Vol. 422 No. 4
28 Mr. Taylor asked the Minister for Finance if he will give an estimate of the amount payable in value-added tax by a family with two children on average earnings in 1985 and the latest estimate for the amount payable at the present time; and if he will make a statement on the trend indicated and on the matter in general.
Official data do not exist which would allow the information requested by the Deputy to be provided. However, an indication of the overall effect of VAT adjustments between 1985 and 1992 can be obtained by taking 1987 Household Budget Survey data and applying 1985 and 1992 VAT rates to them. It is estimated on this basis that the average family comprising two adults and two children would pay VAT amounting to £17.94 under the 1992 structure and rates, compared with £18.20 under the 1985 system. These figures should be interpreted with care since they take no account of improvement in living standards, nor of the general increase in the prices level between 1985 and 1992. Furthermore, they implicitly assume that the consumption pattern and relative prices of 1987 apply to both years.
