of incomes, together with the average unearned income and average amount of mortgage interest relief in each income band in each category in the current financial year ; and if he will add a table showing the gains and losses to the Exchequer from the application of separate taxation of husbands and wives as proposed for 1990.
Mr. Lilley : Provisional estimates for 1989-90 based on a projection of the 1986-87 survey of personal incomes are given in the table. Estimates of the effects of the introduction of independent taxation in 1990-91 were given in the Inland Revenue press release on independent taxation issued on 15 March 1988.
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Higher rate taxpayers-Single people 1989-90
Total Income (loNumber With investment income With mortgage interest
limit) relief
|Number |Average Amount|Number |Average Amount
£ p.a. |000s |000s |£ p.a. |000s |£ p.a.
---------------------------------------------------------------------------------------------------------
20,000 |5 |5 |13,800 |- |900
25,000 |62 |52 |10,100 |32 |2,400
30,000 |56 |51 |7,900 |39 |3,300
35,000 |23 |20 |11,200 |15 |3,400
40,000 |29 |25 |12,000 |22 |3,600
50,000 |44 |42 |37,000 |22 |3,600
All |219 |194 |15,700 |130 |3,200
Higher rate taxpayers-Single people 1989-90
Total Income (loNumber With investment income With mortgage interest
limit) relief
|Number |Average Amount|Number |Average Amount
£ p.a. |000s |000s |£ p.a. |000s |£ p.a.
---------------------------------------------------------------------------------------------------------
20,000 |5 |5 |13,800 |- |900
25,000 |62 |52 |10,100 |32 |2,400
30,000 |56 |51 |7,900 |39 |3,300
35,000 |23 |20 |11,200 |15 |3,400
40,000 |29 |25 |12,000 |22 |3,600
50,000 |44 |42 |37,000 |22 |3,600
All |219 |194 |15,700 |130 |3,200
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Higher rate taxpayers-Married couples without wife's earnings 1989-90
Total Income (loNumber With investment income With mortgage interest
limit) relief
|Number |Average Amount|Number |Average Amount
£ p.a. |000s |000s |£ p.a. |000s |£ p.a.
---------------------------------------------------------------------------------------------------------
20,000 |- |- |- |- |-
25,000 |80 |71 |4,400 |25 |1,700
30,000 |101 |93 |3,700 |65 |3,000
35,000 |70 |66 |3,800 |50 |3,200
40,000 |85 |79 |6,300 |57 |3,100
50,000 |116 |111 |17,100 |75 |3,100
All |452 |420 |7,900 |271 |3,000
Higher rate taxpayers-Married couples without wife's earnings 1989-90
Total Income (loNumber With investment income With mortgage interest
limit) relief
|Number |Average Amount|Number |Average Amount
£ p.a. |000s |000s |£ p.a. |000s |£ p.a.
---------------------------------------------------------------------------------------------------------
20,000 |- |- |- |- |-
25,000 |80 |71 |4,400 |25 |1,700
30,000 |101 |93 |3,700 |65 |3,000
35,000 |70 |66 |3,800 |50 |3,200
40,000 |85 |79 |6,300 |57 |3,100
50,000 |116 |111 |17,100 |75 |3,100
All |452 |420 |7,900 |271 |3,000
Treasury Revenues
Mr. Canavan : To ask the Chancellor of the Exchequer what has been the total income to the Treasury since May 1979 from (a) North sea oil revenues and (b) privatisation of publicly owned assets.
Mr. Norman Lamont : The figures requested are given in the table below :
£ billion
|North Sea Oil Revenues|Privatisation proceeds
--------------------------------------------------------------------------------------------
1979-80 |2.3 |0.4
1980-81 |3.7 |0.4
1981-82 |6.5 |0.5
1982-83 |7.8 |0.5
1983-84 |8.8 |1.1
1984-85 |12.0 |2.2
1985-86 |11.3 |2.7
1986-87 |4.8 |4.4
1987-88 |4.7 |5.1
1988-89 |3.2 |7.0
CBI
Mr. Campbell-Savours : To ask the Chancellor of the Exchequer when he last met the chairman of the Confederation of British Industry to discuss management of the economy.
Mr. Norman Lamont : My right hon Friend the Chancellor of the Exchequer meets representatives of the CBI from time to time, and a wide range of subjects is discussed.
Manufacturing Investment
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what is his estimate of gross investment, including leasing, in plant and machinery in manufacturing industry in 1988 less capital consumption in terms of 1985 prices ; and if he will provide comparable figures for 1964, 1969 and 1974 and 1979 in terms of 1985 prices.
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Mr. Norman Lamont : Estimates of investment net of capital consumption by manufacturing industry in plant and machinery are not of publishable quality.
Manufactures
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what part of the decline between 1977 and 1988 in the United Kingdom balance of trade in manufactures less erratics was due to overheating of the economy and what part to the increase in relative export prices for manufactures and in the terms of trade for finished manufactures between 1976 and 1987; what was the percentage increase in each case; and if he will publish in the Official Report a table showing, on the basis of information in the Treasury model of the economy, the reduction in the rate of economic growth and alternatively in the trade-weighted nominal exchange rate in 1990 and 1991 required to enable the deficit to be eliminated by the end of 1991, all other assumptions remaining unchanged.
Mr. Norman Lamont : The information could be obtained only at disproportionate cost.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what part of the improvement in the balance of trade in finished manufactures between the United Kingdom and the United States of America between 1980 and 1987 and the deterioration between 1977 and 1980 and since 1987 is due to overheating in one economy or the other and what part to the movement in relative prices of importable and exportable goods; and if he will publish in the Official Report a table showing for each year since 1970 the United Kingdom balance of trade with the United States of America (i) total trade less oil, (ii) manufactures less erratics and (iii) finished manufactures less erratics together with the ratio of the relative export prices for manufactures based on 1980 = 100.
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Mr. Norman Lamont : The information requested, with the exception of the data on trade with the United States of America, could be obtained only at disproportionate cost. I shall answer when resources permit.
Industrial Economies
Mr. Cohen : To ask the Chancellor of the Exchequer which countries have overtaken the United Kingdom in the Organisation for Economic Co- operation and Development's list of the leading industrial economies in the last three years.
Mr. Ryder : From June 1989, Italy has been placed before the United Kingdom in OECD publications where the leading industrial economies are given in order of size. The OECD ordering is based on GDP in an earlier year converted at market exchange rates. On the basis of GDP comparisons using OECD estimates of purchasing power parities, the United Kingdom comes before Italy in both 1987 and 1988.
Oil Prices
Mr. Salmond : To ask the Chancellor of the Exchequer if he will set out in detail the assumptions he made about the oil price in preparing the 1989 Budget.
Mr. Norman Lamont : The forecast published in the Financial Statement and Budget Report 1989-90 was prepared on the assumption that the North sea oil price would remain close to recent levels prevailing at that time.
Mr. Salmond : To ask the Chancellor of the Exchequer whether movements in oil prices since the 1989 Budget have caused any revision of the Budget forecasts and assumptions.
Mr. Norman Lamont : As usual, the oil price assumptions will be reconsidered when my right hon. Friend prepares his next forecast to be published as part of the Autumn Statement.
Common Agricultural Policy
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will bring up to date the estimate published in "The Challenge to Agriculture," published in February 1988, of the cost of the common agricultural policy to the average family ; how the original figure was arrived at ; what changes have occurred since ; and for what reason.
Mr. Ryder : The estimate in "The Challenge to Agriculture" of February 1988 was quoted from "The Political Economy of International Agricultural Reform," Department of Primary Industry, Australia, 1986. It was intended as an example of one particular attempt to quantify the cost of agriculture support policies to European families. The estimate referred to the cost to each non-farm family in Europe of transfers by consumers and taxpayers to EC farmers, and included domestic agriculture programmes of member states as well as the CAP. A new estimate, based on changes that have occurred since, would involve taking account of agricultural policies in each member state and could be provided only at disproportionate cost.
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Financial Statistics
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing (a) the increase in cash terms in sterling M0 and sterling M3 (i) from May 1979 to the latest available date and (ii) between January 1974 and May 1979, (b) the annual rate of inflation on these three dates, (c) the increase in the amount lent by the banks to, respectively, the public sector and the private sector, (d) the increase in outstanding mortgages on residential property, (e) the increase in producer and retail prices and (f) the average annual rate of increase in each of the foregoing cases.
Mr. Ryder : Data for M0, M3 and bank lending are published in Financial Statistics ; the Bank of England Quarterly Bulletin ; and are available from the Bank of England on request.
Data on mortgages on residential property are published in Financial Statistics.
Data on prices are published in Economic Trends.
Income Tax
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer, what is the reduction in the United Kingdom contribution to the EEC budget and what was the forecast.
Mr. Ryder : I refer the hon. Member to chapter 3 of "The Government's Expenditure Plans 1989-90 to 1991-92" (Cm 603).
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing his estimate of the number and amount of incomes subject to tax in the current financial year above a total of £100,000 by steps of £100,000 to the nearest 100 persons in each case and for 1978-79, the amount of tax collected in each case in 1978-79 and his estimate of the amount of tax payable in respect of the current financial year.
Mr. Lilley [holding answer 27 July 1989] : The available data do not permit the provision of information in the amount of detail requested. To the nearest thousand incomes (those of husband and wife being counted as one income), there were 1,000 incomes of £100,000 and above in 1978-79, upon which the liability to income tax was about £120 million. In 1986-87, the latest year for which information is available, there were 23,000 incomes of £100,000 but under £200, 000, with tax liability of £1,400 million, and 5,000 incomes of £200, 000 and above with tax liability of £850 million.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer (1) what is his estimate of the earned and unearned income of the top 1 per cent. of tax payers in the current financial year and of the amount they are expected to pay in national insurance contributions ;
(2) whether he will publish in the Official Report a table showing the number of tax units and amount of earned income in each tax band by range of total income and tax status for those (a) above and (b) below pensionable age ;
(3) whether he will publish in the Official Report a table showing the number of tax units in each tax band by range of total income and tax status for those below pensionable age, his estimate of the cost to the Revenue of the substitution of a single allowance of £3,000 and a married
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allowance of £6,000 for the present personal income tax allowances, the married woman's earnings allowance and the wife's earnings election together with an increase in the rate of income tax for from 25 per cent. to 35 per cent. on total incomes between £5,500 and £13, 000 for single persons and £11,000 and £18,500 for married persons ; (4) whether he will publish in the Official Report a table showing for (a) one-earner and (b) two-earner married couples the number of tax units in each tax band by range of total income and tax status for those (i) above and (ii) below pensionable age and his estimate of the yield to the revenue in the current financial year from abolishing wife's earnings election and raising the higher rate of tax to 40 per cent. on incomes of married couples with total incomes between £18,500 and £27,000, 45 per cent. between £27,000 and £37,000, 50 per cent. between £37,000 and £50,000, 55 per cent. between £50,000 and £250,000 and 60 per cent. above £250,000 ; (5) whether he will publish in the Official Report a table showing the number of tax units in each tax band by range of total income and tax status for those (a) above and (b) below pensionable age and his estimate of the yield from making investment income chargeable to national insurance contributions on the same basis as earned income ; and if he will include the number of tax units and total investment income in each case ;(6) whether he will publish in the Official Report a table showing for single persons the number of tax units in each tax band by the range of total income and tax status for those above and below pensionable age, his estimate of the yield to the Revenue in the current financial year from an increase in higher rate tax for single persons to 40 per cent. on total incomes between £13,000 and £19,000, 45 per cent. between £19,000 and £26,000, 50 per cent. between £26, 000 and £34,000, 55 per cent. between £34,000 and £125,000 and 60 per cent. above £125,000.
Column 1128
Mr. Lilley : I shall answer when resources permit.
Personal Taxation
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer, further to his reply of 14 November 1988, Official Report, column 517, concerning annex C of "Inland Revenue Statistics", whether he will publish in the Official Report a table showing for each year since 1959 the tax plus national insurance contribution threshold and break-even points for a married man on (i) average manual earnings and (ii) average earnings of all occupations ; and if he will include (a) an estimate for 1989-90 based on the comparable earnings figures for April 1989 and (b) figures for the lowest decile of manual earnings in 1978-79 and 1988-89.
Mr. Lilley : Available information is given in the tables. The "tax and national insurance contribution threshold" is the level of earnings above which the married man first pays income tax or class 1 national insurance contributions.
The "break-even point" is the value of earnings at which the amount of income tax and national insurance contributions paid is equal to the money received through child benefit or family allowance. It therefore gives the level of earnings above which the family pays more income tax plus national insurance contributions than it obtains in benefits for children.
Estimates in table 1 for 1989-90 are based on the projected figures for average manual earnings and average earnings of all occupations, assuming 7.5 per cent. growth on 1988-89.
Corresponding figures for the "tax and national insurance contribution threshold" and the "break-even point" as a percentage of the lowest decile of male manual earnings in April 1978 and April 1988 are given in table 2.
Column 1127
Tax and/or NIC<1> thresholds for married man with 2 children under 11
|Threshold at current |Threshold at 1988-89 |Threshold as percentage|Threshold as percentage|Break-even point at |Break-even point at |Break-even point as |Break-even point as
|prices |prices |of average manual |of average earnings<3> |current prices |1988-89 prices |percentage of average |percentage of average
|earnings<2> |for all occupations |manual earnings<2> |earnings<3> for all
|occupations
Tax year |£ |Index 1988-89=100 |Per cent. |Per cent. |£ |Index 1988-89=100 |Per cent. |Per cent.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1958-59<5><7> |0 |0 |0 |0 |0 |0 |0 |0
1968-69<6><7> |0 |0 |0 |0 |0 |0 |0 |0
1978-79 |910 |91.0 |20.3 |18.9 |2,225 |86.9 |49.8 |46.1
1979-80 |1,014 |87.5 |19.3 |17.8 |2,734 |92.1 |52.0 |48.1
1980-81 |1,196 |88.7 |19.7 |17.5 |2,959 |85.7 |48.8 |43.3
1981-82 |1,404 |93.4 |21.0 |18.5 |3,063 |79.6 |45.8 |40.4
1982-83 |1,534 |95.3 |21.4 |18.7 |3,361 |81.6 |46.8 |41.1
1983-84 |1,690 |100.4 |21.9 |19.0 |3,774 |87.5 |48.8 |42.4
1984-85 |1,768 |99.9 |21.3 |18.4 |4,195 |92.6 |50.5 |43.6
1985-86 |1,846 |98.5 |20.8 |17.9 |4,679 |97.5 |52.8 |45.3
1986-87 |1,976 |102.2 |21.0 |17.8 |4,939 |99.7 |52.4 |44.4
1987-88 |2,028 |100.9 |20.0 |16.7 |5,199 |101.0 |51.3 |42.8
1988-89 |2,132 |100.0 |19.4 |16.0 |5,459 |100.0 |<8>49.6 |41.0
1989-90<4> |2,236 |99.0 |18.9 |15.6 |<9>5,836 |<9>100.9 |<9>49.3 |<9>40.8
<1>Class 1 employees' national insurance contributions.
<2>Full time males aged over 21 working a full week.
<3>Full time males paid at adult rates working a full week.
<4>Provisional.
<5>In 1958-59 employees paid a flat rate on all their weekly earnings.
<6>In 1968-69 employees paid a flat rate on all their weekly earnings and a graduated element on earnings above £9 per week.
<7>The break-even point is zero because National Insurance Contributions were charged at a flat-rate, regardless of weekly earnings, which was in excess of the family allowance for two children.
<8>Provisional.
<9>Using average NIC rates for 1989-90 derived from pre-and post-October 1989 regimes.
Column 1129
Lowest decile of male manual earnings in 1978-79 and 1988-89
April New Earnings Survey |Lowest decile of male |Threshold as percentage |Break-even point as
|manual earnings £ per |of lowest decile of male |percentage of lowest
|week |manual earnings |decile of male manual
|earnings
----------------------------------------------------------------------------------------------------------------------------------
1978 |52.8 |33.1 |81.0
1988 |127.7 |32.1 |82.2
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the estimated direct revenue cost in income tax at the standard and higher rates in the full year at current rates of (a) mortgage interest relief, (b) life assurance pensions relief, (c) retirement annuity premium relief and (d) investment income relief of occupational pension funds.
Mr. Lilley : Available estimates for 1988-89 are given below.
Estimated direct revenue cost 1988-89
|£ million
------------------------------------------------------------------------
Mortgage interest relief |5,500
-of which relief at the excess over the basic rate |340
Life assurance premium relief |470
Employees' contributions to occupational pension
schemes allowed as a deduction for income tax
purposes |1,700
Employees' contributions to occupational pension
schemes not treated as taxable benefits in kind
in the hands of the employees |2,600
Retirement annuity premium relief |450
-of which relief at the excess over the basic rate |100
Relief on investment income of occupational
pension funds (assuming relief at the basic rate) |4,400
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what would be the saving to the revenue in the current financial year if (a) mortgage interest relief and (b) other non-personal allowances were progressively clawed back at the rate of 50 per cent. of income in excess of the higher rate threshold.
Mr. Lilley : It is estimated that the direct revenue yield in a full year at 1989-90 levels of income of withdrawing (a) mortgage interest relief and (b) other main reliefs from higher rate taxpayers at the rate of 50 per cent. on income in excess of the higher rate threshold is :
|£ million
-----------------------------------------------------------------------
(a) Mortgage interest relief |700
(b) Retirement annuity relief (including payments
by employees), relief for Class IV National
Insurance contributions, employees'
superannuation contributions, charitable
covenants and business expansion scheme relief |650
Estimates are based on a projection of the 1986-87 survey of personal incomes and are provisional ; they assume that relief is withdrawn against liability to the higher rate of tax of 40 per cent. not just against liability to the excess of the higher rate over the basic rate.
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what would be the saving to the revenue in the current financial year if personal allowances were clawed back for the purpose of higher tax at the rate of 50 per cent. on income in excess of the higher rate threshold.
Column 1130
Mr. Lilley : I regret that the information requested could be provided only at disproportionate cost.
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