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Mr. Kenneth Clarke : The measures to bring about economic growth and the benefit increases that I was able to announce in my Budget will help pensioners and unemployed people, and not just in Southwark and Bermondsey, but throughout the whole country.
Income Tax
13. Mr. Heppell : To ask the Chancellor of the Exchequer how many people in the east midlands who have previously paid no income tax will now do so as a result of changes announced in the Budget.
Mr. Dorrell : In 1994-95 no one will be brought into income tax as a result of the Budget changes.
Fuel (VAT)
14. Mr. Milligan : To ask the Chancellor of the Exchequer what representations he has received following his measures to help pensioners pay value added tax on fuel.
Sir John Cope : Our decision to add £1.30 a week to the single pension and £1.85 a week to the couples pension by April 1996 to help with fuel bills has been widely welcomed.
26. Mr. Parry : To ask the Chancellor of the Exchequer what is his latest estimate of the amount which will be raised in a full year by the imposition of VAT on fuel.
Sir John Cope : VAT on fuel and power is estimated to raise £2,850 million in 1996-97, the first full year of revenue.
18. Mr. Martyn Jones : To ask the Chancellor of the Exchequer how much revenue will be raised in the 1993-94 tax year by the changes in the value added tax rate on fuel.
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Public Sector Borrowing Requirement
15. Mr. Butterfill : To ask the Chancellor of the Exchequer what is his estimate of the public sector borrowing requirement as a percentage of gross domestic product for each year until 1997-98 ; and what is the equivalent figure for each other EC country.
Mr. Portillo : The public sector borrowing requirement in the United Kingdom is projected to fall steadily to 1 per cent. of GDP by 1997-98. Equivalent projections for each other EC country are not available.
Mortgage Interest Payments
16. Mr. Duncan : To ask the Chancellor of the Exchequer what is his estimate for the reduction in interest payments on an average mortgage since October 1990.
Mr. Nelson : Since October 1990, mortgage rates have been reduced from over 15 per cent. to under 8 per cent., saving a homeowner with an average mortgage £160 a month.
Retail Sales
17. Mr. John Marshall : To ask the Chancellor of the Exchequer if he will make a statement about the level of retail sales.
Mr. Nelson : In the three months to November, retail sales volumes were over 3 per cent. higher than a year earlier and at record levels.
Business Taxes
19. Mr. Hardy : To ask the Chancellor of the Exchequer what total payments have been made in each of the last four years to cover return of advance corporation tax or other taxes on dividends or interests to companies or businesses which are either owned by, or are in the control of, foreign Governments under the sovereign immunity arrangement ; and in which OECD countries the rates are more favourable to businesses.
Mr. Dorrell : Sovereign immunity from taxation is accorded only to foreign sovereigns and Governments ; it does not apply to companies or other separate entities. I regret that I am not clear what information is requested in the second part of the question.
Debt Interest
20. Mr. Jenkin : To ask the Chancellor of the Exchequer what are his estimates of the change in public sector debt interest payments over the next three years as a result of the November Budget ; and what estimate he has made as to the effect of the change on the sustainability of Government finances.
Mr. Portillo : By 1996-97, I estimate that debt interest payments will be £1.2 billion lower as a result of the November Budget. The Budget puts the public finances on a sound and sustainable basis.
National Health Service
21. Mr. Hendry : To ask the Chancellor of the Exchequer what percentage of total public spending is accounted for by spending on the national health service.
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Mr. Portillo : Net NHS expenditure in the United Kingdom is expected to account for 12.5 per cent. of general Government expenditure in 1993-94.
Indirect Taxation
22. Mr. Mike O'Brien : To ask the Chancellor of the Exchequer what estimate he has made of the impact on the average family's tax bill of the Budget changes in indirect taxation.
24. Mr. Ainger : To ask the Chancellor of the Exchequer what estimate he has made of the impact on the average family's tax bill of the Budget changes in indirect taxation.
Sir John Cope : The impact of changes to indirect taxes will depend on the level and pattern of spending by a family and as such any estimates are subject to large margins of error. However, it is estimated that on average the changes in indirect taxation will cost households about 90p per week over the next year relative to indexation.
Value Added Tax
23. Mr. Nigel Griffiths : To ask the Chancellor of the Exchequer what is the latest figure he has for the number of companies registered for value added tax in the United Kingdom ; and what this figure was 12 months ago.
Sir John Cope : The latest available information and that for the 12 months ago is as follows :
Number of companies registered Date |Number ------------------------------- September 1993 |498,750 December 1992 |514,085
27. Mr. Mullin : To ask the Chancellor of the Exchequer how much VAT was paid by an average family on an income of £200 per week on 9 April 1992 ; and how much he estimates they will pay on 9 April 1994.
Sir John Cope : Estimates of indirect tax payments outside the range of three-quarters to one-and-a-half times average earnings are not available. A one-earner couple with two children on three-quarters average earnings--£260.80 a week in 1992-93--paid approximately £13.30 a week in VAT. The equivalent figure for 1994-95, in 1992-93 prices, is estimated to be £14.40 a week.
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Construction Industry
25. Mr. Barron : To ask the Chancellor of the Exchequer what plans he has to compensate the construction industry, following his decision to cut the annual allocation to the Housing Corporation.
Mr. Portillo : The construction industry's main requirements are for continuing low interest rates and increasing economic confidence. My right hon. and learned Friend's Budget offers decisive action to reduce public sector borrowing. My right hon. and learned Friend has also announced several important new potential projects under the private finance initiative which can provide a boost for construction employment.
Tax Increases
Mr. McFall : To ask the Chancellor of the Exchequer by how much he estimates the cumulative tax increases since last March will cost the average family from (a) April 1994 and (b) 1995.
Mr. Dorrell : On average, the main tax related changes will cost households around £5.30 a week from April 1994, and an additional £3.30 a week from April 1995.
Royal Palaces
Mr. Alan Williams : To ask the Chancellor of the Exchequer if tax is applicable in the occupied royal palaces reserved for (a) the Duke and Duchess of Kent, (b) the Duke and Duchess of Gloucester, (c) Princess Alexandra and (d) Prince and Princess Michael of Kent.
Mr. Dorrell : The normal income tax rules apply to living accommodation provided in royal palaces. I am sure the hon. Gentleman will realise that the rules of confidentiality regarding taxpayers' affairs prevent me from commenting on individual cases.
Departmental Offices (Heating Bills)
Mr. Redmond : To ask the Chancellor of the Exchequer if he will list, by location the annual fuel heating bills for each of his Department's offices for the last four years, and for this year to date.
Sir John Cope : The annual fuel heating bills for HM Treasury attributable to the last three years and to date are as follows :
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Building |1990-91 |1991-92 |1992-93 |1993-94 [NL] |£ |£ |£ --------------------------------------------------------------------------- Great George Street |59,900.00|62,494.00|4,846.00 |9,535.00 Alencon Link Basingstoke |6,464,.96|8,877.00 |5,521.00 |3,759.30 Allington Towers |4,414.11
Prior to 1990-91 utilities on the departmental estate were paid direct by Property Services Agency. These figures are not available and could be provided only at disproportionate cost.
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Interest Rates
Mr. Spellar : To ask the Chancellor of the Exchequer what rate of interest the Government are paying to borrow money ; and what has been the rate in each of the last five years.
Mr. Nelson : The Government's borrowing programme involves issuing a number of different liabilities, mainly gilts and National Savings products.
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The coupons payable on gilts are given in table 3.6 of "Financial Statistics", together with the nominal amount of each issue and the cash received. The supplementary statements to the Consolidated Fund and National Loans Fund Accounts give further details on an annual basis. For each stock, they indicate the principal outstanding at the beginning and end of the year, the cash received from borrowing and the discount on each stock, repayments, and the interest paid.A summary measure of the interest rates payable on gilts is provided by the par yields for five, 10 and 20 year gilts in table 13.5 of "Financial Statistics". These show that gilt yields are now at their lowest levels for more than 20 years. The rates on National Savings products are published in the London, Edinburgh and Belfast Gazettes and in press notices at the time of each interest rate change. The rates are also displayed in Post Offices. A back series of the rates on the investment account is published in "Financial Statistics", table 13.9.
Flight Tax
Mr. Wilson : To ask the Chancellor of the Exchequer what arrangements he proposes to ensure that air passengers originating in destinations which do not possess through-check-in facilities will not be double-charged flight tax on journeys of more than one leg.
Sir John Cope : Air passenger duty will be collected from airlines. It is expected that they will charge it to customers when the ticket is sold. Customs and Excise are discussing with the airline industry details of the operation of the duty, including arrangements to ensure that the correct amount of duty is charged for passengers on multi-legged journeys.
Petrol Tax
Mr. Wigley : To ask the Chancellor of the Exchequer if he will now introduce measures to compensate for higher duties on petrol and diesel for those parts of the United Kingdom likely to be hardest hit by such increases of duty.
Gross National Product
Mr. Harry Greenway : To ask the Chancellor of the Exchequer what is the predicted size of the gross domestic product and the gross national product is during the current financial year ; what they were five, 10 and 15 years ago ; and if he will make a statement.
Mr. Portillo : Gross domestic product at current factor cost--1990 prices--was £367 billion in 1978-79, £388 billion in 1983-84, and £470 billion in 1988-89. For the current financial year, 1993-94, it is forecast to be £477 billion.
Gross national product at constant factor cost--1990 prices--was £369 billion in 1978-79, £391 billion in 1983-84, and £475 billion in 1988-89. The Government do not publish a forecast of gross national product.
Value Added Tax
Sir Michael Neubert : To ask the Chancellor of the Exchequer what estimate he makes of the annual revenue which would be forgone as a result of increasing the VAT turnover threshold to £45,000.
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Sir John Cope : The revenue cost of raising the VAT registration threshold to £45,000 is estimated to be of the following order :
1993-94 (part year) |1994-95 (full year)|1995-96 (full year) -------------------------------------------------------------------------------- £5 million |£40 million |£45 million
Tax Avoidance
Mr. Richards : To ask the Chancellor of the Exchequer what is his estimate of the yield from the anti-tax avoidance measures contained in the Budget over the next two years.
Mr. Dorrell : The anti-avoidance measures announced in the Budget will yield an estimated £580 million in 1994-95 and £615 million in 1995-96.
Incomes
Sir John Stanley : To ask the Chancellor of the Exchequer what was the average annual percentage increase or decrease in real disposable income between (a) 1964 and 1970, (b) 1970 and 1974, (c) 1974 and 1979 and (d) 1979 to the latest available year.
Mr. Nelson : Real personal disposable income has increased in each of these periods. The average annual percentage increases are as follows :
Year |Per cent. ------------------------------ 1964-70 |2.0 1970-74 |3.8 1974-79 |2.2 1979-92 |2.5
Public Bodies
Dr. Wright : To ask the Chancellor of the Exchequer which of the appointments made to public bodies by his Department since April 1992 have been advertised.
Mr. Nelson : The post of chief executive of the Royal Mint Management Board was advertised using the Recruitment and Assessment Services Agency in December 1992.
European Union
Sir John Stanley : To ask the Chancellor of the Exchequer if he will list all the heads under which the United Kingdom makes regular public expenditure and tax revenue contributions to the European Union and its institutions.
Sir John Cope : In accordance with the "Own Resources Decision", Cm 419, the United Kingdom's gross contribution to the European Community budget is comprised of :
(a) agriculture and sugar levies ;
(b) customs duties ;
(c) payments on the basis of a harmonized VAT base ;
(d) GNP contributions (the fourth resource).
Agricultural and sugar levies and customs duties are paid to the Commission after the deduction of 10 per cent. for collection costs. The United Kingdom's gross
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contribution is reduced by the abatement arrangements agreed at Fontainebleau in 1984, and set out in the "Own Resources Decision". In addition, the United Kingdom also contributes to the capital of the European investment bank, the European development fund and pays production levies on the import of coal and steel products to the European Coal and Steel Community.Ms Harman : To ask the Chancellor of the Exchequer what is his latest estimate of the total and average income tax liability in 1994-95 ; what these would have been if the 1978-79 regime had been maintained in index-linked form ;
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and if he will give the figures including and excluding national insurance contributions and for men and women separately.Mr. Dorrell : Latest estimates are in the table. For the purposes of the calculations, the 1978-79 regime has been indexed to 1994-95 by reference to the statutory formula and allowing for independent taxation and applied directly to the income base of 1994-95. In practice, retention of the regime, indexed as appropriate, for the intervening years would have led to changes in the income base.
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1994-95
Income tax liability Income tax and National Insurance contribution
[NL] |Total £ billion|Average £ |Total £ billion
------------------------------------------------------------------------------------------------
Men |52.0 |3,480 |66.0 |4,420
Women |18.5 |1,770 |24.5 |2,340
All |70.5 |2,780 |90.5 |3,560
<1>Excluding the National Insurance liability of individuals not liable to income tax.
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1978-79 income tax and National Insurance regimes indexed to 1994-95
Income tax liability Income tax and National Insurance contribution
[NL] |Total £ billion|Average £ |Total £ billion
------------------------------------------------------------------------------------------------
Men |74.5 |4,820 |83.4 |5,400
Women |27.8 |2,450 |32.3 |2,850
All |102.3 |3,820 |115.7 |4,320
<1>Excluding the National Insurance liability of individuals not liable to income tax.
Controlled Foreign Companies
Mr. Burns : To ask the Chancellor of the Exchequer what plans he has, in advance of the publication of the Finance Bill, to publish the changes he proposed in the Budget to the provisions on controlled foreign companies.
Mr. Dorrell : The relevant clause, which is to be included in the forthcoming Finance Bill, is being published today in an Inland Revenue press release. Copies of the clause are being placed in the House of Commons Library.
Air Passenger Duty
Mr. Wallace : To ask the Chancellor of the Exchequer what estimate he has made of revenue to be derived from air passenger duty in the first full financial year in respect of (a) scheduled passenger flights to and from Orkney, (b) scheduled passenger flights to and from Shetland, (c) scheduled passenger flights to and from the western isles and (d) scheduled passenger flights to and from airports operated by Highlands and Islands Airports Ltd.
Sir John Cope [holding answer 15 December 1993] : The total revenue yield from passengers on these routes is expected to be under £2 million.
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Travel Tax
Sir Thomas Arnold : To ask the Chancellor of the Exchequer how he proposes to collect the new travel tax.
Sir John Cope [holding answer 15 December 1993] : Air passenger duty will be collected from airlines on the basis of the number of passengers carried. It is expected that airlines will add the duty to the ticket price paid by passengers when tickets are issued. Airlines will be required to register with Customs and Excise and make returns to account for the duty due. Copies of the document outlining the duty, issued by Customs and Excise at my request on Budget day, have been placed in the Library of the House.
ECOFIN
Sir Teddy Taylor : To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the ECOFIN meeting on 14 December ; and what arrangements have been made to deal with the need for borrowing by the European investment bank.
Mr. Barnes : To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the EC ECOFIN Council of 13 and 14 December indicating the voting record of each member state on each item and where no formal votes were taken.
Mr. Kenneth Clarke : The last ECOFIN under the Belgian presidency was held on 13 December. I represented the United Kingdom.
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The Council adopted a recommendation for broad economic policy guidelines under article 103 of the treaty. The final text was closely modelled on the report from ECOFIN to the European Council agreed on 5 December subject to certain changes to ensure consistency with the European Council conclusions on growth, competitiveness and employment. The text was fully acceptable to me and in line with the policy of the British Government.ECOFIN also conducted the assessment of progress required under article 109e of the treaty with regard to economic and monetary convergence and the implementation of Community law concerning the internal market.
The directive on VAT on second hand goods was agreed. The United Kingdom secured a satisfactory compromise on the treatment of imported works of art. These will be taxed at the equivalent rate of 2.5 per cent. until 30 June 1999. The Council also adopted a number of derogations for member states under the mineral oils structures directive--92/81/EEC.
The Council discussed its remit from the European Council to consider further the financing of trans-European networks. Financing will be on the basis of private sector finance supplemented by funds from within the expenditure ceilings agreed at Edinburgh and loans and guarantees from the European investment bank--EIB--and the European investment fund. It was agreed that there would be further discussions between the presidency, EIB and the Commission in advance of discussion in the Council during the Greek presidency on whether there was a need for any additional sources of finance.
There was some discussion of the Commission's proposal for interest rate subsidies on EIB lending to small and medium-sized enterprises under the Edinburgh lending facility. The presidency stressed the importance of reaching agreement on the text by the end of the year in line with the conclusions of the European Council.
There was also discussion of the Commission's proposals for the harmonised treatment of withholding tax on savings. I reiterated the United Kingdom's objections to the proposal but agreed that work should continue within the Commission and at official level. The presidency heard a statement from the Commission on its proposal for a directive on the taxation of interest and royalties which, in broad terms, would remove source country taxation of cross-border interest and royalty payments between companies. The Commission hopes that work will continue at official level with a view to a further discussion in the Council in the new year. The Council agreed in principle a Commission proposal for balance of payments support for Moldova. The Council emphasised that its actions did not constitute a precedent and would be funded within the existing budgetary ceilings for assistance.
There was little substantive discussion on the Commission's proposal for a carbon/energy tax and the matter was referred back for further consideration at official level. I made it clear that there is no need for further environmental taxes in the United Kingdom to meet our commitments under the Rio convention, and that we were opposed to an EC-wide carbon/energy tax.
ECOFIN Ministers and their EFTA counterparts met to discuss the economic situation against the background of the broad economic policy guidelines and the European Council discussion on growth, competitiveness and employment. There was general agreement on the importance of economic co- operation in Europe.
The Council took no formal votes.
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WALES
Government Car Service
Mr. Alan Williams : To ask the Secretary of State for Wales what was the annual cost to the Department of the car service for Ministers in 1990- 91 ; and how many vehicles were involved. . The Welsh Office has no armoured Daimlers, and no car with a cost price of more than £25,000 contrary to some recent press comment.
Lamb Exports
Mr. Wigley : To ask the Secretary of State for Wales what has been the value of Welsh lamb exports in each of the past five years ; and what plans he has for initiatives to improve export levels in coming years.
Mr. Redwood : Exports of Welsh lamb to Europe in recent years have been as follows :
-
|£ million
------------------------------
1989 |33
1990 |35
1991 |45
1992 |75
1993 |95
The 1989 and 1990 figures are
estimated; that for 1993 is a
forecast.
Welsh Food Promotions Ltd. and its associated body, Welsh Lamb Enterprise, are working closely and successfully with Food From Britain in promoting exports of lamb. New market opportunities are being identified and exploited vigorously. I myself help promote Welsh lamb and other Welsh foods whenever opportunity presents itself.
Severn Bridge (Charges)
Mr. Llwyd : To ask the Secretary of State for Wales what representations he has received regarding the effect of current Severn bridge toll charges and practices on tourism in Wales ; and if he will make a statement.
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