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Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the effect on revenues in 1993-94, and in a full year, of (a) increasing and (b) decreasing the limit for mortgage tax relief by (i) £1,000, (ii) £2,000 (iii) £5,000 and (iv) £10,000.
Mr. Dorrell : The estimated costs at 1992-93 levels of increasing or decreasing the limit for mortgage interest tax relief are shown in the table. The estimates are based on the distribution of existing mortgages and therefore exclude behavioural effects which might result.
Column 678
The costs for 1993-94 will depend on the pattern of borrowing, the eligibility of borrowers for mortgage interest tax relief, tax rates and interest rates.
Limit on size of |Cost (yield) of from
loan |increasing
|(decreasing) the
|ceiling on mortgage
|interest tax relief
|at 1992-93 levels
£ |£ million
---------------------------------------------------------------
40,000 |600
35,000 |400
32,000 |200
31,000 |100
29,000 |(100)
28,000 |(200)
25,000 |(500)
20,000 |(1,100)
Mr. Milburn : To ask the Chancellor of the Exchequer (1) if he will provide a table showing the number of recipients of higher-rate mortgage interest tax relief for each year since 1979-80 in the United Kingdom by region ;
(2) if he will provide a table showing the number of recipients of mortgage interest tax relief for each year since 1979-80 in the United Kingdom by region ;
(3) what was the total value of providing higher-rate mortgage interest tax relief for each year since 1979-80 in the United Kingdom by region (a) at current prices and (b) at 1979-80 prices ; (4) pursuant to his answer of 17 June 1992, Official Report, columns 537-38, to the hon. Member for Angus, East (Mr. Welsh), if he will (a) update the table with the latest information he has available on mortgage interest tax relief and (b) provide the information at both 1979-80 prices and cash prices.
Mr. Dorrell [holding answer 24 February 1993] : Information for the total of mortgage interest relief is in the tables. The regional distributions for 1979-80 to 1982-83 have been derived from the relevant surveys of personal incomes. However, following the introduction of mortgage interest relief at source--MIRAS--in April 1983, regional information cannot be extracted from Inland Revenue records. Broad estimates for the years 1983-84 to 1991-92 have accordingly been based on analyses of the family expenditure surveys for the years concerned.
Reliable estimates of the value of and the number of recipients of higher rate mortgage interest tax relief by region are not readily available and could be produced only at disproportionate cost.
Column 679
Cost of mortgage interest relief<1>
£ million
|1979-80 |1980-81 |1981-82 |1982-83 |1983-84 |1984-85 |1985-86 |1986-87 |1987-88 |1988-89 |1989-90 |1990-91 |1991-92<2><3>|1992-93<2>
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Northern |60 |80 |70 |95 |100 |140 |180 |200 |210 |250 |310 |350 |310 |230
Yorkshire |110 |155 |150 |160 |210 |260 |340 |350 |360 |370 |460 |510 |450 |340
North West |135 |200 |180 |215 |260 |330 |440 |490 |510 |530 |690 |770 |640 |500
East Midlands |85 |115 |110 |130 |180 |230 |300 |320 |330 |340 |430 |480 |410 |340
West Midlands |145 |160 |190 |170 |230 |280 |370 |350 |360 |430 |550 |620 |510 |400
East Anglia |45 |50 |60 |75 |90 |130 |170 |170 |180 |220 |270 |300 |250 |180
Greater London |235 |280 |290 |260 |400 |500 |670 |620 |650 |780 |980 |110 |710 |740
Other South East |375 |555 |600 |650 |740 |950 |1,270 |1,220 |1,260 |1,350 |1,750 |1,940 |1,510 |1,390
South West |110 |140 |170 |140 |230 |300 |400 |380 |400 |520 |660 |730 |570 |480
England |1,300 |1,735 |1,820 |1,900 |2,440 |3,120 |4,140 |4,100 |4,260 |4,790 |6,100 |6,800 |5,360 |4,600
Wales |45 |65 |80 |80 |110 |150 |200 |210 |220 |180 |240 |270 |230 |190
Scotland |85 |125 |120 |140 |190 |260 |350 |300 |310 |370 |470 |530 |420 |340
Northern Ireland |20 |35 |30 |30 |40 |50 |60 |60 |60 |60 |90 |100 |90 |70
United Kingdom |1,450 |1.960 |2,050 |2,150 |2,780 |3,580 |4,750 |4,670 |4,850 |5,400 |6,900 |7,700 |6,100 |5,200
<1> Excludes option mortgage scheme (1979-80 to 1983-84).
<2> Provisional.
<3> Higher rate relief was abolished in 1991-92.
Column 679
Cost of mortgage interest relief at 1979-80 prices<1>
£ million
|1979-80 |1980-81 |1981-82 |1982-83 |1983-84 |1984-85 |1985-86 |1986-87 |1987-88 |1988-89 |1989-90 |1990-91 |1991-92<2><3>|1992-93<2>
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Northern |60 |70 |50 |60 |60 |70 |100 |110 |110 |120 |150 |150 |120 |90
Yorkshire |110 |130 |110 |110 |130 |140 |200 |190 |190 |190 |220 |220 |180 |130
North West |135 |170 |130 |140 |160 |180 |250 |260 |260 |270 |320 |340 |260 |190
East Midlands |85 |100 |80 |90 |110 |120 |170 |170 |170 |170 |200 |210 |160 |130
West Midlands |145 |140 |140 |110 |140 |150 |210 |190 |190 |220 |260 |270 |200 |150
East Anglia |45 |40 |40 |50 |60 |70 |110 |90 |90 |100 |130 |130 |100 |70
Greater London |235 |240 |220 |170 |250 |270 |380 |340 |340 |390 |460 |480 |280 |280
Other South East |375 |470 |450 |430 |470 |510 |720 |660 |660 |680 |820 |850 |600 |530
South West |110 |120 |130 |100 |150 |160 |230 |210 |210 |260 |310 |320 |230 |190
England |1,300 |1,480 |1,350 |1,260 |1,530 |1,670 |2,360 |2,220 |2,220 |2,410 |2,870 |2,970 |2,130 |1,760
Wales |45 |60 |60 |50 |70 |80 |110 |120 |120 |90 |110 |120 |90 |70
Scotland |85 |110 |90 |90 |120 |140 |200 |160 |160 |180 |220 |230 |170 |130
Northern Ireland |20 |30 |20 |20 |20 |20 |40 |30 |30 |30 |40 |40 |40 |30
United Kingdom |1,450 |1,680 |1,520 |1,420 |1,740 |1,910 |2,710 |2,530 |2,530 |2,710 |3,240 |3,360 |2,430 |1,990
<1> Excludes option mortgage scheme (1979-80 to 1983-84).
<2> Provisional.
<3> Higher rate relief was abolished in 1991-92.
Column 679
Number of mortgagors<1>
Thousands
|1979-80 |1980-81 |1981-82 |1982-83 |1983-84 |1984-85 |1985-86 |1986-87 |1987-88 |1988-89 |1989-90 |1990-91 |1991-92<2><3>|1992-93<2>
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Northern |280 |280 |290 |310 |380 |390 |410 |420 |440 |520 |540 |550 |560 |560
Yorkshire |580 |570 |560 |560 |680 |700 |730 |740 |770 |770 |780 |800 |800 |780
North West |730 |730 |720 |750 |900 |940 |970 |1,000 |1,040 |1,110 |1,140 |1,160 |1,180 |1,130
East Midlands |380 |380 |420 |450 |560 |590 |610 |650 |680 |660 |670 |680 |690 |750
West Midlands |610 |540 |530 |510 |630 |660 |690 |730 |750 |860 |870 |890 |890 |870
East Anglia |190 |160 |180 |210 |260 |270 |280 |310 |320 |350 |360 |370 |370 |370
Greater London |750 |720 |660 |620 |770 |800 |840 |900 |930 |1,010 |1,020 |1,040 |1,050 |1,020
Other South East |1,320 |1,410 |1,420 |1,560 |1,850 |1,870 |1,910 |1,910 |1,980 |1,930 |1,970 |2,020 |2,040 |2,130
South West |410 |400 |420 |440 |560 |610 |650 |730 |750 |840 |850 |870 |880 |870
England |5,250 |5,190 |5,200 |5,410 |6,590 |6,830 |7,090 |7,390 |7,660 |8,050 |8,200 |8,380 |8,460 |8,480
Wales |230 |230 |240 |270 |350 |370 |390 |420 |430 |390 |400 |410 |410 |440
Scotland |320 |340 |320 |360 |450 |480 |500 |520 |540 |640 |660 |670 |680 |700
Northern Ireland |90 |100 |90 |90 |110 |120 |120 |120 |120 |120 |140 |140 |150 |180
United Kingdom |5,890 |5,860 |5,850 |6,130 |7,500 |7,800 |8,100 |8,450 |8,750 |9,200 |9,400 |9,600 |9,700 |9,800
<1> Excludes option mortgage scheme (1979-80 to 1983-84).
<2> Provisional.
<3> Higher rate relief was abolished in 1991-92.
Ms Harman : To ask the Chancellor of the Exchequer what are the most recent figures for the number of non-taxpayers who are claiming mortgage interest relief at source, in the United Kingdom ; and how much this is costing the Exchequer.
Mr. Dorrell : MIRAS is available on all qualifying mortgages regardless of the tax status of the mortgagor. A tentative estimate, based on the 1991 family expenditure
Column 680
survey, is that there are about 1 million non-taxpayers receiving mortgage interest relief at source in 1992-93 at a cost of some £360 million.Income Tax
Mr. Dewar : To ask the Chancellor of the Exchequer how many taxpayers pay income tax at the rate of 20 per cent. only ; and what is their average (a) gross and (b) taxable income.
Column 681
Mr. Dorrell : Latest estimates for 1992-93 indicate that about 4.4 million taxpayers pay income tax only at the lower rate of 20 per cent. Their average gross income is £5,400 and their average taxable income is £930.
Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the revenue yield from non-indexation of the basic rate limit for income tax in 1993-94 and in a full year ; and what would be the increase in the lower rate band which could be financed by this amount.
Mr. Dorrell : Compared with 2.6 per cent. indexation, the yield would be about £110 million in 1993-94, £180 million in a full year. For an equivalent cost in a full year the lower rate band could be increased by about £200.
Mr. Dewar : To ask the Chancellor of the Exchequer what evidence he has from local tax offices of employers not operating PAYE systems properly and failing to take into account the lower rate band of income tax when calculating tax deductions ; and what has been done to rectify this situation.
Mr. Dorrell : The Inland Revenue became aware during the first half of the 1992-93 financial year that not all employers were taking the lower rate band into account in operating PAYE. In October 1992, local tax offices were advised on how to help these employers apply the tax tables correctly. These efforts have been reinforced by national press coverage of the topic in December 1992 following a local tax office initiative.
Value Added Tax
Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the revenue yield in 1993-94 and in a full year of (a) raising the rate of VAT by 1 per cent. and (b) extending VAT to (i) children's clothing and footwear, (ii) food, (iii) domestic fuel, (iv) fares, (v) domestic construction, (vi) books, (vii) newspapers, (viii) other zero-rated supplies and (ix) all zero-rated supplies.
Sir John Cope : Table 5.8 in the 1992 "Autumn Statement" shows an estimate that a one percentage point increase in the rate of VAT would produce a yield of £1,675 million in 1993-94 and £2,350 million in the full year of 1994-95. The statistical supplement to the 1992 "Autumn Statement" shows the estimated cost in 1992-93 in terms of forgone revenue from zero-rating various goods and services.
The figures are as follows:-
|£ million
------------------------------------------------------------
Children's clothing and footwear |600
Food |7,000
Domestic fuel |2,600
Domestic passenger transport |1,100
International passenger transport |800
Domestic construction |1,800
Books, newspapers, magazines |1,100
Water and sewerage services |700
Drugs and medicines on prescription |500
Supplies to charities |200
Ships and aircraft above a certain size |500
These figures make no allowance for the likely behavioural response to applying the standard rate of VAT to these items so the actual yield would probably be less than these figures suggest.
Mr. Betts : To ask the Chancellor of the Exchequer (1) what estimates have been made of the impact of (i) 5 per cent. and (ii) 17 per cent. VAT on air travel on (a) fare levels, (b) the number of passenger journeys, (c) the transfer of traffic to private road vehicles and (d) road congestion ;
(2) what estimates have been made of the effect of 5 per cent. and 17 per cent. VAT on road passenger transport on (a) fare levels, (b) concessionary fare levels, (c) the number of passenger journeys, (d) the transfer of traffic to private road vehicles and (e) increased road congestion ;
(3) what estimates have been made of the effect of 5 per cent. and 17 per cent. VAT on rail travel on (a) fare levels, (b) concessionary fare levels, (c) the number of passenger journeys, (d) the amount of freight transported, (e) the transfer of traffic to private road vehicles and (f) increased road congestion.
Sir John Cope : A positive rate of VAT on public passenger transport would lead to higher fares and some reduction in traffic and some diversion to private road vehicles. All of these impacts would, however, depend in particular upon the individual degree of competition on routes, and numerical estimates are not available. Freight traffic already bears VAT.
Child Care
Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the effect on revenues in 1993-94 and in a full year of extending the income tax exemption for workplace nurseries as a benefit in kind to (a) child care cheques and vouchers and (b) other employer-assistance with child care ; and what the effects would be if relief were limited to the basic rate.
Mr. Dorrell : The available information is given in my reply to the hon. Member for Peckham (Ms. Harman) on 20 January 1993, at column 260. The effect at 1992-93 levels of limiting the relief to the basic rate would be minimal.
Taxpayers
Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the number and percentage of adults who pay income tax broken down by (a) sex, (b) marital status and (c) whether they are over or under pension age, giving for each group the numbers whose highest marginal tax rate is (i) 40 per cent., (ii) 25 per cent. and (iii) 20 per cent.
Mr. Dorrell : Latest estimates of taxpayer numbers in 1992-93 based on a projection of the 1990-91 survey of personal incomes are shown in the table. Available estimates are in terms of age below or above 65 rather than pension age.
Column 683
À
1992-93 taxpayers
Male Female All taxpayers
Single Married Single Married
|Aged under 65 |Aged 65 and over|Aged under 65 |Aged 65 and over|Aged under 65 |Aged 65 and over|Aged under 65 |Aged 65 and over
'000 |'000 |'000 |'000 |'000 |'000 |'000 |'000 |'000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Lower rate taxpayers |720 |200 |640 |300 |800 |380 |1,100 |280 |4,400
Basic rate taxpayers |4,200 |260 |6,400 |640 |2,700 |490 |3,800 |260 |18,700
Higher rate taxpayers |240 |20 |1,100 |60 |90 |30 |100 |20 |1,700
All taxpayers |5,200 |480 |8,200 |1,000 |3,600 |900 |5,000 |550 |24,800
Mr. Dewar : To ask the Chancellor of the Exchequer if he will estimate the cost in 1993-94 and in a full year of increasing the lower rate band by (a) £100, (b) £500, and (c) £1,000 ; and how many additional taxpayers would face a top marginal rate of income tax of 20 per cent. as a result, giving figures separately for men and women.
Mr. Dorrell : Estimated costs compared with 2.6 per cent. indexation of the 1992-93 allowances and thresholds, are in the table.
Increase inRevenue coRevenue coAdditional
lower rate 1993-94 full year numbers of
taxpayers with a
marginal rate of 20
per cent.
|Males |Females
£ |£ million|£ million|(000s) |(000s)
------------------------------------------------------------
100 |80 |100 |110 |90
500 |390 |490 |440 |470
1,000 |760 |960 |950 |860
Mr. Dewar : To ask the Chancellor of the Exchequer what are the tax liabilities of taxpayers in 1992-93 in the income ranges (a) including and (b) excluding the effects of changes in national insurance contributions (i) under £5,000, (ii) £5,000 to £10,000, (iii) £10,000 to £15,000, (iv) £15,000 to £20,000, (v) £20,000 to £25,000, (vi) £25,000 to £30,000, (vii) £30,000 to £40,000, (viii) £40, 000 to £50,000, (ix) £50,000 to £70,000, (x) over £70,000 and (xi) over £100,000, compared with what their liability would be under the indexed 1987-88 income tax regime.
Mr. Dorrell : Latest estimates of the average reductions in income tax liability resulting from the changes in tax rates, allowances and thresholds are in the table. The 1987-88 income tax regime has been indexed to 1992-93 levels by reference to the statutory formula and allowing for independent taxation.
Average change in
1992-93 compared
with 1987-88
indexed regime (£)
Range of individuals |Income tax |Income tax and
income in 1992-93 |National Insurance
(£)
------------------------------------------------------------------------------------
Under 5,000 |80 |90
5,000-10,000 |190 |250
10,000-15,000 |260 |400
15,000-20,000 |340 |490
20,000-25,000 |430 |570
25,000-30,000 |510 |630
30,000-40,000 |370 |480
40,000-50,000 |730 |840
50,000-70,000 |2,150 |2,240
70,000-80,000 |4,840 |4,920
Over 80,000 |18,900 |18,900
Average |400 |480
Column 684
I regret that a reliable analysis of taxpayers with incomes over £100,000 is not available.For the purpose of the calculations the indexed regime of 1987-88 has been applied directly to the income base of 1992-93. In practice, retention of the 1987-88 regime, indexed as appropriate, for the intervening years would have led to changes in the income base.
Tax Exempt Special Savings Accounts
Mr. Dewar : To ask the Chancellor of the Exchequer what evidence he has of the effect of the introduction of TESSAs on savings.
Mr. Dorrell : Nearly 3.5 million people have invested more than £12 billion in TESSAs. TESSA has quickly become established as an important way of encouraging medium-term savings.
Tax Exemption
Ms. Harman : To ask the Chancellor of the Exchequer (1) how many people in the income groups of individual's income (a) below £5,000, (b) from £5,000 to £10,000, (c) from £10,000 to £15,000, (d) from 15,000 to £20,000, (e) from £20,000 to £25,000, (f) from £25,000 to £30,000, (g) from £30,000 to £40,000, (h) from £40,000 to £50,000, (i) from £50,000 to £60,000, (j) from £60,000 to £70,000 and (k) over £70,000, received tax relief on profit-related pay schemes in the latest year for which figures are available ; what proportion this represents of the total number of people in each income group ; and what was the average tax relief of people with profit-related pay within each income group ;
(2) how many people in the income groups of individual's income (a) below £5,000, (b) from £5,000 to £10,000, (c) from £10,000 to £15,000, (d) from 15,000 to £20,000, (e) from £20,000 to £25, 000, (f) from £25,000 to £30,000, (g) from £30,000 to £40,000, (h) from £40,000 to £50,000, (i) from £50,000 to £60,000, (j) from £60,000 to £70,000 and (k) over £70,000, benefited from inheritance tax exemption in the latest year for which figures are available ; what proportion this represents of the total number of people in each income group ; what was the average exemption within each income group ; and what was the cost to the Treasury of inheritance tax exemption in each income group ;
(3) how many people in the income groups of individual's income (a) below £5,000, (b) from £5,000 to £10,000, (c) from £10,000 to £15,000, (d) from 15,000 to £20,000, (e) from £20,000 to £25, 000, (f) from £25,000 to £30,000, (g) from £30,000 to £40,000, (h) from £40,000 to £50,000, (i) from £50,000 to £60,000, (j) from £60,000 to £70,000 and (k) over £70,000, took out personal equity plans in the latest year for which figures are available ;
Column 685
what proportion this represents of the total number of people in each income group ; and what was the average tax relief on PEPs, within each income group ;(4) how many people in the income groups of individual's income (a) below £5,000, (b) from £5,000 to £10,000, (c) from £10,000 to £15,000, (d) from 15,000 to £20,000, (e) from £20,000 to £25, 000, (f) from £25,000 to £30,000, (g) from £30,000 to £40,000, (h) from £40,000 to £50,000, (i) from £50,000 to £60,000, (j) from £60,000 to £70,000 and (k) over £70,000, benefited from capital gains tax exemption in the latest year for which figures are available ; what proportion this represents of the total number of people in each income group ; what was the average exemption within each income group ; and what was the cost to the Treasury of capital gains tax exemption in each income group.
Mr. Dorrell : I regret that the information requested is not available.
Retail Prices Index
Ms. Harman : To ask the Chancellor of the Exchequer what would be the impact on 1992-93 on the retail prices index of raising £1 billion from (a) tobacco products, (b) beer, (c) wine and spirits, (d) petrol, (e) VAT and (f) vehicle excise duty.
Sir John Cope : The necessary changes in the rate of duty or VAT have been calculated on the basis of figures published in table 5.8 of the 1992 "Autumn Statement." The estimated impact effects are as follows, assuming the full tax increases are passed on to consumers in the form of higher prices :
|Per cent. change in|RPI impact effect
|duty
|per cent.
-------------------------------------------------------------------------------------------
Tobacco |18.9 |0.45
Beer |49.3 |0.40
Wine and Spirits |73.2 |0.93
Petrol |11.4 |0.23
VED |31.0 |0.26
VAT, percentage point increase |0.6 |0.27
Some of the additional tax burden may fall on businesses, in particular any increase in petrol duty. If businesses pass this cost on to consumers in the form of higher prices, the long run effect on the RPI may be greater than indicated.
Tobacco
Mr. Llwyd : To ask the Chancellor of the Exchequer what was the total income in the form of duties or tax received by the Exchequer from the sale of tobacco and tobacco products during each year since 1989-90 ; and if he will make a statement.
Sir John Cope : The following is the available information :--
Column 686
|Tobacco Duty |Estimates of VAT on
|Receipts |Tobacco Expenditure
|£ million |£ million
--------------------------------------------------------------------------------
1989-90 |5,035 |1,070
1990-91 |5,636 |1,160
1991-92 |6,290 |1,490
Taxes and Excise Duties
Mr. Dewar : To ask the Chancellor of the Exchequer if he will update the information given in tables 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.8 of the autumn statement 1992 on the basis of the December retail prices index.
Mr. Dorrell : Updated figures for 1993-94 on the basis of an indexation factor of 2.6 per cent. are given in the tables. Tables 5.6 and 5.8 showing illustrative changes in taxes are unaffected by the change in the indexation factor. A correction to the figures published in table 5.6 of the "Autumn Statement" was given in answer to my hon. Friend the Member for Chelmsford (Mr. Burns) on 16 February 1993, Official Report, column 122.
Table 5-Income Tax
|1992-93|1993-94
|£ |£
------------------------------------------------------------------
Personal allowance |3,445 |3,535
Personal allowance (age 65 to 74) |4,200 |4,310
Personal allowance (age 75 and over) |4,370 |4,490
Married couple's allowance |1,720 |1,770
Married couple's allowance (age 65 to 74) |2,465 |2,535
Married couple's allowance (age 75 and
over) |2,505 |2,575
Additional personal<1> and widow's
bereavement allowance |1,720 |1,770
Aged income limit<2> |14,200 |14,600
Lower rate band |2,000 |2,100
Basic rate limit<3> |23,700 |24,400
<1> Primarily for single parents.
<2> If the total income, less allowable deductions, of a taxpayer
aged 65 or over exceeds this limit, the age-related allowances
are reduced by £1 for each additional £2 of income until the
basic levels of the personal and married couple's allowances are
reached.
<3> Higher rate income tax is payable on income (less allowances
and those reliefs which are allowed at the higher rate) in excess
of the basic rate limit.
Table 5.3-Inheritance tax
|1992-93|1993-94
|£'000 |£'000
----------------------------------
Threshold |150 |154
Table 5-Capital gains tax
|1992-93 |19993-94
|£ |£
---------------------------------------
Annual exempt amount:
Individuals |5,800 |6,000
Trusts |2,900 |3,000
Column 687
Table 5.5-Costs of indexation for 1993-94 ---------------------------------------------------------- Indexation of income tax allowances lower rate band and basic rate limit<1> |750 |1,000 Of which: Increases in allowances |560 |720 Increase in lower rate band<2> |80 |100 Increase in the basic rate limit<2> |110 |180 Indexation of inheritance tax threshold |10 |25 Indexation of capital gains exempt amount |0 |5 <1>Cost includes the consequential effects on capital gains tax. <2>Additional cost after previous change has been introduced.
Column 687
Table 5
Direct Effects of Revalorising all Excise Duties<1>
£ million Typical item Current level of Price change<3>
yield<2> duty on typical
items
|1993-94 |1994-95
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total<4> |600 |675 |- |0.19 per cent.
Of which:
Beer and cider |55 |70 |Pint of beer |23.3p |0.7p
Wine |10 |15 |75 cl bottle of table wine|94.5p |2.9p
Spirits |20 |20 |70 cl bottle |£5.55 |17.1p
Tobacco<6> |130 |150 |20 king size |£1.36 |3.6p
Petrol |215 |240 |Litre of unleaded |23.4p |0.7p
Derv |70 |70 |Litre |22.9p |0.7p
VED<7> |80 |85 |Cars and light vans |£110.00 |£2.86
<1> These are estimated on the assumption that total consumers' expenditure at factor cost does not change.
<2> Assuming implementation on 1 April 1993.
<3> The price change is assumed to equal the change in duty plus the consequential change in VAT except in the case of VED where VAT is not payable. The price change is for the typical
item described above the rounded to the nearest one-tenth of a pence.
<4> Includes receipts from tax on items not listed below.
<5> Impact effect on the RPI.
<6> The duty on cigarettes has ad valorem and specific elements; revalorisation and the illustrative percentage change relate only to the specific element, but the price change includes
the consequential increase in ad valorem duty and VAT.
<7> All VED, including HGVs as well as cars and light vans.
TRANSPORT
Rail Investment
Mr. Wilson : To ask the Secretary of State for Transport if he will list the annual investment in the existing railway including track renewals, for each year since 1963, and the equivalent figure proposed by his Department for 1993-94.
Mr. Freeman : Figures for expenditure on track renewals are not readily available prior to 1979. Figures for investment in the existing railway including track renewals and rolling stock after 1979 are in the following table. BR's initial estimate for investment in the existing railway in 1993-94 is around £550 million. The latest forecast of the outturn for 1992-93 is £1,058 million. A further £150 million has been provided for future rolling stock leases.
|£ million cash
---------------------------------------------
1979 |367
1980 |431
1981 |409
1982 |378
1983 |439
1984-85 |557
1985-86 |550
1986-87 |530
1987-88 |631
1988-89 |695
1989-90 |864
1990-91 |836
1991-92 |1,032
Notes:
1. Figures exclude changes in advance
payments on rolling stock orders.
2. Figures for 1979 and 1980 exclude ships,
harbours, hovercraft and hotels.
Column 689
Deadweight
(million tonnes)
|Mid-1979|End-1992
---------------------------------------------
United Kingdom<1> |44.3 |6.4
Denmark |8.9 |6.8
France |20.6 |5.6
Germany<2> |13.5 |6.3
Greece |63.3 |46.8
Italy |19.0 |10.1
Netherlands |8.2 |4.6
Spain |13.6 |4.0
Cyprus |3.4 |36.7
Malta |0.1 |18.5
Norway |39.1 |37.7
Poland |4.8 |4.1
Romania |2.5 |4.2
Sweden |7.4 |3.4
Yugoslavia |3.6 |n/a
Column 690
On future developments, the December Transport Council endorsed our presidency paper on positive measures to improve the competitiveness of Community fleets, which have all reduced in size. Particular points stressed were that there should be flexibility on manning requirements and that the Commission should bring forward proposals for a number of non-financial measures, including the enforcement of maritime safety standards to avoid Community shipowners being at a competitive disadvantage with sub-standard shipping from third countries.During our presidency, we argued strongly for the curbing of state aids in discussion with the Commission and in the Council of Ministers, and the Commission's recent White Paper, "The Future Development of the Common Transport Policy", confirmed that state aids should not be permitted to distort competition and compromise the establishment of a level playing field. We shall continue to press for the adoption of measures to even out the terms of competition within the Community.
Kent Coast Line
Mr. Gale : To ask the Secretary of State for Transport (1) what assurances he has been given that an order for new rolling stock to serve the Kent coast line, based upon existing available funding and the Networker design, would be commercially viable ; and if he will make a statement ;
(2) what discussions he has had with British Rail concerning its failure to place an order for new Networker trains to serve the Kent coast line.
Mr. Freeman : My right hon. Friend and I have asked British Rail to tell me by Easter what rolling stock it wishes to lease using the £150 million leasing facility announced at the time of the autumn statement, and for which routes. New Networker rolling stock for Kent coast is one of the options. We expect BR to inform us of the commercial implications of its chosen option.
Driving Licences
Mr. Cryer : To ask the Secretary of State for Transport if applications for driving licences for people age 70 years or over are divulged to commercial organisations.
Mr. Kenneth Carlisle : No personal information about applicants of any age is given to commercial organisations.
Greater Manchester Buses Ltd.
Mr. Lewis : To ask the Secretary of State for Transport following his direction under section 61 of the Transport Act 1985 to Greater Manchester Buses Ltd., what
Column 691
assessment he has made of whether the EC acquired rights directive will apply, upon disposal, in respect of pension rights.Mr. Freeman : Pension rights are being fully discussed between my Department, the Department of the Environment and the Greater Manchester passenger transport authority.
Mr. Lewis : To ask the Secretary of State for Transport what protection of employees' pension rights he intends to introduce on the disposal of Greater Manchester Buses Ltd. following his direction under section 61 of the Transport Act 1985.
Mr. Freeman : I am having constructive talks with the Greater Manchester passenger transport authority.
Twyford Down (Private Detectives)
Mr. Denham : To ask the Secretary of State for Transport what guidance was issued by his Department to Bray's Detective Agency (Southampton) Ltd. in relation to their investigation of protesters at Twyford Down, Hampshire ; what monitoring of the activities of the firm was carried out by his Department to ensure such guidance was adhered to ; and if he will place a copy of such guidance in the Library.
Mr. Kenneth Carlisle [holding answer 22 February 1993] : Bray's Detective Agency (Southampton) Ltd. was appointed to serve papers on people who have trespassed on departmental land and to photograph trespassers. It was not considered necessary to issue guidance for the execution of these tasks.
Mr. Denham : To ask the Secretary of State for Transport what consultations took place between his Department and its contractors on the Twyford Down project over the hiring of a private security firm and over the deployment of this firm on 9 December 1992.
Mr. Kenneth Carlisle [holding answer 22 February 1993] : Site security is the responsibility of the contractor. In this case, the contractors consulted the Department before employing an experienced security firm to protect the site from intrusion by trespassers.
Mr. Denham : To ask the Secretary of State for Transport when he intends to reply to the letter sent to him on 21 January by the hon. Member for Southampton, Itchen, regarding the use of private detective agencies and private security guards at Twyford Down, Hampshire.
Mr. Kenneth Carlisle [holding answer 22 February 1993] : Soon.
Mr. Denham : To ask the Secretary of State for Transport what guidelines have been established by his Department (a) for the use of private security firms on his Department's land and (b) for use when considering whether to employ private detectives ; and if he will place a copy of the guidelines in the Library.
Mr. Kenneth Carlisle [holding answer 22 February 1993] : Private security firms and detectives are used infrequently. No guidelines have been established.
Mr. Denham : To ask the Secretary of State for Transport (1) what is the total sum of moneys paid to
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Bray's Detective Agency (Southampton) Ltd. by his Department since February 1992 ; and if he will place a copy of its contract of employment in the Library ;(2) what was the method of appointment used in the selection of Bray's Detective Agency (Southampton) Ltd.; and what criteria were used in the selection.
Mr. Kenneth Carlisle [holding answer 22 February 1993] : The agency was appointed on the recommendation of the engineer. No formal contract was made. To date, the agency has been paid approximately £7,000.
Mr. Cryer : To ask the Secretary of State for Transport what considerations underlay his decisions to forbid Group 4 Security Ltd. from making a statement to the television programme "Dispatches" in relation to its employment by his Department at Twyford Down ; and if he will make a statement.
Mr. Kenneth Carlisle : I took the view that as overall responsibility for the M3 scheme rests with my right hon. Friend, I should issue a single statement to the makers of the "Dispatches" television programme about the action taken to progress this scheme.
Submarine Monitoring Scheme
Dr. Godman : To ask the Secretary of State for Transport if he will make a statement on the policy of HM Coastguard in respect of the current operation of the subfacts scheme.
Mr. Norris [holding answer 23 February 1993] : HM coastguard supports the agreement between the Ministry of Defence and the fishing industry that information on the areas where dived submarines are active should be provided for the benefit of fishermen. Recent discussions have been held with Ministry of Defence officials to consider the options available for transmitting subfacts information. Proposals are awaited from the MOD as to the best way forward.
Vehicle Testing Centres
Mr. Betts : To ask the Secretary of State for Transport when he expects to be reporting on the results of his consultation on the future of vehicle testing centres.
Mr. Kenneth Carlisle : I refer the hon. Member to the answer I gave to the hon. Member for Dundee, East (Mr. McAllion) on 10 February, Official Report) , column 659 .
Unleaded Fuel
Ms. Harman : To ask the Secretary of State for Transport what are the latest figures for (a) how many and (b) what proportion of (i) new cars use unleaded fuel and (ii) car owners have converted their cars to unleaded fuel, and what proportion this is of cars that can be converted, (iii) new cars have a catalytic converter and (iv) car owners have a catalytic converter fitted.
Mr. Kenneth Carlisle : All new petrol-engined cars manufactured since 1 October 1990 have had to be capable of running on unleaded petrol, deliveries of which in November 1992 amounted to 49.2 per cent. of the total figure of 1,925,987 tonnes for deliveries of motor spirit. The number and proportion of older cars adapted to use unleaded is unknown. Since 31 December 1992 virtually all
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new petrol-engined cars have been fitted with catalysts ; and of the total car fleet of some 22.9 million vehicles, the proportion fitted with these devices is currently about 5 per cent.A1 Motorway
Mr. William O'Brien : To ask the Secretary of State for Transport, pursuant to his answer of 19 February, Official Report , column 385, if he will publish a breakdown of the operational costs of the proposed A1 motorway between Redhouse and Hook Moor.
Mr. Kenneth Carlisle : The first year operational costs of £80 million in respect of the announced preferred route for this scheme is broken down as follows :
Costs |£ millions
--------------------------------------------------------------------------
(i) time |25.136
(ii) fuel |12.106
(iii) other vehicle costs such as depreciation and
maintenance |41.948
(iv) routine maintenance such as sign replacement,
drainage renovation and condition inspections |0.314
|----
Total |<1>79.504
<1>(rounded to £80 million).
Company Cars
Ms. Harman : To ask the Secretary of State for Transport how many cars were registered for ownership in a company's name in each year since 1973-74 ; and what estimate he has of the number of people who had such cars in each year.
Mr. Kenneth Carlisle : Information on the registration of cars under a company name is not available before 1976. For the years since 1976 the figures for Great Britain are as shown in the table.
Cars registered for the first time
|(000) |Percentage of all
|cars registered in
|year
----------------------------------------------------------------------------
1976 |500 |39
1977 |580 |44
1978 |660 |42
1979 |770 |45
1980 |630 |42
1981 |600 |40
1982 |640 |40
1983 |710 |39
1984 |740 |42
1985 |830 |45
1986 |860 |46
1987 |970 |48
1988 |1,130 |51
1989 |1,180 |51
1990 |1,050 |52
1991 |830 |52
1992 |830 |52
Column 694
Regular statistics on the number of employees in the United Kingdom taxed on the private use of a company car were not collected by the Inland Revenue before 1978-79. The available figures from 1978-79 onwards are shown in the table.
|(000)
--------------------
1978-79 |550
1980-81 |650
1981-82 |800
1983-84 |850
1985-86 |1,050
1987-88 |1,550
1988-89 |1,750
1989-90 |1,850
1990-91 |1,950
1991-92 |1,900
1992-93 |1,850
These figures do
not include
self-employed
people who use
their cars for
business purposes.
It is estimated
that in recent
years there have
been some 2 million
people in this
category.
TRADE AND INDUSTRY
Leyland DAF
Mr. Bell : To ask the President of the Board of Trade if it is his intention to intervene on behalf of Leyland DAF.
Mr. Sainsbury : The European Commission recently approved assistance by the Italian Government to Fiat for capital investment in an assisted area of Italy. There is currently no equivalent proposal in respect of Leyland DAF.
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