House of Commons Hansard Debates for 8 Jun 1989

Directors (Salaries)

20. Mr. George Howarth : To ask the Chancellor of the Exchequer what was the average salary increase amongst the highest paid directors of the biggest 50 companies in the last year.

33. Mr. Bradley : To ask the Chancellor of the Exchequer what was the average salary increase amongst the highest paid directors of the biggest 50 companies in the last year.

39. Mr. Nellist : To ask the Chancellor of the Exchequer what was the average salary increase amongst the highest paid directors of the biggest 50 companies in the last year.

54. Mr. McCartney : To ask the Chancellor of the Exchequer what was the average salary increase amongst the highest paid directors of the biggest 50 companies in the last year.

Mr. Brooke : Pay is for the parties involved to agree and it is not for the Government to intervene.

51. Mr. Tony Banks : To ask the Chancellor of the Exchequer what is the estimated yield to the Exchequer in 1989-90 from income tax from company directors' emoluments.

Mr. Norman Lamont : The income tax liability on company directors' emoluments is estimated to have been about £3 billion in 1985-86. Estimates for later years are not yet available.

Business Start-ups

38. Mr. Burt : To ask the Chancellor of the Exchequer what is his latest estimate of the number of business start-ups in 1988-89.

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42. Dr. Twinn : To ask the Chancellor of the Exchequer what is his latest estimate of the number of business start-ups in 1988-89.

126. Dr. Goodson-Wickes : To ask the Chancellor of the Exchequer what is his latest estimate of the number of business start-ups in 1988-89.

Mr. Major : In the calendar year 1987, the latest for which figures have been published by the Department of Employment, the net increase in the number of businesses registered for VAT was 45,000, an average of nearly 900 a week. Indications are that the rate of increase since 1987 has been even faster, and may have amounted to over 1,300 per week. The figures for 1988 will be available later in the summer. Government Expenditure

40. Mr. David Evans : To ask the Chancellor of the Exchequer what was the amount of central Government expenditure in 1988-89 expressed as a percentage of money gross domestic product ; and what were the comparable figures for the previous five years.

Mr. Major : The latest available information on the percentage of money GDP at market prices accounted for by central Government expenditure is given in the table. The central Government figures on which the percentages are based exclude privatisation proceeds and grants to local authorities but include debt interest payments.


           |Per cent.          

-------------------------------

1983-84    |34.00              

1984-85    |34.50              

1985-86    |33.50              

1986-87    |33.00              

1987-88    |31.25              

<1>1988-89 |29.00              

<1> April-December only.

41. Mr. David Davis : To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure as a share of gross domestic product since 1982-83.

44. Mr. Jacques Arnold : To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure as a share of gross domestic product since 1982-83.

48. Mr. Redwood : To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure as a share of gross domestic product since 1982-83.

Mr. Major : The 1989 Financial Statement and Budget Report gave a figure of 39 per cent. for the ratio of general Government expenditure (excluding privatisation proceeds) to gross domestic product in 1988-89. The corresponding figure for 1982-83 was 46 per cent.

Inflation

43. Mr. Matthew Taylor : To ask the Chancellor of the Exchequer what was the rate of inflation in the last month for which figures are available ; and what was the rate of inflation in West Germany, France, Italy and the Netherlands in the last month for which figures are available.

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Mr. Lilley : The current 12-month inflation rates for the countries in question are given in the weekly OECD publication "Current Economic Indicators", a copy of which is available in the House of Commons Library.

47. Mr. McAvoy : To ask the Chancellor of the Exchequer what is the current inflation rate in the United Kingdom ; and what it was one year ago.

97. Mr. McLeish : To ask the Chancellor of the Exchequer what is the current inflation rate in the United Kingdom ; and what it was one year ago.

125. Mr. McFall : To ask the Chancellor of the Exchequer what is the current inflation rate in the United Kingdom ; and what it was one year ago.

Mr. Lilley : I refer the hon. Members to the reply I gave to the hon. Member for Western Isles (Mr. Macdonald) on 6 June.

87. Mr. Ashley : To ask the Chancellor of the Exchequer what is the present level of inflation.

Mr. Lawson : I refer the hon. Member to the reply given by my hon. Friend the Economic Secretary to the hon. Member for Western Isles (Mr. Macdonald) on 6 June.

North Sea Oil

46. Mr. Flannery : To ask the Chancellor of the Exchequer what is the total amount of money received by the Exchequer from North sea oil since May 1979.

Mr. Major : Total tax revenues and royalties to United Kingdom oil and gas production over the fiscal years 1979-80 to 1988-89 are estimated at £65.2 billion. Receipts from the gas levy over the same period amounted to a further £3.8 billion. Further details are contained in the report by the Secretary of State for Energy to Parliament of April 1989 (the Brown Book).

Public Expenditure Survey

49. Mr. Worthington : To ask the Chancellor of the Exchequer what are his priorities in the forthcoming public expenditure survey.

100. Dr. Moonie : To ask the Chancellor of the Exchequer what are his priorities in the forthcoming public expenditure survey.

113. Dr. Reid : To ask the Chancellor of the Exchequer what are his priorities in the forthcoming public expenditure survey.

Mr. Major : The public expenditure survey will be carried out within the framework of the Government's objective for public expenditure. This is to maintain a downward trend over the medium term in the ratio of general Government expenditure to GDP.

Balanced Budget

50. Mr. Patnick : To ask the Chancellor of the Exchequer when, on present trends, a balanced Budget will be achieved ; and when was the last occasion a balanced Budget was achieved.

Mr. Major : The Government intend to move gradually from the present surplus towards a balanced budget over

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the medium term. The PSBR has been in surplus in each of the last two years, something achieved in only one previous year since the beginning of the 1950s. In all other years, the PSBR has been in deficit.

Balance of Trade (Manufactures)

59. Mr. Fatchett : To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in manufactures in 1989.

71. Mr. Barron : To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in manufactures in 1989.

75. Mr. Vaz : To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in manufactures in 1989.

80. Mr. Allen McKay : To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in manufactures in 1989.

Mr. Major : The Financial Statement and Budget Report for 1989-90 shows a forecast deficit for trade in manufactures in 1989 of £15 billion.

Rateable Values

61. Mr. Rooker : To ask the Chancellor of the Exchequer when he expects the Inland Revenue valuation officer to be able to inform businesses of the new rateable values following re-valuation.

Mr. Norman Lamont : Inland Revenue valuation officers are to complete the revaluation and send each charging authority a copy of the proposed list for its area by 31 December 1989. The authority is then to deposit the copy at its principal office and give notice of its availability for public inspection. The list comes into force from 1 April 1990.

Personal Disposable Income

62. Sir Fergus Montgomery : To ask the Chancellor of the Exchequer what was the growth of real personal disposable income for the latest full year for which figures are available.

86. Mr. Waller : To ask the Chancellor of the Exchequer what was the growth of real personal disposable income for the latest full year for which figures are available.

103. Mr. Marlow : To ask the Chancellor of the Exchequer what was the growth of real personal disposable income for the latest full year for which figures are available.

Mr. Norman Lamont : Real personal disposable income is estimated to have grown by 5 per cent. in 1988.

Business Investment

65. Mr. Quentin Davies : To ask the Chancellor of the Exchequer what was the share of gross domestic product represented by business investment in 1988.

121. Mr. Michael Brown : To ask the Chancellor of the Exchequer what was the share of gross domestic product represented by business investment in 1988.

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Mr. Major : Business investment as a share of GDP was 14.6 per cent. in 1988, the highest level recorded.

Poverty

67. Mr. Henderson : To ask the Chancellor of the Exchequer when he last met representatives of the Low Pay Unit to discuss the numbers of people in poverty.

73. Ms. Mowlam : To ask the Chancellor of the Exchequer when he last met representatives of the Low Pay Unit to discuss the numbers of people in poverty.

89. Ms. Quin : To ask the Chancellor of the Exchequer when he last met representatives of the Low Pay Unit to discuss the numbers of people in poverty.

Mr. Major : My right hon. Friend has not met representatives of the Low Pay Unit recently.

Credit Cards

68. Dr. Michael Clark : To ask the Chancellor of the Exchequer when he last met representatives of the credit card companies ; and what subjects were discussed.

Mr. Lilley : My right hon. Friend often meets representatives of financial insitutions to discuss a variety of issues.

Gross Domestic Product

70. Mr. Hanley : To ask the Chancellor of the Exchequer what was the growth of gross domestic product in 1987 and 1988.

131. Mr. Andy Stewart : To ask the Chancellor of the Exchequer what was the growth of gross domestic product in 1987 and 1988.

Mr. Major : Gross domestic product is estimated to have grown by 4 per cent. in both 1987 and 1988.

Governor of the Bank of England

74. Mr. Cousins : To ask the Chancellor of the Exchequer when he next expects to meet the Governor of the Bank of England ; and what matters he proposes to discuss.

101. Mr. Illsley : To ask the Chancellor of the Exchequer what was discussed when he last met the Governor of the Bank of England.

105. Mr. Hinchliffe : To ask the Chancellor of the Exchequer what was discussed when he last met the Governor of the Bank of England.

107. Mr. Caborn : To ask the Chancellor of the Exchequer what was discussed when he last met the Governor of the Bank of England.

Mr. Lilley : My right hon. Friend meets the Governor from time to time to discuss a variety of matters.

International Debt

78. Mr. Skinner : To ask the Chancellor of the Exchequer when he next intends to meet other Finance Ministers to discuss international debt ; and if he will make a statement.

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Mr. Lilley : My right hon. Friend the Chancellor of the Exchequer met other Finance Ministers on June 1 in the ministerial Council of the OECD. International debt was discussed among other issues.

Balance of Trade

84. Ms. Walley : To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in visible goods in 1989.

Mr. Major : I refer the hon. Member to the reply I gave to the hon. Member for Stretford (Mr. Lloyd) on 6 June.

Mr. Teddy Taylor : To ask the Chancellor of the Exchequer what importance he attaches to the balance of trade (a) with the rest of the EEC and (b) with the rest of the world ; and what account he takes of the EEC deficit when framing his economic policies.

Mr. Major : The overall current account is one indicator among many that are assessed within the framework of the Government's financial strategy. Movements in trade balances with individual economies or groups of economies will reflect, among other developments, changes in the United Kingdom's commercial and trading arrangements with them.

Value Added Tax

85. Ms. Armstrong : To ask the Chancellor of the Exchequer what proportion of gross earnings a one-earner family with two children on average earnings pays in value added tax in (a) 1979 and (b) now.

111. Mr. Ronnie Campbell : To ask the Chancellor of the Exchequer what proportion of gross earnings a one-earner family with two children on average earnings pays in value added tax in (a) 1979 and (b) now.

Mr. Lilley : I refer the hon. Member to the reply given by my right hon. Friend the Financial Secretary to the hon. Member for Edinburgh, South (Mr. Griffiths) on6 June.

Higher Rate Taxpayers

90. Mr. Boswell : To ask the Chancellor of the Exchequer what proportion of total income tax revenue was paid by higher rate taxpayers in 1978-79 ; and what proportion was paid by them in 1988-89.

108. Mr. Andrew MacKay : To ask the Chancellor of the Exchequer what proportion of total income tax revenue was paid by higher rate taxpayers in 1978-79 ; and what proportion was paid by them in 1988-89.

122. Mr. Paice : To ask the Chancellor of the Exchequer what proportion of total income tax revenue was paid by higher rate taxpayers in 1978-79 ; and what proportion was paid by them in 1988-89.

Mr. Norman Lamont : In 1978-79 higher rate taxpayers were liable to pay 20 per cent. of total income tax due. By 1988-89 their share had increased to 32 per cent.

Output Statistics

94. Mr. Janman : To ask the Chancellor of the Exchequer what are his latest figures for output per hour worked in the United Kingdom.

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Mr. Major : The April 1989 edition of the "Economic Progress Report" presented estimates by a leading academic which show that output per hour worked in the United Kingdom economy as a whole in 1986 was about 50 per cent. higher than in Japan and only 5 per cent. lower than Germany.

Tax Reform

99. Mr. Devlin : To ask the Chancellor of the Exchequer if he will make a statement setting out Government policy on tax reform.

123. Mr. Carrington : To ask the Chancellor of the Exchequer if he will make a statement setting out Government policy on tax reform.

Mr. Norman Lamont : The Government's programme of tax reform has sought to create a climate in which businesses can thrive and individual initiative and risk-taking are rewarded. A major objective has been to leave people more of their own money, so that they can choose for themselves what to do with it. In particular the Government have reduced marginal tax rates so that an extra pound of earnings or profits is really worth having. We have reduced the basic rate of income tax from 33 to 25 per cent. and set a target of 20 per cent. Business taxation has been radically restructured, leaving the main United Kingdom corporation tax rate at 35 per cent., one of the lowest in the industrialised world. Five major taxes have been abolished completely.

We have also tried to ensure that, as a general rule, people's choices are distorted by the tax system as little as reasonably possible. In general, the aim is to charge lower rates on a broader base ; thereby improving incentives and reducing distortions. However, the Government has also been prepared, when it is sensible, to promote well-targeted tax reliefs which will help to make the economy work better. Other important objectives have been to provide a fair deal for married women and to simplify the tax system.

Bank Rate

109. Mr. Mullin : To ask the Chancellor of the Exchequer what was the bank rate on (a) 8 June 1988 and (b) 8 June 1989.

Mr. Lilley : The bank base rates stood at 8 per cent. on 8 June 1988 and 14 per cent. on 8 June 1989.

European Monetary System

112. Mr. Beith : To ask the Chancellor of the Exchequer what recent representations he has received on his policy on the European monetary system.

Mr. Lilley : My right hon. Friend has received a number of representations on that subject.

132. Mr. Denzil Davies : To ask the Chancellor of the Exchequer what are the major disadvantages he has identified of including the pound sterling in the exhange rate mechanism of the European monetary system.

Mr. Lawson : I refer the right hon. Member to the speech I made to the Royal Institute of International Affairs on 25 January.

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Married Man's Allowance

114. Mr. Wood : To ask the Chancellor of the Exchequer what recent consideration he has given to phasing out the married man's tax allowance.

Mr. Lamont : When independent taxation begins in April 1990 the present structure of income tax allowances will be replaced by the personal allowance and the married couple's allowance. A husband and wife will each have their own personal allowance and the new system will continue to recognise marriage through the married couple's allowance. This will be given in the first instance to the husband. The personal allowance and the married couple's allowance will together be equivalent to the present married man's allowance.

Group of Seven

115. Mr. Patrick Thompson : To ask the Chancellor of the Exchequer when he next intends to meet his counterparts in the Group of Seven finance Ministers ; and what matters he intends to discuss.

Mr. Lilley : At the economic summit in Paris in July.

Delors Report

129. Mr. Simon Hughes : To ask the Chancellor of the Exchequer what representations he has received on his response to the Delors committee report on economic and monetary union in the European Community.

Mr. Lilley : My right hon. Friend has received a number of representations on the Government's response to the Delors committee report.

Overseas Assets

130. Mr. Curry : To ask the Chancellor of the Exchequer what are the latest figures for the identified stock of United Kingdom net overseas assets ; and what these represent as a share of gross domestic product.

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