| Previous Section | Home Page |
Column 11
In July 1987 the High Court held that the Inland Revenue did not have power to make regulations that sought to bring into account payments made by societies in transitional periods before 6 April 1986. That decision was reversed by the Court of Appeal in April 1989. In October 1990 the House of Lords concluded that the Revenue had power to bring the payments in the transitional periods into account but not to charge tax at the rates in force for 1985-86. Copies of the judgments are available in the Library.Mortgage Interest Relief
Mr. Soley : To ask the Chancellor of the Exchequer if he will publish in the Official Report a table showing, for the current financial year, his estimate of the number of cases in which relief will be given on mortgage interest payments tax relief, the average value of that relief per mortgagor, and the cost of that relief, for each of the following total income ranges (a) up to £4,000, (b) £4,001 to £5,000, (c) £5,001 to £6,000, (d) £6,001 to £7,000, (e) £7,001 to £8,000, (f) £8,001 to £9,000, (g) £9,001 to £10,000, (h) £10,001 to £12,000, (i) £12,001 to £15,000, (j) £15,001 to £20,000, (k) £20,001 to £25,000, (l) £25,001 to £30,000 and (m) over £30,000.
Mr. Maude : Available information is given in my reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 13 March, Official Report, at column 552.
Invisible Trade
Ms. Mowlam : To ask the Chancellor of the Exchequer (1) by what methods monthly invisible trade figures are calculated by other Community member states ; and whether monthly invisible trade data produced by other Community Governments are directly comparable with Central Statistical Office statistics produced for the United Kingdom ;
(2) what sampling method is used by the Central Statistical Office to calculate the monthly trade figures for invisibles ; what changes in Central Statistical Office methods of calculating invisible trade figures have been made in each of the last 12 months ; and what proposals he has to change the statistical method of calculating invisible trade figures.
Mr. Maples : Other Community countries, except the Irish Republic, require their residents to report individual payments to or receipts from overseas, usually above a threshold, and these data are used by the central banks to compile estimates of invisible trade. Only Germany, Greece and Spain choose to publish monthly invisibles estimates. The United Kingdom does not compile monthly figures of invisibles ; the monthly figures shown in the monthly balance of payments press notice are either simply one third of the relevant reported quarterly figure or, for the most recent months, a projection. The projection for the most recent months is mainly an extrapolation from earlier quarterly estimates but it takes account of recent trends and of movements in exchange and interest rates. It is subject to considerable uncertainty.
All Community countries seek to compile invisibles estimates according to the guidelines on concepts and definitions issued by the International Monetary Fund. Therefore, the United Kingdom's quarterly estimates, which underlie the monthly calculations, are comparable with those for other Community countries.
Column 12
The Central Statistical Office does not use sampling methods to calculate the monthly estimates of invisibles and it has not made any change to its methods for calculating these estimates in the past 12 months. The Central Statistical Office has no plans at present to change the way that it calculates monthly figures of invisibles, however this will be re-examined in the light of the recommendations of the review of balance of payments statistics. This is currently being carried out as part of the Chancellor's initiative on economic statistics which, among other things, is seeking to improve the quarterly estimates of invisibles. Details can be found in Economic Trends for March 1991, a copy of which is in the Library.Mr. Alan Williams : To ask the Chancellor of the Exchequer what is his latest estimate at constant 1990 prices of the invisible balance in each year since 1979 ; and what is his estimate of the value of United Kingdom produced crude oil for these years.
Mr. Norman Lamont : Information relating to the volume of invisible trade is only calculated at 1985 prices and only for services. Estimates for exports and imports of services at 1985 prices for the years 1979 to 1989 can be found in table 4.1 of the Pink Book "United Kingdom Balance of Payments" which is available in the Library of the House, or on the Central Statistical Office database which can be accessed through the Library. An estimate for 1990 will be included in the 1991 Pink Book, to be published in the summer.
The estimates of the value of United Kingdom produced crude oil, including natural gas liquids, for the years 1979 to 1990 are as follows :
|£ billion
|(current
|prices)
------------------------------------
1979 |5.7
1980 |8.9
1981 |12.3
1982 |14.4
1983 |17.0
1984 |20.6
1985 |19.9
1986 |9.3
1987 |9.9
1988 |7.2
1989 |7.3
1990 |<1>8.6
<1> Provisional.
Earnings
Mr. Ralph Howell : To ask the Chancellor of the Exchequer what has been the growth of real take-home pay for a married man with two children who is on half male average earnings since 1978-79 each year to the latest date available.
Mr. Maude : The figures are given in the table.
Growth in real take home pay for married man with two children on half male average earnings: 1978-79 to: |Per cent. ------------------------------------ 1979-80 |2.8 1980-81 |2.5 1981-82 |-0.6 1982-83 |0.6 1983-84 |5.6 1984-85 |9.8 1985-86 |11.2 1986-87 |15.2 1987-88 |19.8 1988-89 |23.1 1989-90 |24.4 1990-91 |24.5 1991-92 |29.3 Notes to table: (1) Real take home pay is taken to include child benefit to allow comparability with 1978-79 when support for families with children was given partly through child tax allowances. (2) Income tax payments are calculated on the assumption that no tax reliefs are received other than the standard allowances and that earnings are the only source of income. NI contributions are calculated at the class I contracted-in rate. (3) Where determinants of take home pay such as NICs or child benefit have varied during the course of a year, the average value for the financial year has been used. (4) Average male earnings are the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These are assumed to be £ 307.90 a week in 1990-91 and £ 334.10 a week in 1991-92 using the Government Actuary Department's assumptions of 10 per cent. growth for 1990-91 over 1989-90 and 8" per cent. for 1991-92 over 1990-91 as published in the 1990 autumn statement. (5) Real changes are calculated using the average level of the Retail Prices Index in each financial year.
Income Tax
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Newcastle upon Tyne, East, of 6 March, Official Report, columns 165-66, taking account of the changes announced in the 1991 Budget and giving estimates up to 1991-92.
Mr. Maude : Latest estimates of the annual change in income tax liability resulting from the changes in tax rates, allowances, thresholds, and the restriction of mortgage interest relief to the basic rate are in the table. The 1978-79
Column 14
income tax regime has been indexed to 1991-92 levels by reference to the statutory formula, and allowing for independent taxation. For the purposes of these calculations the indexed regime of 1978 -79 is applied directly to the income base of 1991-92. In practice, retention of the regime, indexed as appropriate, for the intervening years would have led to changes in the income base.
Average reduction in income tax per individual<1> in 1991-92
compared with 1978-79 indexed regime
Range of individual's income in 1991-92 (£ ) |Average
|reduction
|at 1991-92
|income levels
|(£ )
------------------------------------------------------------------------------------------------------------------------------------------
Under 5,000 |130
5,000 to 10,000 |350
10,000 to 15,000 |640
15,000 to 20,000 |910
20,000 to 25,000 |1,240
25,000 to 30,000 |1,600
30,000 to 40,000 |2,190
40,000 to 50,000 |3,470
50,000 to 60,000 |5,740
60,000 to 70,000 |9,050
Over 70,000 |34,640
Total |970
<1>Individuals paying income tax under the 1978-79 indexed regime.
Taxes and Benefits
Mr. Nicholas Brown : To ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Great Grimsby (Mr. Mitchell) of 17 January, Official Report, columns 559-62, taking account of the changes announced in the 1991 Budget and giving estimates up to 1991- 92.
Mr. Maude : Updated figures for 1990-91 and estimates for 1991-92 are given in the table.
Column 13
Income Tax, NICS and indirect tax payments at multiples of average earnings, 1990-91
---------------------------------------------------------------------------------------------------------------------------
Married, both working
Amounts, £ per week
Income Tax |1.81 |22.69 |43.57 |85.34 |127.10 |218.00 |333.91 |467.55 |734.83 |1,135.75|2,472.15
NICS |7.75 |15.27 |22.79 |37.82 |51.88 |62.92 |62.92 |62.92 |62.92 |62.92 |62.92
VAT |- |14.23 |19.66 |30.51 |- |- |- |- |- |- |-
Other indirect |- |24.01 |28.13 |36.37 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |9.56 |76.20 |114.15 |190.04 |178.98 |280.92 |396.83 |530.47 |797.75 |1,198.67|2,535.07
Amounts, 1990-91 prices
Income Tax |1.73 |21.71 |41.70 |81.67 |121.63 |208.63 |319.55 |447.45 |703.23 |1,086.91|2,365.85
NICS |7.42 |14.61 |21.81 |36.19 |49.65 |60.21 |60.21 |60.21 |60.21 |60.21 |60.21
VAT |- |13.62 |18.81 |29.20 |- |- |- |- |- |- |-
Other indirect |- |22.98 |26.92 |34.81 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |9.15 |72.92 |109.24 |181.87 |171.28 |268.84 |379.77 |507.66 |763.45 |1,147.13|2,426.06
Percentage of Earnings
Income Tax |1.1 |9.1 |13.0 |17.0 |19.0 |21.7 |25.0 |28.0 |31.4 |34.0 |37.0
NICS |4.6 |6.1 |6.8 |7.5 |7.8 |6.3 |4.7 |3.8 |2.7 |1.9 |0.9
VAT |- |5.7 |5.9 |6.1 |- |- |- |- |- |- |-
Other indirect |- |9.6 |8.4 |7.3 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |5.7 |30.4 |34.2 |37.9 |26.8 |28.0 |29.7 |31.8 |34.1 |35.9 |37.9
Married 2 children
Amounts, £ per week
Income tax |1.52 |22.40 |43.28 |85.05 |144.21 |177.85 |411.49 |545.13 |812.41 |1,213.33|2,549.73
NICS |11.39 |18.91 |26.43 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46
VAT |- |12.27 |17.93 |30.29 |- |- |- |- |- |- |-
Other indirect |- |20.32 |24.00 |32.04 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |12.91 |73.90 |111.64 |178.84 |175.67 |309.31 |442.95 |576.59 |843.87 |1,244.79|2,581.19
Amounts, 1990-91 prices
Income Tax |1.45 |21.44 |41.42 |81.39 |138.01 |265.90 |393.80 |521.69 |777.48 |1,161.16|2,440.09
NICS |10.90 |18.10 |25.29 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11
VAT |- |11.74 |17.16 |28.99 |- |- |- |- |- |- |-
Other indirect |- |19.45 |22.97 |30.66 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |12.35 |70.72 |106.84 |171.15 |168.12 |296.01 |423.90 |551.80 |807.58 |1,191.26|2,470.20
Percentage of Earnings
Income Tax |0.9 |8.9 |13.0 |17.0 |21.6 |27.7 |30.8 |32.6 |34.7 |36.3 |38.2
NICS |6.8 |7.5 |7.9 |6.3 |4.7 |3.1 |2.4 |1.9 |1.3 |0.9 |0.5
VAT |- |4.9 |5.4 |6.0 |- |- |- |- |- |- |-
Other indirect |- |8.1 |7.2 |6.4 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |77.7 |29.5 |33.4 |35.7 |26.3 |30.9 |33.1 |34.5 |36.1 |37.3 |38.6
Income Tax, NICS and indirect tax payments at multiples of average earnings, 1991-92
|0.5 |0.75 |1 |1.5 |2 |3 |4 |5 |7 |10 |20
---------------------------------------------------------------------------------------------------------------------------
Single
Amounts, £ per week
Income Tax |25.92 |46.80 |67.68 |109.45 |173.57 |307.21 |440.85 |574.49 |841.77 |1,242.69|2,579.09
NICS |11.39 |18.91 |26.43 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46
VAT |- |13.56 |18.16 |28.18 |- |- |- |- |- |- |-
Other indirect |- |18.79 |23.39 |33.43 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |37.31 |98.06 |135.66 |202.52 |205.03 |338.67 |472.31 |605.95 |873.23 |1,274.15|2,610.55
Amounts, 1990-91 prices
Income Tax |24.81 |44.79 |64.77 |104.74 |166.11 |294.00 |421.89 |549.79 |805.57 |1,189.25|2,468.19
NICS |10.90 |18.10 |25.29 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11
VAT |- |12.98 |17.38 |26.97 |- |- |- |- |- |- |-
Other indirect |- |17.98 |22.38 |31.99 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |35.71 |93.84 |129.83 |193.81 |196.21 |324.11 |452.00 |579.89 |835.68 |1,219.36|2,498.30
Percentage of Earnings
Income Tax |15.5 |18.7 |20.3 |21.8 |26.0 |30.7 |33.0 |34.4 |36.0 |37.2 |38.6
NICS |6.8 |7.5 |7.9 |6.3 |4.7 |3.1 |2.4 |1.9 |1.3 |0.9 |0.5
VAT |- |5.4 |5.4 |5.6 |- |- |- |- |- |- |-
Other indirect |- |7.5 |7.0 |6.7 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |22.3 |39.1 |40.6 |40.4 |30.7 |33.8 |35.3 |36.3 |37.3 |38.1 |39.1
Married, no children
Amounts, £ per week
Income Tax |17.65 |38.53 |59.41 |101.18 |160.34 |293.98 |427.62 |561.26 |828.54 |1,229.46|2,565.86
NICS |11.39 |18.91 |26.43 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46 |31.46
VAT |- |12.47 |17.47 |28.38 |- |- |- |- |- |- |-
Other indirect |- |20.78 |25.41 |35.50 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |29.04 |90.69 |128.72 |196.52 |191.80 |325.44 |459.08 |592.72 |860.00 |1,260.92|2,597.32
Amounts, 1990-91 prices
Income Tax |16.89 |36.87 |56.86 |96.83 |153.45 |281.34 |409.23 |537.13 |792.91 |1,176.59|2,455.53
NICS |10.90 |18.10 |25.29 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11 |30.11
VAT |- |11.93 |16.72 |27.16 |- |- |- |- |- |- |-
Other indirect |- |19.89 |24.32 |33.97 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |27.79 |86.79 |123.19 |188.07 |183.55 |311.45 |439.34 |567.23 |823.02 |1,206.70|2,485.64
Percentage of Earnings
Income Tax |10.6 |15.4 |17.8 |20.2 |24.0 |29.3 |32.0 |33.6 |35.4 |36.8 |38.4
NICS |6.8 |7.5 |7.9 |6.3 |4.7 |3.1 |2.4 |1.9 |1.3 |0.9 |0.5
VAT |- |5.0 |5.2 |5.7 |- |- |- |- |- |- |-
Other indirect |- |8.3 |7.6 |7.1 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |17.4 |36.2 |38.5 |39.2 |28.7 |32.5 |34.4 |35.5 |36.8 |37.7 |38.9
Column 17
Income tax, NICS and indirect tax payments at multiples of average earnings, 1990-91
Multiples of average earnings
|0.5 |0.75 |1 |1.5 |2 |3 |4 |5 |7 |10 |20
---------------------------------------------------------------------------------------------------------------------------
Single
Amounts, £ per week
Income tax |24.04 |43.28 |62.53 |101.91 |163.49 |286.65 |409.81 |532.97 |779.29 |1,148.77|2,380.37
NICS |10.64 |17.56 |24.49 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28
VAT |- |11.23 |15.05 |23.38 |- |- |- |- |- |- |-
Other indirect |- |17.08 |21.27 |30.42 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |34.68 |89.15 |123.34 |183.99 |191.77 |314.93 |438.09 |561.25 |807.57 |1,177.05|2,408.65
- |- |- |- |- |- |-
Percentage of earnings
Income tax |15.6 |18.7 |20.3 |22.1 |26.5 |31.0 |33.3 |34.6 |36.2 |37.3 |38.7
NICS |6.9 |7.6 |8.0 |6.1 |4.6 |3.1 |2.3 |1.8 |1.3 |0.9 |0.5
VAT |- |4.9 |4.9 |5.1 |- |- |- |- |- |- |-
Other indirect |- |7.4 |6.9 |6.6 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |22.5 |38.6 |40.1 |39.8 |31.1 |34.1 |35.6 |36.5 |37.5 |38.2 |39.1
Married, no children
Amounts, £ per week
Income tax |15.77 |35.01 |54.26 |92.75 |150.26 |273.42 |396.58 |519.74 |766.06 |1,135.54|2,367.14
NICS |10.64 |17.56 |24.49 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28
VAT |- |10.32 |14.48 |23.62 |- |- |- |- |- |- |-
Other indirect |- |18.98 |23.19 |32.45 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |26.41 |81.87 |116.42 |177.10 |178.54 |301.70 |424.86 |548.02 |794.34 |1,163.82|2,395.42
Percentage of earnings
Income tax |10.2 |15.2 |17.6 |20.1 |24.4 |29.6 |32.2 |33.8 |35.5 |36.9 |38.4
NICS |6.9 |7.6 |8.0 |6.1 |4.6 |3.1 |2.3 |1.8 |1.3 |0.9 |0.5
VAT |- |4.5 |4.7 |5.1 |- |- |- |- |- |- |-
Other indirect |- |8.2 |7.5 |7.0 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |17.2 |35.5 |37.8 |38.3 |29.0 |32.7 |34.5 |35.6 |36.9 |37.8 |38.9
Married, both working
Amounts, £ per week
Income tax |1.32 |20.57 |39.81 |78.30 |116.79 |203.55 |313.75 |436.91 |683.23 |1,052.71|2,284.31
NICS |7.42 |14.34 |21.27 |35.13 |47.23 |56.56 |56.56 |56.56 |56.56 |56.56 |56.56
VAT |- |11.74 |16.25 |25.27 |- |- |- |- |- |- |-
Other indirect |- |21.90 |25.65 |33.15 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |8.74 |68.55 |102.98 |171.85 |164.02 |260.11 |370.31 |493.47 |739.79 |1,109.27|2,340.87
Percentage of earnings
Income tax |0.9 |8.9 |12.9 |17.0 |19.0 |22.0 |25.5 |28.4 |31.7 |34.2 |37.1
NICS |4.8 |6.2 |6.9 |7.6 |7.7 |6.1 |4.6 |3.7 |2.6 |1.8 |0.9
VAT |- |5.1 |5.3 |5.5 |- |- |- |- |- |- |-
Other indirect |- |9.5 |8.3 |7.2 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |5.7 |29.7 |33.4 |37.2 |26.6 |28.2 |30.1 |32.1 |34.3 |36.0 |38.0
Married, 2 children
Amounts, £ per week
Income tax |1.27 |20.51 |39.76 |78.25 |135.76 |258.92 |382.08 |505.24 |751.56 |1,121.04|2,352.64
NICS |10.64 |17.56 |24.49 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28 |28.28
VAT |- |10.06 |14.77 |25.12 |- |- |- |- |- |- |-
Other indirect |- |18.45 |21.79 |29.14 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |11.91 |66.58 |100.81 |160.79 |164.04 |287.20 |410.36 |533.52 |779.84 |1,149.32|2,380.92
Percentage of earnings
Income tax |0.8 |8.9 |12.9 |16.9 |22.0 |28.0 |31.0 |32.8 |34.9 |36.4 |38.2
NICS |6.9 |7.6 |8.0 |6.1 |4.6 |3.1 |2.3 |1.8 |1.3 |0.9 |0.5
VAT |- |4.4 |4.8 |5.4 |- |- |- |- |- |- |-
Other indirect |- |8.0 |7.1 |6.3 |- |- |- |- |- |- |-
|--- |--- |--- |--- |--- |--- |--- |--- |--- |--- |---
Total |7.7 |28.8 |32.7 |34.8 |26.6 |31.1 |33.3 |34.7 |36.2 |37.3 |38.7
Notes to Tables
(1) Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the
standard allowances and
only have income from employment. All earners, including wives, are assumed to pay Class 1 national insurance
contributions at the
contracted-in rate.
(2) Since 1990-91, husbands and wives have been taxed independently. Previously the tax liability of couples depended on
their joint income.
To permit comparisons with earlier years, the table therefore shows income tax and national insurance contributions paid
by a married couple
as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the
husband and wife share the
relevant multiple of earnings in the ratio 60:40.
(3) In order to provide comparability with 1978-79, when support for children was given partly through child tax
allowances, child benefit
is treated as a negative income tax for the married couple with two children. (For 1991-92, the child benefit figure is a
financial year average.)
(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 are estimated to be £ 307.90 per week in 1990-91 and £ 334.10 per week in 1991-92, using the Government Actuary
Department's
assumptions of 10 per cent. growth over 1989-90 and 8.5 per cent. growth over 1990-91, as published in the 1990 autumn
statement.
(5) The estimates of indirect taxes are based on equations derived from the 1985 family expenditure survey, uprated to
later years using
forecasts of aggregate tax receipts. They 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 the same composition and similar incomes and estimated payments of
VAT and other
indirect taxes 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 estimates obtained
from family expenditure surveys for different years.
Local Government Finance
Mr. Dewar : To ask the Chancellor of the Exchequer if he will publish in the Official Report, an analysis for the years 1984-85 to 1993- 94, following the format of table 12.1 of Cm. 1515, of central Government support to local authorities outside the Secretary of State's responsibility.
Column 20
Mr. David Mellor : The information requested, consistent with that given in the "Statistical Supplement to the 1990 Autumn Statement"--Cm. 1520--is given in the table.
Column 19
Central Government support for local authority expenditure in Scotland provided by departments other than the Scottish Office
£ million
|1985-86 |1986-87 |1987-88 |1988-89 |1989-90 |1990-91 |1991-92 |<1>1992-93|<1>1993-94
------------------------------------------------------------------------------------------------------------------------------------------------
Voted in Estimates
Current grants within AEF<2>
Industry, energy, trade and
employment |- |- |- |- |- |3 |3 |- |-
Social security |9 |9 |10 |10 |12 |11 |12 |10 |10
|------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |9 |9 |10 |10 |12 |14 |15 |20 |20
Current grants outside AEF<2>
Agriculture, fisheries and food |3 |4 |4 |3 |3 |8 |1 |- |-
Industry, energy, trade and
employment |3 |4 |4 |5 |12 |13 |- |- |-
Social security |450 |498 |579 |550 |617 |683 |747 |810 |860
|------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |456 |506 |586 |558 |632 |704 |749 |810 |860
|------- |------- |------- |------- |------- |------- |------- |------- |-------
Total current grants |465 |515 |596 |568 |644 |718 |764 |820 |880
Non-voted
Net capital allocations
Industry, energy, trade and
employment |1 |- |- |- |- |- |- |- |-
Roads and transport |2 |2 |2 |1 |1 |1 |1 |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |2 |2 |2 |1 |1 |2 |2 |- |-
|------- |------- |------- |------- |------- |------- |------- |------- |-------
Total |467 |517 |599 |570 |645 |719 |766 |820 |880
<1> Figures for these years are rounded to the nearest £10 million.
<2> Aggregate External Finance.
Output Statistics
Mr. Ralph Howell : To ask the Chancellor of the Exchequer if he will give details of (a) the overall output and (b) the output per person engaged in each of the following industries, for the years 1979, 1980, 1985 and
Column 20
1990, (i) agriculture, (ii) the steel industry, (iii) coal mining, (iv) the car industry, (v) the electrical goods industry,(vi) local government and (vii)the national health service.Mr. Mellor : Estimates are not compiled on precisely the basis requested, but index numbers of output and of output per head are available for the following industry groups, on a 1985=100 basis, as shown in the table :
Column 19
Output Output per head
|1979 |1980 |1985 |1990 |1979 |1980 |1985 |1990
----------------------------------------------------------------------------------------------
Agriculture, forestry and fishing |74.8 |83.0 |100.0|104.6|n/a |n/a |n/a |n/a
Metals |118.5|90.0 |100.0|121.2|68.1 |57.9 |100.0|135.3
Coal and coke |136.6|139.9|100.0|97.2 |96.8 |99.7 |100.0|225.2
Motor vehicles and parts |131.1|113.3|100.0|120.9|78.8 |73.2 |100.0|132.3
Electrical and instrument engineering |79.5 |77.8 |100.0|125.6|65.1 |65.4 |100.0|132.8
Medical, health and veterinary services |n/a |n/a |100.0|102.0|n/a |n/a |n/a |n/a
Figures for local government are not available.
Column 20
Performance-related Pay
Mr. John Marshall : To ask the Chancellor of the Exchequer if he will make a statement about the impact of performance-related pay.
Column 21
Mrs. Gillian Shephard : Performance-related pay in the form of additional increments depending on assessment in annual reports now covers the vast majority of civil servants. Managers in departments have generally welcomed the introduction of performance-related pay as a means to attract and retain quality people and to motivate them to produce high sustained performance.There are other ways in which pay is related to performance in the civil service. There is a special bonus scheme which departments can use to reward individuals or groups for particular achievements. In addition a number of agencies have introduced group bonus schemes which pay bonuses if staff beat targets for efficiency savings. Also the majority of industrial civil servants are covered by bonus schemes. All these schemes are designed to encourage efficiency and motivate staff.
Civil Servants (London)
Mr. Simon Hughes : To ask the Chancellor of the Exchequer how many civil servants were employed in Greater London in 1980, 1985 and 1990 ; what is the projected number for 1995 ; and what is each figure as a percentage of the civil service as a whole.
Mrs. Gillian Shephard : Available information for the Greater London area covers civil servants employed in the London pay area, an area within an 18 mile radius of Charing Cross. The information for the years 1980, 1985 and 1990, is shown in the table.
Number of staff employed in the London Pay Area<1>
|Number in |Total Civil |Percentage of
|London |Service |Civil Service
|as a whole
----------------------------------------------------------------------
1980 |152,000 |707,800 |21.5
1985 |126,600 |619,600 |20.4
1990 |116,600 |562,400 |20.7
Source: "Civil Service Statistics".
<1> Non-industrial and industrial civil servants, full time
equivalent
(part-time staff count as half units).
No central forecasts have been produced for civil service staff numbers in 1995, to obtain the relevant data would involve a servicewide exercise at disproportionate cost.
Bloodstock (VAT)
Sir John Wheeler : To ask the Chancellor of the Exchequer what rate of value added tax is charged upon bloodstock in the Republic of Ireland, France, Germany and the United Kingdom.
Mrs. Gillian Shephard : The VAT rates for bloodstock in Ireland, France, Germany and the United Kingdom are respectively 2.3, 5.5, 7 and 17.5 per cent.
Theatre Tickets (VAT)
Mr. Patchett : To ask the Chancellor of the Exchequer if he will now remove theatre tickets from liability to value added tax.
Mrs. Gillian Shephard : I have no plans to alter the arrangements for taxation of theatre tickets.
Column 22
Public Sector Pensions
Mr. Dicks : To ask the Chancellor of the Exchequer (1) what is his policy in respect of the appropriateness of a contributory element in public sector index-linked pension schemes ;
(2) what would have been the effect on the Exchequer, in the last financial year where figures are available, of a contribution by civil servants to their pensions at rates of 5 per cent, 7 and 9 per cent. of their salary ;
(3) what representations he has received regarding the benefits in respect of expenditure and on other counts of introducing a contributory pension scheme for civil servants ; and if he will make a statement.
Mrs. Gillian Shephard : The Government are satisfied that the contribution arrangements in the public service pension schemes which they control are appropriate. The value of pension benefits, including index- linking, continues to be a relevant factor in public service pay determination. Our policy is to provide a remuneration package, including pay, pension and other conditions of service, which is sufficient to recruit, retain and motivate staff of adequate quality. Public servants therefore bear their share of pension costs in two ways : by contributions from pay, and through pay set at levels which take proper account of the value of pension benefits. Civil servants make an overt contribution towards the cost of family benefits but in the main meet their share of pension costs through pay being set at levels lower than would otherwise be appropriate. If civil servants were to meet the whole of their share of the pension costs by overt contributions, the consequence for the Exchequer would be broadly neutral. This is because pay would need to be adjusted in order to offer a similar remuneration package to employees.
Representations are made from time to time about the civil service pension scheme. The Government have no plans to alter the way in which civil servants bear their share of pension costs in the foreseeable future.
Supply Estimates
Mr. John Garrett : To ask the Chancellor of the Exchequer if he will publish a list indicating the distribution of the 1991-92 supply estimates votes by size from the number under £1 million to the number over £5 billion, by £100 million steps.
Mr. Mellor : The information requested can be derived from table A.1 of the Summary and Guide to the 1991-92 Supply Estimates--Cm. 1454.
OECD
Mr. Flynn : To ask the Chancellor of the Exchequer what contribution has been made by Her Majesty's Government to the development assistance committee of the Organisation for Economic Co-operation and Development since December 1990.
Mr. Maples : The costs of the development assistance committee and its working groups are met from the contributions of member states to the overall OECD budget. The United Kingdom share of the costs of the DAC in 1990-91 was approximately £160,000.
Column 23
Mortgage Annuity Schemes
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer if he will bring forward proposals in the Finance Bill to increase the tax relief limit on mortgage annuity schemes for older people.
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer how many older people are currently benefiting from tax relief on mortgage annuity schemes.
Mr. Maude : Information on the number of outstanding home annuity loans qualifying for tax relief is not available and a reliable estimate could be provided only at disproportionate cost. About 2,000 new home annuity loans qualifying for tax relief were taken out in 1990-91.
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer what representations he has received concerning the £30,000 limit on mortgage interest tax relief for loans used by older people to purchase annuity schemes.
Mr. Maude : My right hon. Friend the Chancellor of the Exchequer has received a number of representations.
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer what steps he has taken to encourage older people to raise money against their homes.
Mr. Maude : There are various schemes on the market for those wishing to release equity in their homes. They include interest-only mortgages, home income plans, home reversion schemes, investment bond schemes and roll-up loans.
Mr. Andrew Bowden : To ask the Chancellor of the Exchequer whether he has estimated the cost of raising the tax relief limit for mortgage annuity schemes for older people, from £30,000 to £60,000.
Mr. Maude : A reliable estimate is not available and could be provided only at disproportionate cost.
Foundation for Sport and the Arts
Mr. Pendry : To ask the Chancellor of the Exchequer (1) if he will make it his policy to place advertisements for the posts of trustee for the Foundation for Sport and the Arts in the appropriate national journals or newspapers ; what method and timescale he proposes to adopt for making appointments to the foundation ; and if he will place in the Library a list of trustees to the foundation, together with the date on which they were appointed ;
(2) what measures are included in the draft articles of association for the Foundation for Sport and the Arts ; if he will place a copy of the draft articles of association in the Library, and a copy of the final articles of association once these have been agreed ; if he will list in full the bodies he proposes to consult before agreeing the articles of association ; and if he will make it his policy to include in the articles of association details of the ratio of allocation of the foundation's resources between sport and the arts.
Mr. Mellor : The proposal from one of the pools promoters was for a foundation set up as a trust by all three member companies of the Pools Promoters Association. In the first instance, it will be for the association to consider the detailed terms of the trust deed
Column 24
although, as the Chancellor made clear in his Budget statement on 19 March, Official Report, column 175, we will wish to establish that these are satisfactory before we could agree to a cut in pool betting duty. The procedures for appointing trustees will similarly be for the members of the association, acting within the terms of the trust deed. I will discuss with the pools promoters how best to ensure that hon. Members can be informed of the details of the trust and of the names of the trustees.Heliports (London)
Mr. Simon Hughes : To ask the Chancellor of the Exchequer what are the reasons why Her Majesty's Customs and Excise now require a heliport on Sea Container house.
Mrs. Gillian Shephard : Her Majesty's Customs and Excise neither require nor are seeking a heliport.
Seafarers (Tax Incentives)
Mr. David Porter : To ask the Chancellor of the Exchequer if he will make it his policy to extend to seafarers who work in the offshore supply and standby industries and serve equal periods at sea the concession announced in the Budget on tax incentives to citizens overseas in the merchant navy ; and if he will make a statement.
Mr. Maude : My right hon. Friend's Budget proposal to extend the existing special tax relief for seafarers applies to United Kingdom resident seafarers working on ships overseas. The Government have no plans to extend the relief to seafarers on ships operating on the United Kingdom continental shelf, which is regarded as part of the United Kingdom.
Northern Ireland Customs Service
Mr. Mallon : To ask the Chancellor of the Exchequer if he will give details of the progress that has been made to date on proposals to decentralise work within the Northern Ireland Customs service.
Mrs. Gillian Shephard : Her Majesty's Customs and Excise have decided to relocate certain administrative VAT work to a new unit, which will employ around 100 staff, at Newry in Northern Ireland. Operations are expected to commence in late 1992.
Economic Growth (Statistics)
Mr. Lawson : To ask the Chancellor of the Exchequer if he will publish a table, for each year from 1979 to the present time, showing (a) the official Treasury forecast for economic growth in that year made at the time of the Budget, together with (b) the contemporaneous consensus of outside forecasts and (c) the eventual recorded outcome.
Mr. Norman Lamont [holding answer 22 March 1991] :
Annual growth in real GDP (per cent.)
|Treasury |Consensus of
|Budget |outside |Outturn
|forecasts |forecasts<1>
-----------------------------------------------------------------
1979 |0.3 |n/a |2.8
1980 |-2.5 |n/a |-2.0
1981 |-2.0 |n/a |-1.2
1982 |1.4 |0.4 |1.7
1983 |2.0 |<2>1.7 |3.8
1984 |3.1 |2.5 |1.8
1985 |3.3 |2.9 |3.8
1986 |3.1 |2.4 |3.6
1987 |3.0 |2.8 |4.4
1988 |3.2 |2.7 |4.2
1989 |2.3 |2.8 |1.7
1990 |1.0 |1.4 |0.5
<1> Average of outside forecasts prior to Budget forecast.
Coverage
and number of forecasts has changed from year to year.
<2> In January 1983.
Local Income Tax
Mr. Hardy : To ask the Chancellor of the Exchequer what rate of local income tax would be needed to yield the same sum as that required from the community charge in 1990-91 and 1991-92.
Mr. Mellor [holding answer 28 March 1991] : The rate of local income tax needed would vary between local authorities depending on the budgeted yield of the community charge in particular areas, local income levels and the precise way in which the system operated.
Accounting Practices
Mr. Tim Smith : To ask the Chancellor of the Exchequer what would be the cost of applying the proposal to extend the period for which a company can carry back a trading loss from one year to three years to losses in accounting periods ending (a) on or after 1 April 1990 and (b) on or after 1 October 1990 ; and what are the reasons why the necessary legislation will be introduced only at the Committee stage of the Finance Bill.
Mr. Maude [holding answer 28 March 1991] : The cost of applying the proposal to extend the period for which a company can carry back a trading loss from one year to three years is estimated at (a) £250 million in 1991-92 for accounting periods ending on or after 1st April 1990, and (b) £200 million in 1991-92 for accounting periods ending on or after 1st October 1990. The proposed legislation will be introduced at the Committee stage because it will not be possible to complete it in time for inclusion in the Finance Bill as published.
Column 26
Value Added Tax
Mr. Steinberg : To ask the Chancellor of the Exchequer how much income to the Treasury it is anticipated that the increase of 2.5 per cent. in value added tax for 1991-92 will raise.
Mrs. Gillian Shephard : The information is published in table 1.1 of the Financial Statement and Budget Report 1991-92.
Mr. Steinberg : To ask the Chancellor of the Exchequer how much was raised in 1989-90 from value added tax.
Mrs. Gillian Shephard : A total of £29,483 million. Further information is available in the 1989-90 report of the Commissioners of Her Majesty's Customs and Excise.
Mr. Atkinson : To ask the Chancellor of the Exchequer whether the balance of the cost of holiday accommodation for which deposits have been received by hotels and guest houses as part of an advanced booking contract, will be subject to the increased VAT rate ; and if he will make a statement.
Mrs. Gillian Shephard : The increased rate of VAT will apply to any balance outstanding from the date of the rate change--1 April--on holidays booked in advance. This is because the normal tax point for the supply of a holiday is when the services are performed by the hotel or guest house. While an earlier tax point is created by the receipt of a deposit--advance payment--it applies only in respect of the amount of money paid over. Guidance in VAT publications make this clear, as well as covering the position when there is a VAT rate change.
Mr. Atkinson : To ask the Chancellor of the Exchequer what representations he has received from the tourism industry on the effect of the increase in VAT on advance holiday bookings ; and if he will make a statement.
Mrs. Gillian Shephard : I have received a number of
representations. These have primarily concerned the need for a concession to be introduced whereby the old VAT rate of 15 per cent. would apply to any outstanding balances on holidays pre-booked before the date of the rate change, because otherwise the industry might have to absorb the increase. I am unable to accede to this request because of the existing tax point rules --which reflect EC law. The normal tax point for the supply of a holiday is when the services are performed by the hotel or guest house. While an earlier tax point is created by the receipt of a deposit--advance payment-- this applies only to the amount of money paid over that time.
Column 27
TRADE AND INDUSTRY
Association of British Travel Agents
Mr. Snape : To ask the Secretary of State for Trade and Industry what discussions his Department has recently had with the Association of British Travel Agents about financial protection for British holidaymakers booking holidays through the Association of British Travel Agents agents.
Mr. Leigh : ABTA has requested financial assistance from Government to help meet its liabilities arising from the collapse of Sun Living Ltd. I have made it clear that I do not consider it would be appropriate for public funds to be used for this purpose.
Taurus
Mr. John Marshall : To ask the Secretary of State for Trade and Industry if his Department has considered an application for an exhibition by the international stock exchange relating to Taurus to be displayed in the Upper Waiting Hall.
Mr. Redwood : My Department has received such an application and I am pleased to say that approval has been given for an exhibition relating to Taurus from 1 to 5 July.
Coats Viyella plc
Sir Charles Morrison : To ask the Secretary of State for Trade and Industry (1) whether he will make it his policy to take into account the level of gearing by Coats Viyella plc in mounting its bid for Tootal Group plc before reaching a decision on whether to allow this bid to proceed ;
(2) what assessment he has made of the relative level of gearing of a merged company consisting of Coats Viyella plc and Tootal Group plc if the current bid for Tootal Group is successful as against that which would have obtained if the two companies had merged by agreement in 1989 ; and what weight he will give to this in deciding whether to allow the bid to proceed.
Mr. Carr : To ask the Secretary of State for Trade and Industry what information he has on the prospective gearing of the combined company if the acquisition of Tootal Group plc by Coats Viyella plc is successful and on how Coats Viyella plc intends to fund the consequential rationalisation costs of such a merger.
Mr. Bermingham : To ask the Secretary of State for Trade and Industry what consideration he is giving to the respective EC market shares for named brand textile products for Coats Viyella plc and Tootal Group plc in his consideration of the proposed takeover ; if he will make it his policy to take into consideration the extent of which Coats Viyella plc has acted in accordance with the required accounting procedures in declaring its annual results for the last financial year ; and if he will make a statement.
Mr. Redwood : In reaching his decision on whether to refer the proposed acquisition by Coats Viyella of Tootal Group to the Monopolies and Mergers Commission, my right hon. Friend the Secretary of State will take into account all relevant aspects of the proposal, in the light of the advice of the Director General of Fair Trading.
Column 28
Mr. Carr : To ask the Secretary of State for Trade and Industry if he will publish the figures supplied to his Department for the loss of profit made by (a) Coats Viyella and (b) Tootal Group plc from their respective United Kingdom manufacturing operations.
Mr. Redwood : No. In reaching his decision on whether or not to refer the proposed acquisition by Coats Viyella of Tootal Group to the MMC, my right hon. Friend the Secretary of State will be taking into account the advice of the Director General of Fair Trading. The director general's advice on merger references may contain commercially sensitive information, including financial information on the companies concerned, and is not made public.
| Next Section
| Home Page |