Previous Section Home Page

NHS Trusts

Mr. Gordon Prentice: To ask the Secretary of State for Health if she will list the date of appointment, salary and previous post of each of the chief executives of the NHS trusts in England.

Mr. Malone: The information is not available centrally.

Foetal Material

Mr. Alton: To ask the Secretary of State for Health if she will list all the medicines, vaccines and treatments which have been developed from the cells of aborted foetuses or use foetal material as part of their ingredients.

Mr. Sackville: Foetal cells have been used to generate cell lines subsequently used in the manufacture of rabies, rubella, hepatitis A and polio vaccines.

The polio vaccine mainly used in the United Kingdom however, was not developed or manufactured using foetal material.

We are not aware of any other licensed medicinal products where their manufacture would have involved the use of such material.

Performance-related Pay

Dr. Lynne Jones: To ask the Secretary of State for Health, pursuant to her answer of 1 November, what proportion of the responses she has received have supported the proposal to introduce performance-related pay into the national health service.

Mr. Malone: I will write to the hon. Member.

Market Testing

Mr. Flynn: To ask the Secretary of State for Health what is her current calculation of the costs of preparation for market testing in her Department in terms of (a) payments to consultants and (b) other costs.

Mr. Sackville: For the period 1 April 1992 to 30 September 1993, the Department market tested activities valued at £19 million with annual savings of £3.5 million. The one-off consultancy and other costs for this period amounted to £409,118 and £263,000 respectively.

The value of services market tested in the period 1 October 1993 to 30 September 1994 was £25 million. Related savings are not yet available. The consultancy and other costs for the period to 30 June 1994 - the latest available - were £213,731 and £81,000 respectively.

Pelvic Cancer

Mr. Miller: To ask the Secretary of State for Health, pursuant to her answer of 21 October, Official Report , column 393 , what audit she undertook of those people who were treated for pelvic cancer; and if she will publish the results.

Mr. Sackville: The Department is not undertaking an audit of those people who were treated for pelvic cancer.


Column 1277

The Department commissioned an audit of breast cases because they were all suffering from the same cancer and had similar radiotherapy. Patients who had pelvic radiotherapy had different cancers and underwent different techniques of radiotherapy. It is easier to detect common features between members of the first group than between members of the second. For that reason, we have commenced an audit of women exhibiting adverse effects following breast radiotherapy.

Surveys

Mr. Kirkwood: To ask the Secretary of State for Health, pursuant to her answer of 28 October, Official Report, column 863, if she will place in the Library copies of the hospital league tables--qualitative, patient's charter literature research and hospital league tables qualitative, post publication, surveys.

Mr. Malone: I will write to the hon. Member.

Herbal Medicines

Mr. Hain: To ask the Secretary of State for Health (1) what consultations she undertook with organisations representing consumers and practitioners of herbal medicines prior to drafting the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations;

(2) if she will make a statement on the future availability of herbal medicines; and if she will indicate in particular the effect upon that availability of the implementation of (a) the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations and (b) the implementation of any other European directives which have been agreed, which are being negotiated, or which are expected in the near future;

(3) which sections of the Medicines Acts currently exempt certain herbal medicines from the requirement to obtain a product licence; by which procedure products are exempted; and if she will take steps to ensure that such exemptions are sustained when she brings forward for consideration and implementation (a) the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations and (b) the implementation of any other European directives which have been agreed, which are being negotiated, or which are expected in the near future.

Mr. Sackville: I will write to the hon. Member.

Mr. Treddinnick: To ask the Secretary of State for Health (1) if she will list those herbal products which are currently exempt from the requirement for a product licence under the terms of Medicines Acts and which would become unavailable should the European Community bring forward harmonisation procedures following the acceptance of the provisions of the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations; (2) if she will list those organisations specialising in herbal medicines which were consulted about the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations; and what steps she is taking to ensure that such organisations are routinely consulted on future occasions;


Column 1278

(3) what information she has concerning the number of individuals in the United Kingdom who currently use herbal medicines; what information she has to suggest that there is a serious health risk posed by the use of such medicines; upon what basis she believes legislation in this area is necessary; and if she will make a statement.

Mr. David Nicholson: To ask the Secretary of State for Health (1) what consultations she undertook with right hon. and hon. Members prior to the drafting of the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations; and what steps she will take to ensure that such consultations are undertaken in future;

(2) what information she currently has about the average cost associated with the supply of all necessary information and research data by a manufacturer in connection with an application to the Medicines Control Agency for a product licence; and what assessment she has made of the implications of such expenses for the suppliers of herbal medicines should such products be brought within the scope of the licensing regime either through the implementation of the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations, or subsequent harmonisation moves by the European Community.

(3) what steps she intends to take to guarantee the availability of herbal medicines within the United Kingdom should the European Community bring forward moves towards harmonisation in the availability of such products following the implementation of the proposed Medicines for Human Use (Marketing Authorisations, Pharmacovigilance and Related Matters) Regulations, and the implementation of any other European directives which have been agreed, which are being negotiated, or which are expected in the near future.

Mr. Sackville: I will write to my hon. Friends.

National Blood Authority

Mr. Andrew Smith: To ask the Secretary of State for Health what procedure is being adopted for consideration of the National Blood Authority's reorganisation proposals; when the National Blood Authority will complete its consideration of the responses to the consultation; and when she will consider their recommendations.

Mr. Sackville: The National Blood Authority is undertaking a national consultation on its proposals which ends on 11 November. The results will be carefully considered before decisions are made. The detailed procedure and timescale for assessing the results is under consideration.

Children in Hospital

Mr. Thurnham: To ask the Secretary of State for Health what representations she has received since January 1993 on the "Too Dear to Visit" campaign and the issue of parents visiting their sick children in hospital; how many letters she has received from (a) parents of sick children, (b) professionals, (c) voluntary organisations and (d) hon. Members; and if she will make a statement.

Mr. Sackville: We have received some 98 letters from hon. Members who have enclosed a copy of one prepared by the organisers of the "Too Dear to Visit" campaign


Column 1279

and forwarded by constituents. The organisers have also written directly to the Department. In addition we have received a small number of letters from members of the public in support of the campaign. We have carefully considered these representations in the light of current provisions for parents to visit their children in hospital. There are no plans to extend these arrangements.

TREASURY

Public Appointments

Mrs. Maddock: To ask the Chancellor of the Exchequer what percentage of public appointments made by his Department were held by women at the most recent date for which figures are available.

Mr. Nelson: The Chancellor of the Exchequer has some responsibility for making or approving 97 public appointments, 23 per cent. of which are held by women, as shown in "Public Bodies 1993", including the Royal Mint.

In addition to the above appointments, he also has some responsibility for making or approving a further 229 public appointments which are not shown in "Public Bodies". A total of 17 per cent. of these appointments are currently held by women.

Quangos

Mr. Grocott: To ask the Chancellor of the Exchequer which former hon. Members of this House have been appointed since 1988 by his Department to quasi-autonomous non-governmental organisations; and if he will list, in each case, the title of the post, the salary, the duration of the appointment and the party which each represented as an hon. Member.

Mr. Nelson: Since 1988 the Treasury has appointed two former Members of the House to quasi non-governmental organisations. Lord Stewartby, a Conservative, was appointed to the Securities and Investments board in December 1993 for a period of two years at a salary of £13,500 per annum. Dr. Oonagh McDonald --Labour--was appointed to the Securities and Investments board in December 1993 for a period of three years at a salary of £13,500 per annum.

Airports Customs Officers

Mr. McAllion: To ask the Chancellor of the Exchequer how many United Kingdom airports receiving scheduled flights from abroad do not have permanent, full-time customs staff stationed at the airport.

Mr. Heathcoat-Amory: There are six United Kingdom airports receiving scheduled flights from abroad at which there are no permanent, full-time customs staff stationed.

BSkyB

Mr. Allen: To ask the Chancellor of the Exchequer what tax consequences and payments to public funds accrue from the sale of 10 per cent. of BSkyB shares.


Column 1280

Sir George Young: The normal rules of confidentiality prevent me commenting on the affairs of particular taxpayers.

Public Expenditure

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what proportion of gross national product were representing (a) gross United Kingdom contributions to the European Community, (b) direct expenditure by Government Departments, (c) expenditure by executive next steps agencies, or other self-accounting units within the public sector and (d) Her Majesty's Government grants to local authorities, at the latest available date; and on what value of gross national product these proportions are calculated.

Mr. Aitken: The table shows figures for expenditure as a percentage of gross domestic product for the financial year 1993 94, the latest year for which final outturn figures are available.


V

                                                  |Percentage of GDP                  

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

Gross EC contributions                            |1.3                                

Central government's own expenditure<1>           |28.4                               

Central government grants to local authorities<2> |8.8                                

Notes:                                                                                

<1> Government Departments' and other central Government bodies' expenditure within   

the control total excluding net EC contributions and including cyclical social        

security.                                                                             

<2> Excludes credit approvals.                                                        

The figures are based on a gross domestic product figure of £630 billion. It is the Government's usual practice to use gross domestic product in preference to gross national product when comparing Government expenditure aggregates with total economy expenditure. Separate information on the expenditure by next steps executive agencies is available in individual Departments' annual departmental reports. Information on the expenditure of non-departmental public bodies can be found in the Cabinet Office publication "Public Bodies".

Income Tax

Mr. Kirkwood: To ask the Chancellor of the Exchequer (1) what was the tax take, in each year since 1990 91 of (a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the bottom 70 per cent., (e) the bottom 10 per cent. of taxpayers and (g) all taxpayers;

(2) what was the percentage of total income, in each year since 1990 91, received by (a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the bottom 70 per cent. and (e) the bottom 10 per cent. of taxpayers;

(3) what was (a) the total income, (b) the average income and (c) the earned income, in each year since 1990 91, of (i) the top 1 per cent., (ii) the top 5 per cent., (iii) the top 10 per cent., (iv) the bottom 70 per cent, (v) the bottom 10 per cent. of taxpayers and (vi) in all taxpayers;

(4) what was the percentage of the tax take, in each year since 1990 91, from (a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the bottom 70 per cent. and (e) the bottom 10 per cent. of taxpayers.

Sir George Young: Estimates are given in the table.


                                                       Total earned      Income tax                                           

                                                                         liability                                            

Quantile group of |Total income<1>  |Average income   |income<2>                                                              

taxpayers                                                                                                                     

Per cent.         |£ million        |£                |£ million        |£ million        |Per cent.                          

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

1990-91                                                                                                                       

Top 1             |28,300           |107,800          |21,100           |9,200            |15                                 

Top 5             |68,700           |52,200           |54,400           |18,900           |31                                 

Top 10            |102,800          |39,100           |83,900           |25,400           |42                                 

Bottom 70         |161,400          |8,800            |147,700          |18,700           |31                                 

Bottom 10         |12,100           |4,600            |11,300           |300              |1                                  

All taxpayers     |358,300          |13,600           |316,400          |60,400           |100                                


Column 1281


                                                       Total earned      Income tax                                           

                                                                         liability                                            

Quantile group of |Total income<1>  |Average income   |income<2>                                                              

taxpayers                                                                                                                     

Per cent.         |£ million        |£                |£ million        |£ million        |Per cent.                          

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

1991-92                                                                                                                       

Top 1             |31,200           |120,600          |23,400           |10,400           |16                                 

Top 5             |73,900           |57,100           |60,100           |20,700           |33                                 

Top 10            |109,600          |42,300           |91,800           |27,500           |43                                 

Bottom 70         |166,300          |9,200            |152,700          |19,300           |30                                 

Bottom 10         |12,600           |4,900            |11,300           |300              |1                                  

All taxpayers     |373,800          |14,400           |335,000          |63,500           |100                                


Column 1281


                                                       Total earned      Income tax                                           

                                                                         liability                                            

Quantile group of |Total income<1>  |Average income   |income<2>                                                              

taxpayers                                                                                                                     

Per cent.         |£ million        |£                |£ million        |£ million        |Per cent.                          

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

1992-93                                                                                                                       

Top 1             |29,300           |115,300          |22,900           |9,500            |16                                 

Top 5             |72,000           |56,700           |61,300           |19,800           |33                                 

Top 10            |108,100          |42,600           |93,700           |26,500           |44                                 

Bottom 70         |165,300          |9,300            |153,000          |17,500           |29                                 

Bottom 10         |12,500           |4,900            |11,100           |300              |-                                  

All taxpayers     |373,700          |14,700           |340,800          |60,700           |100                                


Column 1281


                                                       Total earned      Income tax                                           

                                                                         liability                                            

Quantile group of |Total income<1>  |Average income   |income<2>                                                              

taxpayers                                                                                                                     

Per cent.         |£ million        |£                |£ million        |£ million        |Per cent.                          

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

1993-94                                                                                                                       

Top 1             |29,900           |117,600          |24,300           |9,800            |16                                 

Top 5             |73,900           |58,200           |64,800           |20,400           |33                                 

Top 10            |111,300          |43,800           |99,900           |27,500           |44                                 

Bottom 70         |166,900          |9,400            |156,800          |18,000           |29                                 

Bottom 10         |12,200           |4,800            |11,100           |300              |-                                  

All taxpayers     |381,400          |15,000           |354,600          |62,800           |100                                


                                                       Total earned      Income tax                                           

                                                                         liability                                            

Quantile group of |Total income<1>  |Average income   |income<2>                                                              

taxpayers                                                                                                                     

Per cent.         |£ million        |£                |£ million        |£ million        |Per cent.                          

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

1994-95                                                                                                                       

Top 1             |32,000           |124,200          |25,800           |10,800           |15                                 

Top 5             |78,900           |61,200           |68,900           |22,800           |33                                 

Top 10            |118,700          |46,000           |106,200          |30,900           |44                                 

Bottom 70         |173,300          |9,600            |163,000          |19,900           |29                                 

Bottom 10         |12,300           |4,800            |11,200           |300              |-                                  

All taxpayers     |401,000          |15,500           |373,100          |69,700           |100                                

Note:                                                                                                                         

<1> Income subject to tax. Excludes non-taxable income such as certain social security benefits.                              

<2> Income from employment, self-employment and pensions.                                                                     


Column 1283

Spencer Stuart Consultants

Mr. Byers: To ask the Chancellor of the Exchequer how many contracts his Department or Government agencies responsible to his Department have entered into with Spencer Stuart consultants in the last two years.

Mr. Nelson: I regret that I cannot answer substantively before Parliament is prorogued. I will, however, write to the hon. Member.

Departmental Property

Mr. Byers: To ask the Chancellor of the Exchequer what properties are owned or leased by his Department for the use of Ministers; what was the total running cost for each property for the latest year available broken down into (a) furniture and fittings, (b) maintenance, (c) staffing, including the number of butlers, cooks and housekeepers, (d) food and hospitality and (e) other costs; what is the estimated value of each property; and how many times in the latest year the property was stayed in overnight by a Minister.

Mr. Nelson: The Treasury neither owns nor leases buildings for the use of Ministers.

Lloyd's Names

Mr. Hain: To ask the Chancellor of the Exchequer (1) what is the Inland Revenue's estimate of tax relief since 1988 for Lloyd's names; and if he will make a statement;

(2) on what basis tax relief will be given to Lloyd's names for the years of account since 1988; and if he will make a statement.

Sir George Young: Lloyd's names are traders under general law and tax legislation follows this. Accordingly, trading losses incurred by Lloyd's names are eligible for relief on the same lines as those of other traders: Lloyd's trading losses of any year can be set against other tradeable income of the same tax year or of the previous year, or can be carried forward and set against Lloyd's trading profits of later years.

Changes from the 1991 92 year or assessment enabling trading losses to be set against capital gains apply to all traders, including Lloyd's names.

Information on tax relief is not centrally available. Income tax and capital gains tax repaid to Lloyd's underwriters by the underwriters unit of Inland Revenue in each year to 5 April since 1988 89 is shown in the following table. The figures cover refunds of tax made over a range of earlier years, and include any repayment supplement attracted by the tax refunded. For comparison purposes, the table also shows the tax charged on initial assessments made during each year on underwriting profits and gains, including estimated assessments.


Fiscal Year        |Total tax repaid  |Total tax assessed                   

                   |£ million         |£ million                            

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

1988-89            |157.7             |157.3                                

1989-90            |118.2             |308.9                                

1990-91            |91.0              |228.2                                

1991-92            |126.7             |101.8                                

1992-93            |386.6             |10.3                                 

1993-94            |479.1             |3.7                                  

Public Investment Projects

Mr. Betts: To ask the Chancellor of the Exchequer how much private capital has been invested in public investment projects since the 1992 autumn statement.

Sir George Young: Nearly £8 billion by the end of 1994 95, including about £500 million under the private finance initiative.

Bank Accounts

Mr. Madden: To ask the Chancellor of the Exchequer what guidance has been issued to the clearing banks by the Bank of England concerning personal and business bank accounts held by Iraqi nationals resident in the United Kingdom; and if he will make a statement.

Mr. Nelson: The Bank of England issued a notice on 7 August 1990, and supplements on 25 August, 3 September and 13 September 1990, which detailed the administrative arrangements for blocking personal and business accounts held in the United Kingdom by Iraqi nationals. Further guidance is given to individual banks on application to the sanctions emergency unit at the Bank of England.

Copies of the Bank notice and the three supplements are being placed in the Library.

Mortgage Tax Relief

Mr. Ron Davies.: To ask the Chancellor of the Exchequer how many households in Wales receive mortgage tax relief; and at what total cost to the Exchequer.

Sir George Young: It is estimated that 450,000 married couples and single people receive mortgage interest relief in Wales in 1994 95 at a cost to the Exchequer of £130 million. The estimates are based on the regional distribution of mortgages shown by the 1993 family expenditure survey applied to the United Kingdom total estimates for 1994 95.

Black Economy

Mr. Gordon Prentice: To ask the Chancellor of the Exchequer what assessment he has made about the growth in the black economy since 1979.

Sir George Young: It is not possible to make a reliable assessment.

VAT

Mr. Bowden: To ask the Chancellor of the Exchequer what the increase in inflation for the year to September 1994 would have been if VAT on fuel at 8 per cent. had not been introduced in April.

Mr. Nelson: The extension of VAT to domestic fuel and power is estimated to have added just under 0.4 per cent. to the retail prices index since April 1994.

Market Testing

Mr. Flynn: To ask the Chancellor of the Exchequer what is his current calculation of the costs of preparation for market testing in his Department in terms of (a) payments to consultants and (b) other costs.

Mr. Nelson: Expenditure to date by the Treasury on payments to external consultants for work related to


Column 1285

market testing amounts to £141,675. Other costs of £59,400 have also been incurred.

Loans (Taxation)

Mr. Carrington: To ask the Chancellor of the Exchequer how the Inland Revenue taxes loans which replace cheap or interest-free loans provided to employees by their employer.

Sir George Young: Cheap or interest-free loans provided by employers are taxable benefits in kind. At present under, the technical rules introduced in 1976 to prevent avoidance, any loan which replaces a cheap or interest-free loan provided by an employer is also taxable, unless the replacement loan qualifies for exemption.

Some employers would like to stop providing cheap loans to staff. They want to do so by transferring their staff's existing loans to subsidiaries of commercial lenders set up for the purpose of giving replacement loans in such circumstances. However, the replacement loans from the subsidiary companies, which are on arm's length terms, could still be taxable. They would not be exempt as "commercial loans" because the subsidiary companies do not lend to the public. In order to remove a possible obstacle to the provision of replacement loans to employees, we intend to propose legislation in the next Finance Bill. This would replace the rule which makes all replacement loans potentially taxable by new rules which focus more precisely on the potential for tax avoidance. The new rules would allow the subsidiary companies to provide replacement loans on arm's length terms without the replacement loans being taxable. We intend that this provision should apply from 6 April 1995.

The Inland Revenue is making available today a draft clause which would implement these changes. A copy of the draft clause will be placed in the Library of the House of Commons.

Tax Statistics

Mr. Betts: To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 25 February 1993, Official Report, columns 682-84 , on the tax liabilities of taxpayers in different income bands, giving figures for 1994 95 and estimates for 1995 96 based on the assumption of statutory indexation and including measures already announced in the 1993 budgets.

Sir George Young [holding answer 2 November 1994]: Latest estimates of the average reductions in income tax and national insurance liabilities in 1994 95 and 1995 96 assuming statutory indexation and inclusion of measures already announced, compared with liabilities under an indexed 1987 88 regime are in the table. An equivalent assumption has been made about indexation of the national insurance regime for 1995 96. The 1987 88 income tax regime has been indexed to 1994 95 and 1995 96 levels by reference to the statutory formula and allowing for the effect of the independent taxation of husbands and wives.


Column 1286


                      Average reduction                                             

                      or increase (-) in                                            

                      1994-95 compared                                              

                      with 1987-88                                                  

                      indexed regime                                                

                      (£)                                                           

                                          |Income tax and                           

Range of individuals                      |National                                 

income in 1994-95    |Income tax          |Insurance                                

(£)                                                                                 

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

Under 5,000          |40                  |60                                       

5,000-10,000         |150                 |200                                      

10,000-15,000        |200                 |270                                      

15,000-20,000        |250                 |280                                      

20,000-25,000        |330                 |290                                      

25,000-30,000        |370                 |290                                      

30,000-40,000        |-70                 |-160                                     

40,000-50,000        |140                 |50                                       

50,000-70,000        |1,460               |1,360                                    

70,000-80,000        |4,040               |3,930                                    

Over 80,000          |17,800              |17,700                                   

Average              |330                 |350                                      


                      Average reduction                                             

                      or increase (-) in                                            

                      1995-96 compared                                              

                      with 1987-88                                                  

                      indexed regime                                                

                      (£)                                                           

                                          |Income tax and                           

Range of individuals                      |National                                 

income in 1995-96    |Income tax          |Insurance                                

(£)                                                                                 

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

Under 5,000          |30                  |50                                       

5,000-10,000         |70                  |110                                      

10,000-15,000        |10                  |80                                       

15,000-20,000        |-60                 |-40                                      

20,000-25,000        |-90                 |-120                                     

25,000-30,000        |-120                |-180                                     

30,000-40,000        |-640                |-710                                     

40,000-50,000        |-620                |-700                                     

50,000-70,000        |620                 |530                                      

70,000-80,000        |3,120               |3,020                                    

Over 80,000          |16,900              |16,800                                   

Average              |110                 |130                                      

For the purpose of the calculations the indexed regime of 1987-88 has been applied  

directly to the income bases of 1994-95 and 1995-96. In practice, retention of the  

1987-88 regime, indexed as appropriate, for the intervening years would have led to 

changes in the income base.                                                         

Mr. Betts: To ask the Chancellor of the Exchequer if he will add to the table in his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 3 November 1993, Official Report , columns 245-56 , estimating the tax liabilities in 1995 96 for the given income ranges showing the effects of all tax changes including those announced in 1993 budgets and including both indirect taxation and intermediate taxation.

Sir George Young [holding answer October 1994]: The impact of indirect and intermediate taxation depends on individual spending patterns and the effect of indirect and intermediate taxes on prices.

Mr. Betts: To ask the Chancellor of the Exchequer if he will update the information provided in the Treasury's tax ready reckoner and tax reliefs on the basis of the September retail prices index.

Sir George Young [holding answer 2 November 1994]: Updated information for tables 2 to 6, and part of table 7, is as follows. Figures for the rest of table 7, as well as tables 8 to 10, have not been revised as these are not dependent on the September retail prices index.


Column 1287


Table 2 Income tax                                                

                                        £                         

                                       |1994-95 |1995-96          

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

Personal allowance                     |3,445   |3,525            

                                                                  

Personal allowance (age 65-74)         |4,200   |4,300            

                                                                  

Personal allowance (age 75 and over)   |4,370   |4,470            

                                                                  

Married couple's allowance             |1,720   |<1>1,720         

                                                                  

Married couple's allowance (age 65-74) |2,665   |<1>2,995         

                                                                  

Married couple's allowance (age 75 and                            

  over)                                |2,705   |<1>3,035         

                                                                  

Additional personal<2> and widow's                                

  bereavement allowance                |1,720   |<1>1,720         

                                                                  

Aged income limit<3>                   |14,200  |14,600           

                                                                  

Lower rate band                        |3,000   |3,100            

                                                                  

Basic rate limit<4>                    |23,700  |24,300           

Notes:                                                            

<1> The values of these allowances were announced in the November 

1993 Budget. The additional £330 for taxpayers aged 65 or over    

ensures that they lose no more from the restriction of the        

married couple's allowance to 15 per cent. than taxpayers aged    

under 65.                                                         

<2> Primarily for single parents.                                 

<3> If the total income, less allowable deductions, of a taxpayer 

aged 65 or over exceeds this limit, the age-related allowances    

are reduced by £1 for each £2 of income over the limit until the  

basic levels of the personal and married couple's allowances are  

reached.                                                          

<4> Higher rate income tax is payable on income (less those       

allowances and reliefs that are allowed at the higher rate) in    

excess of the basic rate limit.                                   


Table 3 Inheritance tax           

           £'000                  

          |1994-95|1995-96        

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

Threshold |150    |154            


Table 4 Capital gains tax                     

                       £                      

                      |1994-95|1995-96        

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

Annual exempt amount:                         

individuals           |5,800  |6,000          

trustees              |2,900  |3,000          


Table 5 Cost of indexation for 1995-96                    

                                   £ million              

                                  |1995-96|1996-97        

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

Indexation of income tax                                  

allowances, lower rate band and                           

basic rate limit1                 |700    |920            

of which:                                                 

increases in allowances           |450    |560            

increase in the lower rate band2  |80     |100            

increase in the basic rate limit2 |170    |260            

Indexation of inheritance tax                             

threshold                         |15     |25             

Indexation of capital gains tax                           

annual exempt amount              |-      |2              

1 Cost includes the consequential effects of capital      

gains tax, but excludes the cost of changes in the        

married couple's allowance and related allowances as      

these allowances were announced in the November 1993      

Budget.                                                   

2 Additional cost after previous change has been          

introduced.                                               


Table 6 Direct effects of illustrative changes in income tax 

                                      £ million              

                                      cost/yield             

                                     |1995-96|1996-97        

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

Rates                                                        

Change lower rate by 1p2             |3770   |3650           

Change basic rate by 1p              |1,700  |2,100          

Change higher rate by 1p             |310    |520            

Allowances                                                   

Change personal allowance £100       |490    |63             

Change age-related personal                                  

allowance by £1004                   |45     |60             

Change married couple's allowance                            

by £1005                             |120    |150            

Change age-related married                                   

couple's allowances by £1004         |11     |14             

Change aged income limit by £500     |6      |11             

Change all personal allowances by                            

1 per cent.6                         |190    |240            

Change all personal allowances by                            

10 per cent.6                        |1,850  |2,400          

Change married couple's and                                  

related allowances by 1 per cent.6   |25     |30             

Change married couple's and                                  

related allowances by 10 per cent.6  |240    |310            

                                                             

Lower rate band                                              

Increase lower rate band by 10 per                           

cent.6                               |250    |320            

Basic rate limit                                             

Change basic rate limit by 1 per                             

cent.6                               |65     |95             

Change basic rate limit by 10 per                            

cent.6                                                       

increase (cost)                      |590    |870            

decrease (yield)                     |740    |1,050          

                                                             

Allowances, lower rate band and                              

basic rate limit                                             

Change all main allowances, lower                            

rate band and basic rate limit by 1                          

per cent.6                           |300    |400            

Change all main allowances, lower                            

rate band and basic rate limit by 10                         

per cent.6:                                                  

increase (cost)                      |2,900  |3,900          

decrease (yield)                     |3,200  |4,250          

1 The estimates are rounded. The extent of rounding reflects 

the desire to avoid undue compounding of its effects when    

numbers are pro-rated, rather than the accuracy of the       

estimates. The figures include consequential effects on the  

yield of capital gains tax. Changes are assumed to take      

effect from April 1995.                                      

2 Including the effects of the changes on receipts of ACT    

and on consequential liability to mainstream corporation     

tax.                                                         

3 In last year's Ready Reckoner it was assumed that a change 

in the lower rate would affect the married couple's          

allowance and related allowances and mortgage interest       

relief. These allowances and mortgage interest relief have   

since been restricted to 15 per cent. with effect from April 

1995 and will not consequentially reduce the effects of a    

change in the lower rate.                                    

4 Allowances for those aged 65-74 and aged 75 and over.      

5 Figures include revenue effects of changing the additional 

personal allowance and widow's bereavement allowance by      

£100.                                                        

6 Percentage changes are calculated with reference to        

1994-95 levels, except for the married couple's allowance    

and related allowances, where they are calculated with       

reference to the 1995-96 levels announced in the November    

1993 Budget.                                                 

#TCW94110368

:

Table 7 Direct effects of illustrative changes in other   

direct taxes1                                             

                                   £ million              

                                   cost/yield             

                                  |1995-96|1996-97        

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

Capital gains tax                                         

Increase annual exempt amount by                          

£500 for individuals and £250 for                         

trustees                          |-      |6              

                                                          

Inheritance tax                                           

Change rate by 1 percentage point |16     |33             

Increase threshold by £5,000      |17     |33             

1 The estimated revenue effects of the changes on         

receipts are rounded. The extent of rounding reflects the 

desire to avoid undue compounding of its effects when     

numbers are pro-rated, rather than the accuracy of the    

estimates. The figures include consequential effects on   

the yield of capital gains tax. Changes are assumed to    

take effect from April 1995.                              

Table file CW941103.068 not available

Mr. Betts: To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 1 November 1993, Official Report, column 20, to provide similar estimates of the burden of direct and indirect taxes for 1995 96 based on the assumption of statutory indexation and including measures already announced in the 1993 budgets.

Sir George Young [holding answer 2 November 1994]: The burden of direct and indirect taxes for 1995 96 will depend on the levels of earnings in that year. The impact of pre-announced Budget measures averaged over all households will be about £3 a week in 1995 96.

Mr. Betts: To ask the Chancellor of the Exchequer if he will update the answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 3 November 1993, Official Report, column 254, to include estimates for taxing child benefit for 1995 96 based on the assumption of statutory indexation and measures already announced in the 1993 budgets; and if he will include estimates for the effect on revenues if child benefits was taxed at the higher rate only.

Sir George Young [holding answer 2 November 1994]: Were child benefit to be taxed on the assumption given the yield would be:


                               Yield in a full                             

                               year (£ million)                            

                              |1994-95       |1995-96                      

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

Child benefit taxed as:                                                    

Father's or    |-All taxpayers|1,200         |1,300                        

lone mothers   |-40 per cent                                               

income         |taxpayers only|300           |300                          

                                                                           

Mother's or    |-All taxpayers|650           |650                          

lone father's  |-40 per cent.                                              

income         |taxpayers only|40            |40                           

The estimates for 1995-96 are based on the assumption that child benefit   

will be increased in line with the September retail prices index.          

Duties

Mr. Betts: To ask the Chancellor of the Exchequer what would be the impact on the retail prices index of a (a) 3 per cent., (b) 5 per cent. and (c) 10 per cent. increase in duties on (i) beer and cider, (ii) wine, (iii) spirits, (iv) tobacco, (v) petrol, (vi) diesel and (vii) vehicle excise duty.


Column 1290

Mr. Heatcoat-Amory [holding answer 2 November 1994]: The table shows the impact on the RPI, excluding mortgage interest payments of various duty increases.


             |3 per cent. |5 per cent. |10 per cent.             

             |Non-indexed |Non-indexed |Non-indexed              

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

Beer and                                                         

Cider        |0.02        |0.04        |0.08                     

Wine         |0.02        |0.03        |0.06                     

Spirits      |0.02        |0.03        |0.07                     

Tobacco      |0.07        |0.12        |0.24                     

Petrol       |0.07        |0.12        |0.23                     

Diesel       |0.01        |0.01        |0.02                     

VED          |0.02        |0.04        |0.08                     

Value Added Tax

Mr. Betts: To ask the Chancellor of the Exchequer what would be the effect on Treasury revenue in 1995 96 and in a full year of extending value added tax at (a) 8 per cent. (b) 17.5 per cent. to all those zero-rated, giving figures separately for each item.

Mr. Heathcoat-Amory [holding answer 2 November 1994]: The Treasury publication "Tax Ready Reckoner and Tax Reliefs" shows the expected cost of zero rating items currently zero-rated in 1994 95. It is possible to derive an estimated revenue gain from taxing these items at both 8 per cent. and 17.5 per cent. These figures make no allowance for behavioural changes.


                                                £ million                 

                                               |8 per   |17.5 per         

                                               |cent.   |cent.            

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

Food                                           |3,270   |7,150            

Construction of new dwellings                  |890     |1,950            

Domestic Passenger Transport                   |525     |1,150            

International Passenger Transport              |525     |1,150            

Books, newspapers and magazines                |525     |1,150            

Children's clothing                            |275     |600              

Water and sewerage services                    |320     |700              

Drugs and medicines on prescription            |230     |500              

Supplies to charities                          |90      |200              

Ships and aircraft above a certain size        |205     |450              

Vehicles and other supplies to disabled people |70      |150              

Economic Developments

Mr. Denham: To ask the Chancellor of the Exchequer if he will press the International Monetary Fund board of directors to release the document, entitled "Recent Economic Developments".

Mr. Nelson [holding answer 2 November 1994]: The IMF executive board decided on 11 July 1994 that, subject to the consent of the member concerned, "Recent Economic Developments" documents should be published. Since that date there have been no "Recent Economic Developments" documents on the United Kingdom.

Public Sector Borrowing Requirements

Mr. Betts: To ask the Chancellor of the Exchequer what assessment he has made of the reasons for the difference between the forecast public sector borrowing requirement for 1994 95 contained in table 2.1 of the Treasury's 1994 summer economic forecast and the


Next Section

  Home Page