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Column 548
Arms
Mr. Cousins : To ask the Secretary of State for Defence what were the brokerage fees accruing from the Ministry of Defence's management of the Al Hamamah Saudi arms deal to the end of December.
Trident
Mr. Campbell-Savours : To ask the Secretary of State for Defence if he will make a statement about the latest estimated cost of Trident.
Mr. Alan Clark : The current estimate for Trident is £9089 million at 1988-89 prices and an exchange rate of £1 = $1.76. It is intended to announce a revised estimate shortly.
Nuclear Test Veterans
Mr. Vaz : To ask the Secretary of State for Defence how many British nuclear test veterans have written to the Government asking for compensation.
Mr. Archie Hamilton : The Ministry of Defence has received about 120 claims from individuals seeking compensation for damage to health allegedly due to their participation in the United Kingdom's nuclear weapon test programme. In addition, a number of representations have been made by test veterans' organisations concerning compensation for their members.
Berlin Saddle Club
Mr. Marlow : To ask the Secretary of State for Defence (1) how many people in Berlin take advantage of the facilities provided for the Saddle Club ; what proportion are (a) officers and officers' families, (b) other ranks and other ranks' families and (c) civilians ;
(2) what charges are made for the use of the Berlin Saddle Club facilities ;
(3) what is the cost to public funds, including military personnel of running the Berlin Saddle Club.
Mr. Archie Hamilton : My noble Friend Lord Arran will write to my hon. Friend.
Residences
Mr. Tony Banks : To ask the Secretary of State for Defence how many residences are currently owned by his Department in London ; who occupies them and on what conditions ; and how many are currently empty.
Mr. Archie Hamilton : The Ministry of Defence owns 19 properties classed as official service residences within the Greater London area. They are normally occupied by entitled senior service officers filling specific posts ; those officers are required to pay the appropriate accommodation charge. Two are currently vacant pending the completion of maintenance work.
Panama
Mr. Tony Banks : To ask the Secretary of State for Defence if any military assistance or co-operation has been given or offered to the United States authorities in respect of the invasion of Panama.
Column 549
Mr. Archie Hamilton : No.Mr. Tony Banks : To ask the Secretary of State for Defence why British troops were present when the United States of America invaded Panama ; how many were there ; from what branch of the armed services they came ; and if he will make a statement.
Mr. Archie Hamilton : Apart from the resident defence attache and his staff at the British embassy, no British military personnel were in Panama at the time.
LORD PRESIDENT OF THE COUNCIL
Parliamentary Papers
Mr. Allen : To ask the Lord President of the Council what is (a) the annual cost and (b) the nominal average cost per Member per week of the production of (i) the Order Paper plus blues, (ii) the daily Official Report and (iii) the Vote bundle.
Sir Geoffrey Howe : The information requested is as follows :
|£
------------------------------------------------------
(a) Annual cost of production of:
(i) Order Paper plus blues |2,727,439
(ii) The Daily Official Report |2,745,393
(iii) The Vote Bundle |4,714,676
(b) The nominal average cost per Member, per week of t
tion of:
(i) The Order Paper plus blues |19.94
(ii) The Daily Official Report |17.01
(iii) The Vote Bundle |34.47
Notes:
1. Production costs relate to the 1988-89
parliamentary Session.
2. Publishing and distribution overheads are excluded
(they are not production costs).
3. Blues' includes Notices of Questions and Notices
of Motions.
4. Assumes one copy of each publication daily per
Member.
Secretarial Allowances
Mr. Allen : To ask the Lord President of the Council how many hon. Members employ from their secretarial allowance (a) none, (b) one, (c) two, (d) three, (e) four, (f) five and (g) six or more employees.
Sir Geoffrey Howe : As at 31 December 1989, the number of staff directly employed by Members and paid by the Fees Office out of the office costs allowance are as follows :
----------------------------
(a) |- |24
(b) |193 |193
(c) |538 |269
(d) |372 |124
(e) |104 |26
(f) |40 |8
(g) |26 |4
|------|------
Totals |1,273 |648
Notes:
1. The numbers of staff
shown relates to persons
directly employed by
Members. They do not
include persons who are fee
earning, agency workers, or
staff provided under an
arrangement with a firm or
business organisation.
2. A total of 648 Members
are shown-this reflects the
position as at 31 December
1989 (ie excluding the late
Mr. J. Heddle and Mr. G.
Adams who has not taken his
seat).
Members' Employees
Mr. Rooker : To ask the Lord President of the Council what are the latest figures for the numbers of employees of hon. Members paid via the Fees Office, who are covered by contracts of employment ; and whether he intends to take steps to increase the numbers.
Sir Geoffrey Howe : As at 31 December 1989, 1,273 staff employees of Members were paid via the Fees Office. Copies of the main terms and conditions of employment in respect of 781 staff have been furnished to the Fees Office at that date, leaving 492 staff--some of whom have been recently appointed--outstanding. The Fees Office continues to provide advice and guidance to individual Members seeking clarification on specific points of contractual detail, and I am satisfied that all reasonable steps are being taken to encourage adherence to the terms of the governing resolution.
OVERSEAS DEVELOPMENT
Ivory Poaching
32. Mr. Tony Banks : To ask the Secretary of State for Foreign and Commonwealth Affairs what assistance is being offered to African countries willing to destroy all ivory stocks seized from poachers.
Mrs. Chalker : We do not offer assistance to African countries in response to their willingness to destroy ivory stocks seized from poachers, but we are committed to projects specifically to assist wildlife management and to help to deter and eliminate poaching.
Hungary
33. Mr. Favell : To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a further statement on aid to Hungary.
Mrs. Chalker : Planning for the programme of £25 million over five years previously announced is under way. Our embassy in Budapest has been inviting appropriate contacts to submit ideas for possible financing from the fund. The programme commences substantively in April.
Pakistan
34. Mr. Moss : To ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to review United Kingdom aid to Pakistan.
Mrs. Chalker : When I visited Pakistan last month, I was able to review our aid programme with its Prime Minister and her Ministers. I signed new aid agreements worth £35 million, on behalf of ODA and CDC, for the Karachi water and sanitation project and the Sukkur barrage project.
Bangladesh
35. Dr. Goodson-Wickes : To ask the Secretary of State for Foreign and Commonwealth Affairs whether he will have discussions with the Government of Bangladesh on development issues.
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Mrs. Chalker : Yes. The next meeting in our annual sequence of bilateral aid talks will be held in London later this month. I am also planning to pay my first visit to Bangladesh in February.Rain Forests
36. Mr. Dalyell : To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the further implementation of the agreement on rain forests negotiated by the right hon. Member for Bath (Mr. Patten) with the Brazilian Government.
Mrs. Chalker : British experts visited Brazil on several occasions between August and December and identified a number of well-defined possibilities for collaborative projects in tropical rain forests and urban environment. Detailed proposals are now being prepared by the Brazilian authorities for our consideration. I wrote to the hon. Member on 3 November and again on 20 December giving details of progress on the more advanced projects.
Fiji
Mr. Vaz : To ask the Secretary of State for Foreign and Commonwealth Affairs if he will list the levels of grant aid in pounds sterling given to Fiji for each year since 1980 and for each month during 1989 ; and if he will make a statement.
Mrs. Chalker : The information requested is as follows :
Beneficiaries<1> of higher rate relief on mortgage interest by range of total income: 1989-90
Range of total income |Number of tax |Gross amount of |Cost of excess |Average basic |Average excess |Number of non-
|units |interest qualify- |over basic rate |rate relief |over basic rate |aged tax units
|ing for relief |relief |relief
(£) |(Thousand) |(£ million) |(£ million) |(£) |(£) |(Thousand)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Singles
20,001-25,000 |20 |55 |<2>- |760 |50 |20
25,001-30,000 |80 |265 |25 |830 |340 |80
30,001-40,000 |60 |215 |30 |910 |550 |55
40,001-50,000 |25 |100 |15 |900 |540 |25
Over 50,000 |25 |90 |15 |960 |580 |20
|----- |----- |----- |----- |----- |-----
Total |210 |725 |90 |870 |420 |200
One-earner couples
20,001-25,000 |0 |0 |0 |0 |0 |0
25,001-30,000 |105 |320 |25 |760 |210 |105
30,001-40,000 |110 |355 |50 |800 |480 |110
40,001-50,000 |50 |155 |25 |790 |470 |45
Over 50,000 |55 |180 |25 |820 |490 |50
|----- |----- |----- |----- |----- |-----
Total |320 |1,010 |125 |790 |390 |310
Two-earner couples
20,001-25,000 |0 |0 |0 |0 |0 |0
25,001-30,000 |80 |240 |10 |760 |120 |80
30,001-40,000 |325 |1,015 |105 |780 |320 |325
40,001-50,000 |110 |345 |45 |800 |430 |110
Over 50,000 |130 |425 |65 |830 |490 |130
|----- |----- |----- |----- |----- |-----
Total |645 |2,020 |225 |790 |350 |645
All
20,001-25,000 |20 |55 |<2>- |760 |50 |20
25,001-30,000 |265 |825 |60 |780 |220 |265
30,001-40,000 |495 |1,585 |190 |800 |380 |490
40,001-50,000 |185 |600 |85 |810 |460 |180
Over 50,000 |210 |695 |105 |840 |500 |200
|----- |----- |----- |----- |----- |-----
Total |1,175 |3,760 |440 |800 |370 |1,155
<1> Includes about 250,000 tax units who are kept out of higher rate tax by this relief.
<2> Less than £2.5 million.
Beneficiaries<1> of higher rate relief on mortgage interest by range of total income: 1989-90
Range of total income |Number of tax |Gross amount of |Cost of excess |Average basic |Average excess |Number of non-
|units |interest qualify- |over basic rate |rate relief |over basic rate |aged tax units
|ing for relief |relief |relief
(£) |(Thousand) |(£ million) |(£ million) |(£) |(£) |(Thousand)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Singles
20,001-25,000 |20 |55 |<2>- |760 |50 |20
25,001-30,000 |80 |265 |25 |830 |340 |80
30,001-40,000 |60 |215 |30 |910 |550 |55
40,001-50,000 |25 |100 |15 |900 |540 |25
Over 50,000 |25 |90 |15 |960 |580 |20
|----- |----- |----- |----- |----- |-----
Total |210 |725 |90 |870 |420 |200
One-earner couples
20,001-25,000 |0 |0 |0 |0 |0 |0
25,001-30,000 |105 |320 |25 |760 |210 |105
30,001-40,000 |110 |355 |50 |800 |480 |110
40,001-50,000 |50 |155 |25 |790 |470 |45
Over 50,000 |55 |180 |25 |820 |490 |50
|----- |----- |----- |----- |----- |-----
Total |320 |1,010 |125 |790 |390 |310
Two-earner couples
20,001-25,000 |0 |0 |0 |0 |0 |0
25,001-30,000 |80 |240 |10 |760 |120 |80
30,001-40,000 |325 |1,015 |105 |780 |320 |325
40,001-50,000 |110 |345 |45 |800 |430 |110
Over 50,000 |130 |425 |65 |830 |490 |130
|----- |----- |----- |----- |----- |-----
Total |645 |2,020 |225 |790 |350 |645
All
20,001-25,000 |20 |55 |<2>- |760 |50 |20
25,001-30,000 |265 |825 |60 |780 |220 |265
30,001-40,000 |495 |1,585 |190 |800 |380 |490
40,001-50,000 |185 |600 |85 |810 |460 |180
Over 50,000 |210 |695 |105 |840 |500 |200
|----- |----- |----- |----- |----- |-----
Total |1,175 |3,760 |440 |800 |370 |1,155
<1> Includes about 250,000 tax units who are kept out of higher rate tax by this relief.
<2> Less than £2.5 million.
Provisional figures for 1989, not completely comparable with the above are £1,384,000, of which £32,000 was grant financial aid and £1,352,000 was technical co-operation.
All these figures exclude expenditure by the Commonwealth Development Corporation.
NATIONAL FINANCE
Mortgage Tax Relief
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish a table on the same general basis as that provided in his written reply to the hon. Member for Great Grimsby on 29 July 1988, Official Report, columns 728-30, on the cost to the Exchequer of mortgage interest relief for higher-rate taxpayers in a full year at the current basic rate of mortgage interest ; and if he will add a forecast for 1990-91 on the same basis, allowing for separate taxation of husbands and wives.
Mr. Lilley : Estimates of excess over basic rate relief on mortgage interest in 1989-90, based on a projection of the 1987-88 survey of personal incomes, are given in the table. Estimates for 1990-91 are not available.
Column 551
Table file CW900108.067 not available
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish a table showing by range of income the numbers of single persons and married couples (a) with and (b) without wife's earned income below and above age 65 years in receipt of mortgage interest relief and the average relief per mortgagee in each case in a full year at the current basic
Column 554
rate of mortgage interest ; and if he will add a forecast for 1990, allowing for separate taxation of husbands and wives.Mr. Lilley : Provisional estimates for 1989-90 are given in the table. They are based on projections of the 1987-88 survey of personal incomes. Estimates for 1990-91 are not available.
Column 553
Single people and married couples receiving mortgage interest relief by range of total income 1989-90
Non-aged mortgagors Aged mortgagors
Range of total income |Number with |Average tax cost of |Number with |Average tax cost of
|mortgage interest |relief per mortgagor |mortgage interest |relief per mortgagor
|Thousands |£ |Thousands |£
----------------------------------------------------------------------------------------------------------------------------------------------------
Singles
Up to £5,000 |240 |440 |20 |280
£5,001 to £10,000 |770 |610 |20 |350
£10,001 to £15,000 |650 |740 |10 |570
£15,001 to £20,000 |400 |860 |<1>- |530
£20,001 to £30,000 |290 |940 |<1>- |410
Over £30,000 |110 |1,490 |<1>- |1,050
|------ |------ |------ |------
Total |2,450 |750 |60 |410
Married couples with wife earning
Up to £5,000 |40 |500 |10 |200
£5,001 to £10,000 |210 |550 |10 |500
£10,001 to £15,000 |700 |620 |10 |450
£15,001 to £20,000 |980 |700 |10 |420
£20,001 to £30,000 |1,070 |800 |<1>- |260
Over £30,000 |640 |1,240 |10 |800
|------ |------ |------ |------
Total |3,660 |800 |50 |480
Married couples with wife not earning
Up to £5,000 |120 |470 |20 |390
£5,001 to £10,000 |590 |610 |40 |250
£10,001 to £15,000 |940 |650 |10 |160
£15,001 to £20,000 |620 |760 |10 |220
£20,001 to £30,000 |490 |820 |10 |320
Over £30,000 |210 |1,460 |10 |970
|------ |------ |------ |------
Total |2,970 |740 |90 |330
<1>Less than 5,000.
Figures may not add due to rounding.
Ministers (Expenses)
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what allowance is made against tax in respect of food and travel expenses incurred by Ministers of the Crown whilst employed on official duties.
Mr. Lilley : Ministers of the Crown, like all officeholders and employees, are entitled to tax relief under the schedule E expenses rules for those travel and subsistence costs that are necessarily incurred travelling in the performance of their duties.
Column 554
Water (VAT)
Sir Trevor Skeet : To ask the Chancellor of the Exchequer when the Government intend to impose a value added tax on water ; and to which description of consumer it will apply.
Mr. Ryder : In order to comply with a judgment of the European Court, the provisions of section 19 of the Finance Act 1989 extend the standard rate of VAT to supplies of water used in connection with certain industrial activities with effect from 1 July 1990. Supplies to domestic consumers will remain zero-rated.
Column 555
Inflation
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what has been the effect on the rate of inflation since 1986 of the increase in the price of assets, including houses ; what was the increase in (a) overhead costs of employers and employees respectively and (b) wage increases granted to employees ; and if he will provide regional as well as national figures.
Mr. Ryder : Increases in mortgage interest payments, including the lagged effect of house prices, contributed two percentage points to the annual rate of RPI inflation in the year to November, compared with half a percentage point in the year to January 1987. There are no official figures available for the overhead costs of employers or employees. Figures for average earnings are published in the Employment Gazette and New Earnings Survey, copies of which are available in the House of Commons Library.
Mrs. Mahon : To ask the Chancellor of the Exchequer what is the current rate of inflation in the United Kingdom and in the Group of Five leading industrial nations.
Mr. Ryder : More comparable inflation rates for members of the five leading industrial countries are given in the following table :
More comparable consumer price inflation rates --------------------------------- United Kingdom<2> |6.1 United States of America |4.4 Japan |2.6 Germany |3.4 France |3.7 <1>Figures for the United Kingdom and France are for November, the United States of America and Germany are for October and for Japan, September. <2>The United Kingdom figure is for RPI excluding mortgage interest payments; figures for other countries exclude estimates of owner occupiers' housing costs as appropriate.
Mr. Thurnham : To ask the Chancellor of the Exchequer what measures he is taking to curb inflation ; and if he will make a statement.
Mr. Ryder : The Government's tight monetary and fiscal policies are working. Demand is slowing and lower inflation will follow.
Exchange Rate
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer what has been the effect on the rate of wage and price inflation since 1986 of the increase since 1987 in the real exchange rate against the deutschmark measured in terms of relative export prices regionally and nationally.
Mr. Ryder : The relationship between wage and price inflation and changes in the bilateral deutschmark-sterling real exchange rate cannot be separated from the effects of exchange-rate movements against third currencies and other influences on wage and price inflation in both countries.
Earnings
Mr. Austin Mitchell : To ask the Chancellor of the Exchequer whether he will publish in the Official Report a table showing the increase in real terms after tax of a
Column 556
married couple with two children and no tax allowances, other than personal allowances, for each of the male employees itemised in the written reply of 13 December from the Department of Employment to the hon. Member for Great Grimsby, Official Report, columns 658-59, showing the increase in gross real earnings between April 1979 and April 1989.Mr. Lilley : Information is given in the table.
Increases<1> in real earnings<2> after income tax<3> and child benefit of a
married man with two children<4>, between April 1979 and April 1989
Point on Earnings |Manufacturing |Percentage increase
Distribution |Non-manufacturing
--------------------------------------------------------------------------------
Manual Males
Lowest decile |6 |7
Lower quartile |11 |11
Median |16 |15
Higher quartile |20 |19
Highest decile |25 |21
Average earnings |17 |16
Non-Manual Males
Lowest decile |20 |17
Lower quartile |26 |26
Median |33 |35
Higher quartile |41 |42
Highest decile |47 |52
Average earnings |39 |41
<1>The increases shown do not relate to the same individuals at the different
dates.
<2>Earnings are those for full-time males on adult rates in Great Britain.
<3>For April 1979, income tax is based on the tax regime in the Finance Act
1979.
<4> Two children, both aged under 11.
Source: New Earnings Survey data and RPI (all items).
Child Care
Mr. Spearing : To ask the Chancellor of the Exchequer if, pursuant to his answer to the hon. Member for Newham, South of 3 November, Official Report, column 361, he will examine the disparity in respect of parental payment for day child care facilities.
Mr. Lilley : I am not aware of such a disparity.
Tax Subsidies
Mr. Hinchliffe : To ask the Chancellor of the Exchequer if he will consider introducing tax subsidies on British Rail season tickets as a means of reducing road congestion and environmental pollution.
Mr. Lilley : I cannot anticipate my right hon. Friend's Budget statement.
Interest Rates
Mr. Alan W. Williams : To ask the Chancellor of the Exchequer if he will make a statement on interest rates.
Mr. Ryder : Bank base rates are 15 per cent.
Mr. Flynn : To ask the Chancellor of the Exchequer what new intitiatives he plans to reduce the level of interest rates.
Mr. Ryder : The Government will not reduce interest rates until that can be safely done without risk to inflation.
Column 557
Gross Domestic Product
Mr. Andrew F. Bennett : To ask the Chancellor of the Exchequer what is the latest figure he has for the percentage that taxation represents of the gross domestic product ; and what was the comparable figure in 1979.
Mr. Ryder : The information is given below.
Taxes as percentage of GDP<1>
|per cent.
------------------------------
1979 |28.3
1988 |30.4
<1> Taxes cover taxes on
income, expenditure (
including local authority
rates) and capital. GDP is
GDP(A) at market prices.
Capital Inflows
Mr. Campbell-Savours : To ask the Chancellor of the Exchequer if he will estimate the value of short-term capital inflows into the United Kingdom in the first three quarters of 1989.
Mr. Norman Lamont : The available information on transactions in the main categories of United Kingdom
Column 558
external assets and liabilities in the first three quarters of 1989 was published on 14 December in the quarterly balance of payments press notice, CSO(89)143, a copy of which is in the Library. It is not considered meaningful to distinguish short-term capital flows.Taxes and Benefits
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will publish in the Official Report up-to-date figures on the same basis as those provided to the hon. Member for Hornchurch (Mr. Squire) in the Official Report, 10 January 1989, columns 633-56.
Mr. Lilley : Figures for 1978-79 to 1988-89 were placed in the Library of the House earlier this year (as noted in Official Report 13 April 1989, column 624 ). Revised estimates for 1988-89, and estimates for 1989-90 were given in reply to the hon. Member for Oldham, West (Mr. Meacher) on 1 December 1989 ( Official Report, col. 464 ). I regret that those estimates for 1988-89 for a married man with two children contained an error. The amended tables are below.
Income tax, NICS and indirect tax paments at multiples of average earnings-1989-90
Multiples of average earnings
|0.5 |0.75 |1 |1.5 |2 |3 |4 |5 |7 |10 |20
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Single
Amounts, £ per week
Income tax |21.61 |39.11 |56.61 |91.61 |142.87 |254.87 |366.87 |478.87 |702.87 |1,038.87 |2,158.87
NICS |11.10 |17.40 |23.70 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74
VAT |- |10.59 |14.22 |22.16 |- |- |- |- |- |- |-
Other indirect |- |15.96 |19.96 |28.72 |- |- |- |- |- |- |-
Domestic rates |- |8.42 |10.25 |14.25
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |32.71 |91.48 |124.74 |184.48 |170.61 |282.61 |394.61 |506.61 |730.61 |1,066.61 |2,186.61
Amounts 1988-89 prices
Income tax |20.10 |36.38 |52.66 |85.22 |132.90 |237.09 |341.27 |445.46 |653.83 |966.39 |2,008.25
NICS |10.33 |16.19 |22.05 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80
VAT |- |9.85 |13.23 |20.61 |- |- |- |- |- |- |-
Other indirect |- |14.85 |18.57 |26.72 |- |- |- |- |- |- |-
Domestic rates |- |7.83 |9.53 |13.26 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |30.43 |85.10 |116.04 |171.61 |158.71 |262.89 |367.08 |471.27 |679.64 |992.20 |2,034.06
Percentage of earnings
Income tax |15.4 |18.6 |20.2 |21.8 |25.5 |30.3 |32.8 |34.2 |35.9 |37.1 |38.6
NICS |7.9 |8.3 |8.5 |6.6 |5.0 |3.3 |2.5 |2.0 |1.4 |1.0 |0.5
VAT |- |5.0 |5.1 |5.3 |- |- |- |- |- |- |-
Other indirect |- |7.6 |7.1 |6.8 |- |- |- |- |- |- |-
Domestic rates |- |4.0 |3.7 |3.4 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |23.4 |43.6 |44.6 |43.9 |30.5 |33.6 |35.2 |36.2 |37.3 |38.1 |39.0
Married, no children
Amounts, £ per week
Income tax |13.97 |31.47 |48.97 |83.97 |130.63 |242.63 |354.63 |466.63 |690.63 |1,026.63 |2,146.63
NICS |11.10 |17.40 |23.70 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74
VAT |- |9.73 |13.69 |22.33 |- |- |- |- |- |- |-
Other indirect |- |17.67 |21.68 |30.42 |- |- |- |- |- |- |-
Domestic rates |- |8.22 |9.55 |12.45 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |25.07 |84.49 |117.59 |176.91 |158.37 |270.37 |382.37 |494.37 |718.37 |1,054.37 |2,174.37
Amounts 1988-89 prices
Income Tax |13.00 |29.27 |45.55 |78.11 |121.52 |225.70 |329.89 |434.07 |642.45 |955.00 |1,996.87
NICS |10.33 |16.19 |22.05 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80
VAT |- |9.05 |12.73 |20.77 |- |- |- |- |- |- |-
Other indirect |- |16.44 |20.17 |28.30 |- |- |- |- |- |- |-
| Domestic rates|- |7.65 |8.88 |11.58 |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |23.32 |78.60 |109.39 |164.57 |147.32 |251.51 |355.69 |459.88 |668.25 |980.81 |2,022.67
Percentage of earnings
Income tax |10.0 |15.0 |17.5 |20.0 |23.3 |28.9 |31.7 |33.3 |35.2 |36.7 |38.3
NICS |7.9 |8.3 |8.5 |6.6 |5.0 |3.3 |2.5 |2.0 |1.4 |1.0 |0.5
VAT |- |4.6 |4.9 |5.3 |- |- |- |- |- |- |-
Other indirect |- |8.4 |7.7 |7.2 |- |- |- |- |- |- |-
Domestic rates |- |3.9 |3.4 |3.0 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |17.9 |40.2 |42.0 |42.1 |28.3 |32.2 |34.1 |35.3 |36.7 |37.7 |38.8
Married, both working
Amounts, £ per week
Income Tax |0.58 |18.08 |35.58 |70.58 |109.21 |191.08 |286.28 |397.73 |621.73 |957.73 |2,077.73
NICS |9.59 |15.89 |22.19 |34.79 |46.40 |55.49 |55.49 |55.49 |55.49 |55.49 |55.49
VAT |- |10.96 |15.25 |23.83 |- |- |- |- |- |- |-
Other indirect |- |20.40 |24.00 |31.19 |- |- |- |- |- |- |-
Domestic rates |- |10.10 |10.78 |12.15 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |10.17 |75.43 |107.80 |172.54 |155.61 |246.57 |341.77 |453.22 |677.22 |1,013.22 |2,133.22
Amounts 1988-89 prices
Income tax |0.54 |16.82 |33.10 |65.66 |101.59 |177.75 |266.31 |369.98 |578.35 |890.91 |1,932.77
NICS |8.92 |14.78 |20.64 |32.36 |43.16 |51.62 |51.62 |51.62 |51.62 |51.62 |51.62
VAT |- |10.20 |14.19 |22.17 |- |- |- |- |- |- |-
Other indirect |- |18.98 |22.33 |29.01 |- |- |- |- |- |- |-
Domestic rates |- |9.40 |10.03 |11.30 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |9.46 |70.17 |100.28 |160.50 |144.75 |229.37 |317.93 |421.60 |629.97 |942.53 |1,984.39
Percentage of earnings
Income tax |0.4 |8.6 |12.7 |16.8 |19.5 |22.7 |25.6 |28.4 |31.7 |34.2 |37.1
NICS |6.9 |7.6 |7.9 |8.3 |8.3 |6.6 |5.0 |4.0 |2.8 |2.0 |1.0
VAT |- |5.2 |5.4 |5.7 |- |- |- |- |- |- |-
Other indirect |- |9.7 |8.6 |7.4 |- |- |- |- |- |- |-
Domestic rates |- |4.8 |3.9 |2.9 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |7.3 |35.9 |38.5 |41.1 |27.8 |29.4 |30.5 |32.4 |34.6 |36.2 |38.1
Married, 2 children
Amounts, £ per week
Income tax |-0.53 |16.97 |34.47 |69.47 |116.13 |228.13 |340.13 |452.13 |676.13 |1,012.13 |2,132.13
NICS |11.10 |17.40 |23.70 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74 |27.74
VAT |- |9.60 |14.08 |23.87 |- |- |- |- |- |- |-
Other indirect |- |17.36 |20.58 |27.64 |- |- |- |- |- |- |-
Domestic rates |- |8.08 |9.65 |13.07 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |10.57 |69.41 |102.48 |161.79 |143.87 |255.87 |367.87 |479.87 |703.87 |1,039.87 |2,159.87
Amounts 1988-89 prices
Income tax |-0.49 |15.79 |32.07 |64.62 |108.03 |212.21 |316.40 |420.59 |628.96 |941.52 |1,983.38
NICS |10.33 |16.19 |22.05 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80 |25.80
VAT |- |8.93 |13.10 |22.20 |- |- |- |- |- |- |-
Other indirect |- |16.15 |19.14 |25.71 |- |- |- |- |- |- |-
Domestic rates |- |7.52 |8.98 |12.16 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |9.83 |64.57 |95.33 |150.50 |133.83 |238.02 |342.20 |446.39 |654.76 |967.32 |2,009.18
Percentage of earnings
Income Tax |-0.4 |8.1 |12.3 |16.5 |20.7 |27.2 |30.4 |32.3 |34.5 |36.1 |38.1
NICS |7.9 |8.3 |8.5 |6.6 |5.0 |3.3 |2.5 |2.0 |1.4 |1.0 |0.5
VAT |- |4.6 |5.0 |5.7 |- |- |- |- |- |- |-
Other indirect |- |8.3 |7.4 |6.6 |- |- |- |- |- |- |-
Domestic rates |- |3.8 |3.4 |3.1 |- |- |- |- |- |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |7.6 |33.1 |36.6 |38.5 |25.7 |30.5 |32.8 |34.3 |35.9 |37.1 |38.6
Notes to tables
1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances. Earners, including working wives, are assumed to pay Class 1 NI contributions at the contracted in rate. The figures
for NI contributions are financial year averages.
2. The two earner married couple is assumed to have combined earnings equal to the various multiples of average earnings. In calculating disposable income it is assumed that these earnings are split between husband and wife in the ratio 60:40.
3. For the married couple with two children, child benefit is treated as a negative income tax.
4. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These were £256.30 per week in 1988-89, and estimated to be £280.00 per week in 1989-90, using the Government
Actuary Department's assumption of 9¬ per cent. growth over 1988-89 as published in the 1989 Autumn Statement.
5. The estimates of indirect taxation are derived from the 1985 family expenditue survey, and are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households
with similar incomes and composition, and estimated payments of VAT, other indirect taxes and rates are therefore approximate, even within the income range for which figures are shown. Outside this range the margin of error is even higher and reliable
estimates cannot be made. Because of sampling variation, there can be substantial differences between the estimates obtained from family expenditure surveys for different years.
6. 1989-90 figures are converted into 1988-89 prices by assuming that the RPI is 7" per cent. higher in 1989-90 than the previous financial year. This is consistent with the forecasts published in the 1989 Autumn Statement.
Table file CW900108.075 not available
Public Spending
Mr. Ron Davies : To ask the Chancellor of the Exchequer what is the public spending planning total for 1990-91.
Mr. Norman Lamont : The public expenditure planning total for 1990- 91 has been set at £179 billion, as set out in the Autumn Statement.
Trade Deficit
Mr. Vaz : To ask the Chancellor of the Exchequer what is his latest estimate of the trade deficit for 1990.
Mr. Norman Lamont : I refer the hon. Member to table 2.3 of the Autumn Statement.
Company Cars
Mr. Riddick : To ask the Chancellor of the Exchequer whether he plans to change the nature of company car taxation ; and if he will make a statement.
Mr. Lilley : I cannot anticipate my right hon. Friend's Budget statement.
EEC Inflation
Mr. Tony Lloyd : To ask the Chancellor of the Exchequer what is the average rate of inflation for the European Economic Community.
Mr. Ryder : The average EC inflation rate is published each month by the OECD in "Main Economic Indicators".
Industrial Investment
Mrs. Maureen Hicks : To ask the Chancellor of the Exchequer what further measures he plans to introduce to stimulate industrial investment.
Mr. Norman Lamont : Investment in all sectors of the economy has been stimulated by confidence in the long-term prospects for the economy. Manufacturing investment is at a record level and the CSO's latest survey of manufacturers' investment intentions projects further growth over the next two years.
Members' Salaries
Mrs. Gorman : To ask the Chancellor of the Exchequer if he will make it his policy to allow hon. Members to receive their House of Commons salary in European currency units.
Mr. Ryder : Members' salaries are a matter for the House and are paid in accordance with the resolution of 21 July 1987. The resolution would need to be amended if Members' salaries were to be denominated in European currency units.
Column 564
PSBR
Mr. Wigley : To ask the Chancellor of the Exchequer what is his latest estimate of the net public sector borrowing requirement or debt repayment for 1989-90.
Mr. Norman Lamont : The latest forecast is for a net public sector debt repayment of £12 billion in 1989-90, as set out in the Autumn Statement.
Cigarettes
Mr. Pendry : To ask the Chancellor of the Exchequer what percentage of the United Kingdom cigarette market was accounted for by cheap foreign imports in the years 1980 to 1989 inclusive ; and if he will list the Budget tax increases on cigarettes for each of those years.
Mr. Ryder [holding answer 20 December 1989] : Figures on cheap foreign imports are not available. The table shows the share of imports in home consumption of cigarettes in the years 1980-89 and the rates of specific excise duty in place after the Budget. An ad valorem duty of 21 per cent. of the listed retail selling price applies to all cigarettes.
Cigarettes
|Share of |Excise Duty
|consumption |Rates
|Per cent. |Specific Duty
|(£ per 1,000
|cigarettes)
--------------------------------------------------------
1980 |1.7 |13.42
1981 |1.4 |18.04
1982 |1.7 |20.68
1983 |1.9 |21.67
1984 |6.4 |24.97
1985 |11.2 |26.95
1986 |12.4 |30.61
1987 |11.6 |30.61
1988 |9.6 |31.74
1989 |7.4 |31.74
<1> January to October average
Unearned Income
Mr. Simon Hughes : To ask the Chancellor of the Exchequer if he will estimate how many married women with children have unearned income.
Mr. Lilley [holding answer 20 December 1989] : It is estimated that approximately 4 million married women with children have some income from investment.
Independent Taxation
Mr. Simon Hughes : To ask the Chancellor of the Exchequer if he will provide the latest estimate of the cost of bringing in independent taxation in 1990-91 next April.
Mr. Lilley [holding answer 20 December 1989] : I refer the hon. Member to my reply to the hon. Member for
Column 565
Great Grimsby (Mr. Mitchell) on 18 December, Official Report, col 26, for the reduction in income tax liabilities in 1990-91 due to the introduction of independent taxation. The corresponding reduction in income tax receipts in 1990-91 is £500 million.The estimated effect on the receipts of capital gains tax in 1990-91 is unchanged from the tentative figure of £50 million published in the 1988 Financial Statement and Budget Report.
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