Home Page

Column 887

Written Answers to Questions

Thursday 17 February 1994

NATIONAL FINANCE

Tax Allowances

Mr. Peter Bottomley : To ask the Chancellor of the Exchequer what studies have been done to assess the effects on relative living standards, work incentives and family life of phasing out married couples' income tax allowance and the additional personal allowance for lone parents.

Mr. Dorrell : No specific studies on this question have been carried out. Although tax changes in 1994 and 1995 will result in a proportionately greater tax burden for married couples and unmarried people with children, they will still pay less tax than other single people with the same incomes.

Business Expansion Scheme

Mr. Battle : To ask the Chancellor of the Exchequer (1) what was the cost in tax relief of each dwelling let under the business expansion scheme ; and what estimates he has made of the amount of capital gains tax which will be lost if and when these are sold ; (2) how many dwellings let under the business expansion scheme were specifically let for the university sector ; and what the proportion of business expansion scheme dwellings are assured exit schemes ; (3) how many new lettings from investments under the business expansion scheme there were in (a) each region and (b) the United Kingdom as a whole ; and what percentage these figures represent of (i) all privately rented property and (ii) all rented property, for each year of its existence.

Mr. Dorrell : The average cost per dwelling of providing BES income tax relief is estimated to be about £17,500 for lettings made between 1988 and 1992. It is not possible to give a reliable estimate of the cost of exempting gains arising from disposals of BES shares from capital gains tax. Any gains arising from the sale of properties owned by BES companies are, of course, subject to corporation tax in the usual way. Information is not available centrally from administrative sources on the number of dwellings let under the BES for the university sector or the proportion of dwellings which are let through assured exit schemes. However, information from independent analysts suggests that of the total amount of investment made through BES assured tenancy public offers about 30 per cent. was invested in accommodation let for academic establishments and about 60 per cent. was in assured exit schemes. Reliable estimates by regions are available for years up to 1991-92. These and preliminary estimates for the United Kingdom total in 1992-93 are shown in the table.


Column 888


New Lettings                                                                             

                                          as a percentage                                

                                          of:                                            

                         |Total number<1>|All privately  |All rented                     

                                         |rented         |rented                         

                                         |property       |property                       

                                         |(per cent.)    |(per cent.)                    

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

1988-89                                                                                  

England:                                                                                 

South-East               |2,200          |0.33           |0.09                           

East Anglia              |300            |0.33           |0.11                           

South-West               |300            |0.14           |0.06                           

West Midlands            |300            |0.22           |0.04                           

East Midlands            |400            |0.29           |0.08                           

Yorkshire and Humberside |400            |0.25           |0.06                           

North-West               |1,100          |0.61           |0.13                           

North                    |200            |0.21           |0.04                           

Wales                    |400            |0.47           |0.11                           

Scotland                 |800            |0.58           |0.07                           

Northern Ireland         |neg            |neg            |neg                            

United Kingdom           |6,400          |0.33           |0.08                           

                                                                                         

1989-90                                                                                  

England:                                                                                 

South-East               |1,200          |0.17           |0.05                           

East Anglia              |100            |0.10           |0.04                           

South-West               |100            |0.05           |0.02                           

West Midlands            |100            |0.07           |0.01                           

East Midlands            |200            |0.14           |0.04                           

Yorkshire and Humberside |400            |0.24           |0.06                           

North-West               |500            |0.27           |0.06                           

North                    |neg            |neg            |neg                            

Wales                    |neg            |neg            |neg                            

Scotland                 |400            |0.30           |0.04                           

Northern Ireland         |100            |0.45           |0.05                           

United Kingdom           |3,100          |0.15           |0.04                           

                                                                                         

1990-91                                                                                  

England:                                                                                 

South-East               |2,500          |0.31           |0.10                           

East Anglia              |1,100          |1.05           |0.40                           

South-West               |500            |0.22           |0.09                           

West Midlands            |100            |0.07           |0.01                           

East Midlands            |400            |0.28           |0.08                           

Yorkshire and Humberside |100            |0.06           |0.01                           

North-West               |500            |0.26           |0.06                           

North                    |neg            |neg            |neg                            

Wales                    |neg            |neg            |neg                            

Scotland                 |100            |0.08           |0.01                           

Northern Ireland         |400            |1.82           |0.20                           

United Kingdom           |5,700          |0.27           |0.07                           

                                                                                         

1991-92                                                                                  

England:                                                                                 

South-East               |4,100          |0.50           |0.17                           

East Anglia              |300            |0.27           |0.11                           

South-West               |1,100          |0.47           |0.20                           

West Midlands            |100            |0.06           |0.01                           

East Midlands            |700            |0.49           |0.14                           

Yorkshire and Humberside |400            |0.22           |0.06                           

North-West               |1,300          |0.65           |0.15                           

North                    |100            |0.10           |0.02                           

Wales                    |500            |0.52           |0.14                           

Scotland                 |100            |0.07           |0.01                           

Northern Ireland         |800            |3.64           |0.41                           

United Kingdom           |9,300          |0.42           |0.12                           

                                                                                         

1992-93                                                                                  

United Kingdom           |24,000         |1.08           |0.30                           

<1> Estimates rounded to nearest 100.                                                    


Column 889

Building Societies

Mr. Robert Ainsworth : To ask the Chancellor of the Exchequer (1) if he will list the building societies that have agreed to allow the building societies ombudsman scheme to consider home income plans cases ;

(2) if he will list those building societies who were involved with home income plans ; and which have refused to agree that such cases can go to the ombudsman scheme.

Mr. Nelson : I understand that the following societies have consented to an extension of the Building Societies Ombudsman's powers to cover complaints or possible complaints related to home income plans :

Bradford and Bingley

Britannia

Chelsea (Capital Access Scheme mortgages on a case by case basis) Cheltenham and Gloucester (including complaints arising out of lending by the former Guardian, Heart of England and Portsmouth Building Societies)

Halifax

Melton Mowbray

National and Provincial

Newcastle

Northern Rock (all complaints arise out of lending by the former Lancastrian Building Society)

Portman (including lending by the former Wessex Building Society) Staffordshire (if Society cannot first resolve complaint itself) Woolwich (all complaints arise out of lending by the former Town and Country Building Society).

The following societies have refused :

Bristol and West

Kent Reliance

Lambeth

National Counties

West Bromwich.

The Leeds has formally refused but is in practice co-operating on a case-by -case basis--this includes all complaints arising out of lending by Sussex County, Eastbourne Mutual or Southdown building societies.

The following societies have not yet made a firm decision : Alliance and Leicester

Birmingham Midshires

Manchester

Nationwide.


Column 890

Business Premises

Sir Terence Higgins : To ask the Chancellor of the Exchequer under what authority district valuers may require those whose business premises are being revalued to produce audited accounts ; for how many years they may be asked to produce these ; within what period they may be asked to provide them ; what sanctions apply in the event of non-production ; and for what purpose such detailed information may be required.

Mr. Nelson : Valuation officers are empowered under paragraph 5 of schedule 9 to the Local Government Finance Act 1988, as amended, to serve a notice on a person, who is the owner or occupier of a hereditament, requesting that person to supply information, specified in the notice, that the officer reasonably believes will assist him on carrying out his statutory functions.

Accounts are asked for where rental information is sparse for the type of property in question. Valuation officers will specify a period sufficient to establish trends, but this would not normally exceed three years.

The Act provides that the information should be supplied within a period of 21 days from the date of service of the notice. There is a fine on summary conviction for failing to do so without reasonable excuse.

The information supplied will be used to establish rental values for those classes of properties in order that valuation officers may fulfil their statutory obligation to compile and maintain rating lists.

North Sea Oil

Mrs. Ewing : To ask the Chancellor of the Exchequer, pursuant to his answer of 1 February, Official Report , columns 607-8, if he will publish a similar table of revenues from North sea oil since 1979-80, based on 1993- 94 prices.

Mr. Dorrell : Revenues raised from North sea oil and gas production by category of tax since 1979-80 at 1993-94 prices have been as follows :


Column 889


£ million at 1993-94 prices                                                                                             

Year            Petroleum      Supplementary  Corporation tax               Royalty        Total                        

               |revenue tax   |petroleum duty                                                                           

                                             |ACT setoff    |Mainstream CT                                              

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

1979-80        |3,526         |-             |192           |423           |1,543         |5,683                        

1980-81        |5,004         |-             |201           |507           |2,060         |7,772                        

1981-82        |4,526         |3,834         |511           |778           |2,643         |12,293                       

1982-83        |5,786         |4,232         |357           |564           |2,884         |13,822                       

1983-84        |10,163        |-             |726           |755           |3,216         |14,860                       

1984-85        |11,537        |-             |2,000         |1,910         |3,900         |19,346                       

1985-86        |9,718         |-             |1,654         |2,791         |3,136         |17,299                       

1986-87        |1,759         |-             |1,673         |2,289         |1,361         |7,082                        

1987-88        |3,228         |-             |957           |867           |1,440         |6,493                        

1988-89        |1,805         |-             |902           |671           |792           |4,170                        

1989-90        |1,293         |-             |610           |305           |708           |2,916                        

1990-91        |980           |-             |413           |551           |689           |2,634                        

1991-92        |-231          |-             |397           |287           |597           |1,049                        

1992-93        |71            |-             |495           |208           |572           |1,347                        

1993-94<1>     |500           |-             |300           |-             |600           |1,400                        

<1>1994-95 Financial Statement and Budget Report estimate.                                                              


Column 891

Tax Changes

Ms Harman : To ask the Chancellor of the Exchequer when the hon. Member for Peckham will receive an answer to the two questions about the effect of the 1995-96 tax changes, tabled for answer on 31 January.

Mr. Dorrell : Today.

Ms Harman : To ask the Chancellor of the Exchequer if he will update his answer of 19 January, Official Report, columns 635-41, to provide similar estimates of the burden of direct and indirect taxes for 1995-96 to take account of


Column 892

the tax changes announced for 1995-96, assuming that other aspects of the tax regime are subject to statutory indexation and that prices rise by the amount specified in the working assumption on page 121 of the "Financial Statement and Budget Report 1994- 95" and assuming earnings growth in 1995-96 is the same as in 1994-95.

Mr. Dorrell [holding answer 31 January 1994] : Estimates of tax payments in 1995-96 on the basis requested are given in the table. The actual tax burden in 1995-96 will depend on decisions taken in the 1994 Budget as well as on changes in prices and earnings.


Column 891


Income tax, national insurance contributions and indirect tax payments at multiples of average earnings, 1995-96<1>                                                                                                                                                    

                        Multiples of                                                                                                                                                                                                                                   

                       ||11average earnings                                                                                                                                                                                                                            

                       |50                 |75                 |100                |150                |200                |300                |400                |500                |700                |1000               |2000                                   

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

Single                                                                                                                                                                                                                                                                 

Indexed 1978-79 tax system applied in 1995-96                                                                                                                                                                                                                          

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |41.8               |73.60              |105.72             |173.64             |270.72             |525.43             |823.33             |1,146.45           |1,792.69           |2,762.04           |5,993.23                               

NICs                   |12.65              |19.98              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05                                  

Income tax + NICs      |54.14              |92.58              |129.77             |197.69             |294.77             |549.48             |847.38             |1,170.50           |1,816.74           |2,786.09           |6,017.28                               

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |21.3               |25.2               |27.2               |29.7               |34.8               |45.0               |52.9               |58.9               |65.8               |70.9               |77.0                                   

NICs                   |6.5                |6.5                |6.2                |4.1                |3.1                |2.1                |1.5                |1.2                |0.9                |0.6                |0.3                                    

Income tax + NICs      |27.8               |31.7               |33.3               |33.9               |37.9               |476.0              |54.4               |60.1               |66.7               |71.6               |77.3                                   

                                                                                                                                                                                                                                                                       

1995-96 tax measures applied in 1995-96                                                                                                                                                                                                                                

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |28.54              |52.87              |77.20              |132.50             |210.36             |366.08             |521.80             |677.52             |988.96             |1,456.12           |3,013.32                               

NICs                   |14.75              |24.48              |34.21              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78                                  

Income tax and NICs    |43.29              |77.35              |111.41             |172.28             |250.14             |405.86             |561.58             |717.30             |1,028.74           |1,495.90           |3,053.10                               

VAT                    |-                  |18.89              |24.84              |37.47              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |22.26              |27.45              |38.43              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |118.50             |163.70             |248.18             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |14.7               |18.1               |19.8               |22.7               |27.0               |31.3               |33.5               |34.8               |36.3               |37.4               |38.7                                   

NICs                   |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.0                |1.5                |1.0                |0.5                                    

Income tax and NICs    |22.2               |26.5               |28.6               |29.5               |32.1               |34.8               |36.1               |36.9               |37.8               |38.4               |39.2                                   

VAT                    |-                  |6.5                |6.4                |6.4                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |7.6                |7.1                |6.6                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |40.6               |42.1               |42.5               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Married, no children                                                                                                                                                                                                                                                   

Indexed 1978-79 tax system applied in 1995-96                                                                                                                                                                                                                          

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |30.76              |62.88              |94.99              |160.64             |252.84             |502.20             |796.36             |1,119.47           |1,765.71           |2,735.07           |5,966.26                               

NICs                   |12.65              |18.98              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05                                  

Income tax + NICs      |43.41              |81.85              |119.04             |184.69             |276.89             |526.25             |820.41             |1,143.52           |1,789.76           |2,759.12           |5,990.31                               

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |15.8               |21.5               |24.4               |27.5               |32.5               |43.0               |51.1               |57.5               |64.8               |70.3               |76.6                                   

NICs                   |6.5                |6.5                |6.2                |4.1                |3.1                |2.1                |1.5                |1.2                |0.9                |0.6                |0.3                                    

Income tax + NICs      |22.3               |28.0               |30.6               |31.6               |35.6               |45.1               |52.7               |58.7               |65.7               |70.9               |76.9                                   

                                                                                                                                                                                                                                                                       

1995-96 tax measures applied in 1995-96                                                                                                                                                                                                                                

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |23.58              |47.91              |72.24              |127.54             |205.40             |361.12             |516.84             |672.56             |984.00             |1,451.16           |3,008.36                               

NICs                   |14.75              |24.48              |34.21              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78                                  

Income tax and NICs    |28.33              |72.39              |106.45             |167.32             |245.18             |400.90             |556.62             |712.34             |1,023.78           |1,490.94           |3,048.14                               

VAT                    |-                  |17.30              |23.72              |37.33              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |24.60              |29.93              |41.12              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |114.29             |160.10             |245.77             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |12.1               |16.4               |18.6               |21.8               |26.4               |30.9               |33.2               |34.6               |36.1               |37.3               |38.6                                   

NICs                   |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.0                |1.5                |1.0                |0.5                                    

Income tax and NICs    |19.7               |24.8               |27.3               |28.7               |31.5               |34.3               |35.7               |36.6               |37.6               |38.3               |39.1                                   

VAT                    |-                  |5.9                |6.1                |6.4                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |8.4                |7.7                |7.0                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |39.1               |41.1               |42.1               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Married, 2 children                                                                                                                                                                                                                                                    

Indexed 1978-79 tax system applied in 1995-96                                                                                                                                                                                                                          

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |10.82              |42.94              |75.06              |139.87             |230.29             |477.85             |770.46             |1,093.58           |1,739.82           |2,709.17           |5,940.36                               

NICs                   |12.65              |18.98              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05              |24.05                                  

Income tax + NICs      |23.48              |61.92              |99.11              |163.92             |254.34             |501.90             |794.51             |1,117.63           |1,763.87           |2,733.22           |5,964.41                               

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |5.6                |14.7               |19.3               |24.0               |29.6               |40.9               |49.5               |56.2               |63.8               |69.6               |76.3                                   

NICs                   |6.5                |6.5                |6.2                |4.1                |3.1                |2.1                |1.5                |1.2                |0.9                |0.6                |0.3                                    

Income tax + NICs      |12.1               |21.2               |25.5               |28.1               |32.7               |43.0               |51.0               |57.4               |64.7               |70.2               |76.6                                   

                                                                                                                                                                                                                                                                       

1995-96 tax measures applied in 1995-96                                                                                                                                                                                                                                

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |4.58               |28.86              |53.19              |108.49             |186.35             |342.07             |497.79             |653.51             |964.95             |1,432.11           |2,989.31                               

NICs                   |14.75              |24.48              |34.21              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78              |39.78                                  

Income tax and NICs    |19.28              |53.34              |87.40              |148.27             |226.13             |381.85             |537.57             |693.29             |1,004.73           |1,471.89           |3,029.09                               

VAT                    |-                  |17.06              |24.40              |39.95                                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |24.62              |28.88              |37.91              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |95.02              |140.68             |226.13             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |2.3                |9.9                |13.7               |18.6               |23.9               |29.3               |32.0               |33.6               |35.4               |36.8               |38.4                                   

NICs                   |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.0                |1.5                |1.0                |0.5                                    

Income tax and NICs    |9.9                |18.3               |22.5               |25.4               |29.0               |32.7               |34.5               |35.6               |36.9               |37.8               |38.9                                   

VAT                    |-                  |5.8                |6.3                |6.8                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |8.4                |7.4                |6.5                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |32.5               |36.2               |38.7               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Married, both working, no children                                                                                                                                                                                                                                     

Indexed 1978-79 tax system applied in 1995-96                                                                                                                                                                                                                          

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |11.45              |40.12              |72.24              |136.48             |211.44             |359.78             |556.04             |796.15             |1,358.40           |2,292.90           |5,524.09                               

NICs                   |12.65              |18.98              |25.30              |37.96              |44.29              |48.10              |48.10              |48.10              |48.10              |48.10              |48.10                                  

Income tax + NICs      |24.10              |59.10              |97.55              |174.43             |255.73             |407.88             |604.14             |844.25             |1,406.50           |2,341.00           |5,572.19                               

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |5.9                |13.7               |18.6               |23.4               |27.2               |30.8               |35.7               |40.9               |49.8               |58.9               |70.9                                   

NICs                   |6.5                |6.5                |6.5                |6.5                |5.7                |4.1                |3.1                |2.5                |1.8                |1.2                |0.6                                    

Income tax + NICs      |12.4               |20.2               |25.1               |29.9               |32.8               |34.9               |38.8               |43.4               |51.6               |60.1               |71.6                                   

                                                                                                                                                                                                                                                                       

1995-96 tax measures applied in 1995-96                                                                                                                                                                                                                                

Amounts, £ per week                                                                                                                                                                                                                                                    

Income tax             |6.55               |28.36              |52.12              |100.79             |149.45             |270.93             |415.76             |571.48             |882.92             |1,350.08           |2,907.28                               

NICs                   |10.03              |19.76              |29.49              |48.96              |66.20              |79.56              |79.56              |79.56              |79.56              |79.56              |79.56                                  

Income tax and NICs    |16.57              |48.12              |81.61              |149.74             |215.65             |350.49             |495.32             |651.04             |962.48             |1,429.64           |2,986.84                               

VAT                    |-                  |19.57              |26.60              |40.54              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |28.97              |33.59              |42.73              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |96.66              |141.80             |233.01             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                       

Percentage of earnings                                                                                                                                                                                                                                                 

Income tax             |3.4                |9.7                |13.4               |17.3               |19.2               |23.2               |26.7               |29.4               |32.4               |34.7               |37.3                                   

NICs                   |5.2                |6.8                |7.6                |8.4                |8.5                |6.8                |5.1                |4.1                |2.9                |2.0                |1.0                                    

Income tax and NICs    |8.5                |16.5               |21.0               |25.6               |27.7               |30.0               |31.8               |33.4               |35.3               |36.7               |38.4                                   

VAT                    |-                  |6.7                |6.9                |6.9                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect         |-                  |9.9                |8.6                |7.3                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                       |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                  |-                  |33.1               |36.5               |39.8               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

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 NI 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 allowance, child benefit is treated as a negative income tax for the married couple with two children.                                                 

4. Estimates of income tax and National Insurance Contributions in 1995-96 are based on the illustrative assumption of uprating 1994-95 personal allowances, tax thresholds, NIC Lower and Upper earnings limits and the level of Child Benefit in line with the       

assumption of 3.25 per cent. given in the 1994-95 Financial Statement and Budget Report for the increase in the Retail Price Index in 1995-96.                                                                                                                         

5. Estimates of income tax and National Insurance Contributions in 1995-96 if the 1978-79 tax regime had been indexed for inflation are based on                                                                                                                       

the assumption that the 1978-79 levels of personal allowances, child tax allowances, tax thresholds, NIC Lower and Upper earnings limits and Child Benefit are indexed to 1995-96 in line with the growth in the RPI. The growth in the RPI in years beyond 1993-94    

uses the assumptions for RPI increases for 1994-95 and 1995-96 contained in the 1994-95 Financial Statement and Budget Report.                                                                                                                                         

6. In both cases, average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence and are assumed to be £389.30 per week based on the earnings growth assumption of 4 per cent. for 1995-96.   

7. The estimates of most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey, uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power, Airline Passenger Duty and Insurance    

Premium Tax are based on equations using results from the 1991 and 1992 Family Expenditure Survey respectively, uprated using a similar methodology. These estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.         

8. 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.                              

Ms Harman : To ask the Chancellor of the Exchequer if he will update his answer of 19 January, Official Report, columns 653-41 and, on the same basis as his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 22 April 1993, Official Report, columns 176-78, provide similar estimates of the burden of direct and indirect taxes


Column 896

that would take effect in 1994-95 if the tax rates announced for 1995-96 and contained in the "Financial Statement and Budget Report 1994-95", applied in 1994-95.

Mr. Dorrell [holding answer 31 January 1994] : Figures illustrating the hypothetical tax burdens in 1995-96 if the measures announced for 1995-96 applied in 1994-95 are given in the table. The actual burden of tax in 1995-96 will depend on decisions taken in the 1994 Budget as well as on changes in prices and earnings.


Column 895


Income tax, national insurance contributions and indirect tax payments at multiples of average earnings, 1994-95                                                                                                                                                                   

                                    Multiples of                                                                                                                                                                                                                                   

                                   ||11average earnings                                                                                                                                                                                                                            

                                   |50                 |75                 |100                |150                |200                |300                |400                |500                |700                |1000               |2000                                   

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

Single                                                                                                                                                                                                                                                                             

Indexed 1978-79 tax system applied in 1994-95                                                                                                                                                                                                                                      

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |39.70              |70.58              |101.46             |166.53             |259.26             |503.22             |788.90             |1,099.57           |1,720.91           |2,652.91           |5,759.60                               

NICs                               |12.16              |18.25              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40                                  

Income tax + NICs                  |51.87              |88.83              |124.86             |189.93             |282.66             |526.62             |812.30             |1,122.97           |1,744.31           |2,676.31           |5,783.00                               

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |21.2               |25.1               |27.1               |29.7               |34.6               |44.8               |52.7               |58.8               |65.7               |70.9               |76.9                                   

NICs                               |6.5                |6.5                |6.3                |4.2                |3.1                |2.1                |1.6                |1.3                |0.9                |0.6                |0.3                                    

Income tax + NICs                  |27.7               |31.6               |33.4               |33.8               |37.8               |46.9               |54.3               |60.0               |66.6               |71.5               |77.3                                   

                                                                                                                                                                                                                                                                                   

1995-96 tax measures applied in 1994-95                                                                                                                                                                                                                                            

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |27.34              |50.73              |74.13              |126.83             |201.69             |351.41             |501.13             |650.85             |950.29             |1,399.45           |2,896.65                               

NICs                               |14.16              |23.51              |32.87              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44                                  

Income tax and NICs                |41.50              |74.25              |107.00             |165.27             |240.13             |389.85             |539.57             |689.29             |988.73             |1,437.89           |2,935.09                               

VAT                                |-                  |18.12              |23.85              |35.97              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |21.40              |26.31              |36.74              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |113.76             |157.16             |237.98             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |14.6               |18.1               |19.8               |22.6               |26.9               |31.3               |33.5               |34.8               |36.3               |37.4               |38.7                                   

NICs                               |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.1                |1.5                |1.0                |0.5                                    

Income tax and NICs                |22.2               |26.4               |28.6               |29.4               |32.1               |34.7               |36.0               |36.8               |37.7               |38.4               |39.2                                   

VAT                                |-                  |6.5                |6.4                |6.4                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |7.6                |7.0                |6.5                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |40.5               |42.0               |42.4               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Married, no children                                                                                                                                                                                                                                                               

Indexed 1978-79 tax system applied in 1994-95                                                                                                                                                                                                                                      

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |29.36              |60.24              |91.12              |154.00             |242.02             |481.13             |762.88             |1,073.55           |1,694.89           |2,626.89           |5,733.58                               

NICs                               |12.16              |18.25              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40                                  

Income tax + NICs                  |41.52              |78.49              |114.52             |177.40             |265.42             |504.53             |786.28             |1,096.95           |1,718.29           |2,650.29           |5,756.98                               

                                                                                                                                                                                                                                                                                   

Percentage of gross earnings                                                                                                                                                                                                                                                       

Income tax                         |15.7               |21.5               |24.3               |27.4               |32.3               |42.8               |51.0               |57.4               |64.7               |70.2               |76.6                                   

NICs                               |6.5                |6.5                |6.3                |4.2                |3.1                |2.1                |1.6                |1.3                |0.9                |0.6                |0.3                                    

Income tax + NICs                  |22.2               |28.0               |30.6               |31.6               |35.5               |44.9               |52.5               |58.6               |65.6               |70.8               |76.9                                   

                                                                                                                                                                                                                                                                                   

1995-96 tax measures applied in 1994-95                                                                                                                                                                                                                                            

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |22.38              |45.77              |69.17              |121.87             |196.73             |346.45             |496.17             |645.89             |945.89             |1,394.49           |2,891.69                               

NICs                               |14.16              |23.51              |32.87              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44                                  

Income tax and NICs                |36.53              |69.29              |102.04             |160.31             |235.17             |384.89             |534.61             |684.33             |983.77             |1,432.93           |2,930.13                               

VAT                                |-                  |16.48              |22.64              |35.73              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |23.71              |28.75              |39.38              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |109.48             |153.42             |235.42             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |12.0               |16.3               |18.5               |21.7               |26.3               |30.9               |33.1               |34.5               |36.1               |37.3               |38.6                                   

NICs                               |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.1                |1.5                |1.0                |0.5                                    

Income tax and NICs                |19.5               |24.7               |27.3               |28.6               |31.4               |34.3               |35.7               |36.5               |37.5               |38.3               |39.1                                   

VAT                                |-                  |5.8                |6.1                |6.3                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |8.5                |7.6                |7.1                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |39.0               |41.0               |41.9               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Married, 2 children                                                                                                                                                                                                                                                                

Indexed 1978-79 tax system applied in 1994-95                                                                                                                                                                                                                                      

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |10.05              |40.93              |71.81              |133.88             |220.17             |457.55             |737.80             |1,048.47           |1,669.81           |2,601.82           |5,708.51                               

NICs                               |12.16              |18.25              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40              |23.40                                  

Income tax + NICs                  |22.22              |59.18              |95.21              |157.28             |243.57             |480.95             |761.20             |1,071.87           |1,693.21           |2,625.22           |5,731.91                               

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |5.4                |14.6               |19.2               |23.8               |29.4               |40.7               |49.3               |56.0               |63.7               |69.5               |76.3                                   

NICs                               |6.5                |6.5                |6.3                |4.2                |3.1                |2.1                |1.6                |1.3                |0.9                |0.6                |0.3                                    

Income tax + NICs                  |11.9               |21.1               |25.4               |28.0               |32.5               |42.8               |50.8               |57.3               |64.6               |70.1               |76.6                                   

                                                                                                                                                                                                                                                                                   

1995-96 tax measures applied in 1994-95                                                                                                                                                                                                                                            

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |3.93               |27.32              |50.72              |103.42             |178.28             |328.00             |477.72             |627.44             |926.88             |1,376.04           |2,873.24                               

NICs                               |14.16              |23.51              |32.87              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44              |38.44                                  

Income tax and NICs                |18.08              |50.84              |83.59              |141.86             |216.72             |366.44             |516.16             |665.88             |965.32             |1,414.48           |2,911.68                               

VAT                                |-                  |16.06              |23.11              |38.06              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |23.79              |27.83              |36.37              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |90.69              |134.52             |216.29             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |2.1                |9.7                |13.5               |18.4               |23.8               |29.2               |31.9               |33.5               |35.4               |36.8               |38.4                                   

NICs                               |7.6                |8.4                |8.8                |6.8                |5.1                |3.4                |2.6                |2.1                |1.5                |1.0                |0.5                                    

Income tax and NICs                |9.7                |18.1               |22.3               |25.3               |28.9               |32.6               |34.5               |35.6               |36.8               |37.8               |38.9                                   

VAT                                |-                  |5.7                |6.2                |6.8                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |8.5                |7.4                |6.5                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |32.3               |35.9               |38.5               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Married, both working, no children                                                                                                                                                                                                                                                 

Indexed 1978-79 tax system applied in 1994-95                                                                                                                                                                                                                                      

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |10.73              |38.18              |69.06              |130.82             |202.92             |344.92             |532.59             |762.48             |1,301.70           |2,199.13           |5,305.82                               

NICs                               |12.16              |18.25              |24.33              |36.49              |42.86              |46.80              |46.80              |46.80              |46.80              |46.80              |46.80                                  

Income tax + NICs                  |22.89              |56.43              |93.39              |167.32             |245.79             |391.72             |579.39             |809.28             |1,348.50           |2,245.93           |5,352.62                               

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |5.7                |13.6               |18.5               |23.3               |27.1               |30.7               |35.6               |40.7               |49.7               |58.8               |70.9                                   

NICs                               |6.5                |6.5                |6.5                |6.5                |5.7                |4.2                |3.1                |2.5                |1.8                |1.3                |0.6                                    

Income tax + NICs                  |12.2               |20.1               |25.0               |29.8               |32.8               |34.9               |38.7               |43.2               |51.5               |60.0               |71.5                                   

                                                                                                                                                                                                                                                                                   

1995-96 tax measures applied in 1994-95                                                                                                                                                                                                                                            

Amounts, £ per week                                                                                                                                                                                                                                                                

Income tax                         |5.97               |26.91              |49.72              |96.51              |143.29             |259.63             |398.42             |548.14             |847.58             |1,296.74           |2,793.94                               

NICs                               |9.60               |18.95              |28.31              |47.03              |63.82              |76.88              |76.88              |76.88              |76.88              |76.88              |76.88                                  

Income tax and NICs                |15.56              |45.86              |78.03              |143.53             |207.12             |336.51             |475.30             |625.02             |924.46             |1,373.62           |2,870.82                               

VAT                                |-                  |18.59              |25.34              |38.75              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |28.05              |32.42              |41.05              |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |92.50              |135.79             |223.33             |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                                                                                                                                                                                                                                                                   

Percentage of earnings                                                                                                                                                                                                                                                             

Income tax                         |3.2                |9.6                |13.3               |17.2               |19.1               |23.1               |26.6               |29.3               |32.3               |34.6               |37.3                                   

NICs                               |5.1                |6.8                |7.6                |8.4                |8.5                |6.8                |5.1                |4.1                |2.9                |2.1                |1.0                                    

Income tax and NICs                |8.3                |16.3               |20.8               |25.6               |27.7               |30.0               |31.7               |33.4               |35.3               |36.7               |38.3                                   

VAT                                |-                  |6.6                |6.8                |6.9                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

Other indirect                     |-                  |10.0               |8.6                |7.3                |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

                                   |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------            |-------                                

Total                              |-                  |33.0               |36.3               |39.8               |-                  |-                  |-                  |-                  |-                  |-                  |-                                      

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 NI 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 allowance, child benefit is treated as a negative income tax for the married couple with two children.                                                             

4. Estimates have been provided on the basis that measures for 1995-96 announced in the 1993 Budgets are implemented in 1994-95, on the basis of 1994-95 levels of earnings and prices and with other tax allowances, thresholds at 1994-95 levels. Estimates have also been       

provided for tax payments on the basis that the 1978-79 tax regime had been indexed for inflation in line with the growth in the RPI and applied to 1994-95 levels of earnings.                                                                                                    

5. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence and are assumed to be £374.30 a week based on the illustrative earnings growth assumption of 4 per cent. in 1994-95.                    

6. The estimates of most indirect taxes are based on equations derived from the 1985 Family Expenditure Survey, uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power are based on equations using results from the 1991   

Family Expenditure Survey, uprated using a similar methodology. These estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved.                                                                                                          

7. 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.                                                      

Mortgage Interest Relief

Ms Harman : To ask the Chancellor of the Exchequer, pursuant to his answer of 19 January, Official Report, columns 635-41, if he will provide estimates for the years 1978-79 to 1992-93 of the burden of direct and indirect taxes on a married couple, two children, and one earner on 100 per cent. of average earnings, including the impact of mortgage interest relief, if the family is assumed to have a mortgage at the average outstanding level in each year, and is paying the average mortgage interest rate.

Mr. Dorrell [holding answer 1 February 1994] : The available information is given in the table.


Tax and mortgage payments                             

                      |1978-79|1992-93|1993-94        

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

(i) Whole economy                                     

Income tax            |11.2   |9.3    |9.1            

NICs                  |7.2    |6.2    |6.2            

                                                      

(ii) Family                                           

Income tax            |14.4   |12.3   |12.4           

NICs                  |6.5    |7.9    |7.9            

Net mortgage payments |11.8   |14.0   |10.8           

Notes:                                                

1. Whole economy income tax and NICs show total tax   

receipts on an accruals basis as a proportion of GDP. 

The figures for NICs include both employers' and      

employee contributions.                               

2. Family 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 are assumed to    

pay Class 1 NI contributions at the contracted-in     

rate.                                                 

3. In order to provide comparability with 1978-79,    

when support for children was given partly through    

child tax allowance, child benefit is treated as a    

deduction from income tax. Both children are assumed  

to be under 11 years old.                             

4. The calculations assume a mortgage of £33,000 in   

1992-93 and 1993-94, and one of £8,400 in 1978-79.    

The figures for 1978-79 and 1992-93 represent broadly 

the same proportion of the average house price as a   

£33,000 mortgage today.                               

5. Average earnings are taken to be the average gross 

weekly earnings of all full-time males on adult rates 

with pay unaffected by absence. Average earnings      

stood at £92.80 per week in 1978-79 and £347.70 in    

1992-93. They are assumed to grow by 3" per cent. in  

1993-94 to £359.90.                                   

Ms Harman : To ask the Chancellor of the Exchequer, pursuant to his answer of 19 January, Official Report , column 635 , if he will (a) provide estimates for the years 1993-94 and 1994-95 of the burden of direct and indirect taxes on a married couple, one earner, two children, on 100


Column 900

per cent. of the average earnings, including the impact of mortgage interest tax relief, assuming that the family has a £35,000 mortgage and that mortgage interest rates are 7.9 per cent. in 1993-94 and 7.8 per cent. in 1994-95 and (b) provide similar estimates for 1995-96 to take account of the tax changes announced for 1995-96, assuming that other aspects of the tax regime are subject to statutory indexation, that prices rise by the amount specified in the working assumption on page 121 of the Financial Statement and Budget report 1994-95, that earnings growth in 1995-96 is the same as in 1994-95 and that the family has a £35,000 mortgage and that mortgage interest rates are 7.8 per cent. in 1995-96.

Mr. Dorrell [holding answer 1 February 1994] : The available information is given in the table.


Tax and mortgage payments                             

                      |1993-94|1994-95|1995-96        

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

(i) Whole economy                                     

Income tax            |9.1    |9.6    |9.9            

NICs                  |6.2    |6.4    |6.3            

                                                      

(ii) Family                                           

Income tax            |12.4   |13.1   |13.7           

NICs                  |7.9    |8.8    |8.8            

Net mortgage payments |11.6   |11.6   |11.8           

Notes to Table:                                       

1. Whole economy income tax and NICs show total tax   

receipts on an accruals basis as a proportion of GDP. 

The figures for NICs include both employers' and      

employee contributions.                               

2. Family tax and mortgage payments show income tax,  

employee NICs and net mortgage payments for a         

one-earner married couple on average earnings with    

two children as a percentage of earnings.             

3. Family 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 are assumed to    

pay Class 1 NI contributions at the contracted-in     

rate.                                                 

4. Child benefit is treated as a deduction from       

income tax.                                           

5. Estimates of family income tax and National        

Insurance Contributions in 1995-96 are based on the   

illustrative assumption of uprating personal          

allowances, tax thresholds, NIC Lower and Upper       

earnings limits and Child Benefit in line with the    

assumption of 3.25 per cent. given in the 1994-95     

Financial Statement and Budget Report for the         

increase in the Retail Price Index in 1995-96.        

6. Mortgage payments are shown net of mortgage        

interest relief.                                      

7. 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 assumed to  

be £359.90 per week in 1993-94, £374.30 in 1994-95    

and £389.30 in 1995-96, based on illustrative         

earnings growth assumptions of 4 per cent. per year   

in 1994-95 and 1995-96.                               


Column 901

Pension Transfers

Mr. Butterfill : To ask the Chancellor of the Exchequer what information the Securities and Investments Board requested from FIMBRA, LAUTRO and IMRO in relation to pension transfers ; what was the basis of the brief given by the Securities and Investments Board to KPMG ; what action was taken by the Securities and Investments Board in investigating pension transfers by the companies directly regulated by the Securities and Investments Board ; what were the terms of reference of the steering committee on pension transfers ; and if he will make a statement.

Mr. Nelson [holding answer 16 February 1994] : KPMG was asked by the Securities and Investments Board to examine in conjunction with FIMBRA, LAUTRO and IMRO the extent of compliance with regulators' requirements in the sale of lump sum pension transfers. I understand that the study was carried out on a representative sample of client files provided by those SROs. It was commissioned as a result of SIB's analysis of compliance by directly regulated firms, which indicated significant levels of non-compliance. SIB published the report on 16 December 1993. It found that, as with SIB's directly regulated firms, a large proportion of files did not contain all the material that they should have contained. SIB has stressed that it remains to be seen how far this finding is symptomatic of unsuitable advice causing financial disadvantage to investors.

A regulators steering group, chaired by the chief executive of SIB, has been charged with examining the extent of the problem and devising preventative and remedial guidelines. An advisory committee of experts, chaired by Sir Douglas Wass, has been set up to advise the SIB board on further work on pension transfers. Full terms of reference of both are set out hereafter.

Pensions Advisory Committee

1. To review the plans and proposals developed by the Regulators' Steering Group in accordance with its terms of reference, with particular regard to their practicability and to the extent to which they address the problems identified ; and

2. To submit to the SIB two reports on the outcome of its review : the first on the proposals of the Steering Group for the development of preventative measures ; and

the second on the full report of the Steering Group on the actions required to provide remedies for any shortcomings in the advice given to clients.

3. It is understood :

(a) that members of the Advisory Board will be free to consult their "constituencies" on an informal and confidential basis during the course of its work, and

(b) that the Advisory Board will be free to publish its reports to the SIB in the event that the body does not accept its advice in whole or in part.

Regulators' Steering Group

(i) To advise on further measures necessary to ensure that future pension business involving transfers or opt outs from occupational pension schemes is conducted in accordance with applicable regulatory standards.

(ii) To develop specifications for an industry review of potential problem cases, and the priorities for tackling the review. (

(iii) To clarify the scale and incidence of detriment to investors.

((iv) To consider what forms of remedy are appropriate in different sets of circumstances.

(v) To plan for co-ordinated regulatory activity where it is necessary.


Column 902

(vi) To foster commitment within the investment and occupational pensions industries and the actuarial profession to the review, and to the resolution of problem cases.

To keep SIB informed of its progress on the above by means of monthly reports, and in particular to report on (i) above by 28 February 1994 and to report on overall progress by 30 June 1994.

HOME DEPARTMENT

Passports

Mr. Gapes : To ask the Secretary of State for the Home Department if he will now arrange for the issue of a full British passport or travel documents to Mrs. Hunwicks, a constituent of the hon. Member for Ilford, South.

Mr. Charles Wardle : Mrs. Hunwicks has not acquired British citizenship and thus does not qualify for a British passport. Any application she may wish to make for a Home Office travel document will be considered on its merits.

Mr. Gapes : To ask the Secretary of State for the Home Department what criteria are applied by officials in the Passport Agency and his Department when deciding whether or not to issue passports to people living in this country for the last 30 years but who were born in the republic of Cyprus (a) before and (b) after it gained its independence.

Mr. Charles Wardle : The Passport Agency issues British passports to those who qualify under the relevant nationality legislation. In the case of people born in Cyprus, this is the Cyprus Act 1960 and the British Nationality (Cyprus) Order 1960.

Mr. Gapes : To ask the Secretary of State for the Home Department why the Passport Agency has refused to issue a full passport to Mrs. Hunwicks, a constituent of the hon. Member for Ilford, South ; and what account was taken of the issue of a British visitor's passport.

Mr. Charles Wardle : Mrs. Hunwicks has not acquired British citizenship and thus does not qualify for a British passport.

Mr. Gapes : To ask the Secretary of State for the Home Department when Mr. and Mrs. Hunwicks, constituents of the hon. Member for Ilford, South, first applied for passports at the Passport Office at Petty France, London ; what reasons they gave for the application ; when Mr. Hunwicks was given his passport ; why Mrs. Hunwicks was refused a passport ; and how many subsequent visits and telephone calls Mr. and Mrs. Hunwicks made to the Passport Office.

Mr. Charles Wardle : Mr. Hunwicks applied for British passports for himself and his wife on 18 January 1994 to enable them to travel to Morocco. A passport for Mr. Hunwicks was issued on 21 January. He was informed that a passport could not be issued to Mrs. Hunwicks as she has not yet acquired British citizenship. Mr. and Mrs. Hunwicks have made three visits to London passport office, and had several telephone conversations, in seeking to clarify this situation.


Column 903

Temazepam

Mr. Waterson : To ask the Secretary of State for the Home Department when he expects to announce his decision on the conclusions reached by his Advisory Council on the Misuse of Drugs regarding the misuse of the hypnotic temazepam.

Mr. Maclean : I am studying the Advisory Council's conclusions in consultation with ministerial colleagues. The consultation process is taking a little longer than at first envisaged, but I hope to reach a decision shortly after Easter.

Assault

Mr. Steinberg : To ask the Secretary of State for the Home Department if he will list by region the available data on the breakdown of assault victims by (i) race and (ii) religion in 1993.

Mr. Maclean : The information requested is not available centrally.

Mr. Steinberg : To ask the Secretary of State for the Home Department if he will list by region the number of female victims of (i) sexual and (ii) physical assaults since 1990 who were assaulted by males against whom they had restraining orders.

Mr. Maclean : The information requested is not available centrally.

Sex Offences

Mr. Nigel Evans : To ask the Secretary of State for the Home Department how many convicted sex offenders have then gone on to offend once again after their release from prison in the last 10 years.

Mr. Maclean : The available information on the re-offending of prisoners is the reconviction rate for a "standard list" offence, as defined in appendix 4 of "Criminal Statistics, England and Wales 1992", within two or four years after discharge from a prison service establishment. The latest statistics are for those discharged in 1987 after completion of a prison sentence for which the principal offence was a sex offence. Of those discharged, 416 or 25 per cent. had been convicted of a further offence within two years and 540 or 32 per cent. within four years. The numbers exclude the reconviction of a small number of discharges whose criminal histories could not be traced.

Fraud

Mr. Redmond : To ask the Secretary of State for the Home Department if he will introduce provisions for minimum custodial sentences linked with the amounts involved in cases of major fraud.

Mr. Maclean : We have no plans to do so.

Sheehy Inquiry

Mr. Redmond : To ask the Secretary of State for the Home Department what assessment he has made as to the effect on the report of the Sheehy inquiry of the members of the inquiry all being men.

Mr. Charles Wardle : None.


Column 904

Public Bodies

Mr. Kilfoyle : To ask the Secretary of State for the Home Department when he will answer the questions from the hon. Member for Liverpool, Walton tabled for answer on 28 January regarding the appointments he makes to public bodies.

Mr. Howard : I have no record of any question tabled by the hon. Member to my Department for answer on 28 January.

The hon. Member has received an answer to all the questions he tabled for answer on 26 January concerning public bodies.

Police Surveillance

Mr. Redmond : To ask the Secretary of State for the Home Department, pursuant to his answer of 13 December, Official Report, column 435, if he will review the position as respects court cases of citizens allowing their houses to be used for surveillance by the police.


Next Section

  Home Page