Previous Section Home Page

Housing Benefit

Mr. Win Griffiths: To ask the Secretary of State for Social Security, if he will make it his policy to ensure that housing authorities should not pay housing benefit until


Column 937

they are satisfied that the property is fit for human habitation.

Mr. Roger Evans: Local authorities already have considerable powers to ensure that dwellings meet standards of fitness for human habitation. Housing benefit is available to help people who have a legal liability to pay rent for their accommodation.

TREASURY

Special Advisers

Mr. Vaz : To ask the Chancellor of the Exchequer, pursuant to his answer to the hon. Member for Darlington (Mr. Milburn) of 1 December, Official Report , column 803 , if he will make a statement regarding his Department's expenditure on special advisers in each of the last three financial years and for the financial year 1979 80.

Mr. Aitken: Salaries for special advisers are negotiated individually in relation to their previous earnings and are confidential. The total pay bill for all the Government's special advisers in November 1994 was £1.29 million at 1994 95 prices . The figures for the other years requested--in 1994 95 prices --are as follows:


As at          |Paybill<1>           

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

June 1993      |1.40                 

September 1992 |1.36                 

September 1991 |1.2                  

May 1979       |0.53                 

<1> These figures have been          

calculated by annualising the        

salaries in payment at the dates     

shown. They do not include earnings  

related national insurance           

contributions and other personnel    

overheads.                           

<2> Calculated using the gross       

domestic product deflator.           

Banking Ombudsman

Mr. Tracey: To ask the Chancellor of the Exchequer if he will review the terms of reference of the banking ombudsman in dealing with complaints by non-customer third parties; and if he will make a statement.

Mr. Nelson: The office of the banking ombudsman is not a statutory one. The ombudsman is appointed not by the Government, but by an independent council which is responsible for his terms of reference.

Child Benefit

Mr. Wicks: To ask the Chancellor of the Exchequer if he will estimate by how much child benefit would rise if the savings from the abolition of the married couples allowance and additional personal allowance were added to child benefit.

Sir George Young: Married couples allowances and the additional personal allowance have not been abolished. If these allowances were abolished in 1995 96 and the savings added to child benefit, the child benefit rate could be increased by £6.30. This assumes no compensating increases in the income support and family credit child allowances.


Column 938

Gross Domestic Product

Mr. Wigley: To ask the Chancellor of the Exchequer what was (a) gross domestic product per head of population in pounds sterling at constant prices and (b) column (a) expressed as a percentage of the United Kingdom average in (i) Wales, (ii) south-east England, (iii) the United Kingdom and (iv) each of the member states of the OECD, for the last three years for which comparable figures are available.

Mr. Nelson: Constant price GDP per head in the United Kingdom is published in table 2.4 of "Economic Trends" and the Central Statistical Office databank, which can be accessed through the Library. Constant price GDP per head is not available for the regions of the United Kingdom nor is comparative data for the member states of the OECD.

Herr Walter Laup

Mr. Cousins: To ask the Chancellor of the Exchequer what has been the involvement of the United Kingdom Government or its agencies in supplying evidence or statements in the trial of Herr Walter Laup, a former employee of British Aerospace, in Germany.

Mr. Heathcoate-Amory: Customs provided evidence in the form of a statement to German Customs for use in the trial of Herr Walter Laup, a director of Hechler and Koch, Obendorf, Germany, but the German authorities did not use this evidence during the trial.

Manufacturing

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will show, for manufacturing for each year since 1970, the net operating surplus as a percentage of net average capital employed based on historic costs.

Mr. Nelson: Estimates for net average capital employed by manufacturing companies are not readily available on a historic cost basis. The equivalent series calculated on a current cost basis is published in CSO "First Release" 94(205)--Profitability of United Kingdom companies: rates of return of United Kingdom industrial and commercial companies". Data are available between 1970 and 1991 on a historic cost basis, but these are based on the old definition of manufacturing and do not include any revised information since they were last calculated in September 1992.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer on what non-oil export and import prices his calculation in paragraph 3.51 of the "Financial Statement and Budget Report" of a 2 per cent. fall in terms of trade was based; and if he will list comparable figures for manufactures, finished manufactures and semi-manufactures, together with the increase in the terms of trade for finished manufactures since the second half of 1973, the fourth quarter of 1976, the second quarter of 1979 and the fourth quarter of 1986.

Mr. Nelson: The figures for trade prices quoted in paragraph 3.51 of the FSBR are based on average value indices. Comparable figures for manufactures, semi-manufactures and finished manufactures can be calculated from the value and volume numbers available on the CSO database, which can be accessed through the House of Commons Library.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will break down his 1993 figures and


Column 939

forecasts in paragraph 3.51 of the "Financial Statement and Budget Report" for EEC and non-EEC countries showing (a) the increase in non-oil import and export prices and corresponding change in the terms of trade, (b) comparable figures for semi -manufactures, finished manufactures and manufactures and (c) figures on the same basis as (a) and (b) for the second half of 1973, the fourth quarter of 1976, the second quarter of 1979 and the fourth quarter of 1986.

Mr. Nelson: Average value indices by commodity are available separately for trade with other EC countries and non-EC countries from 1988. These can be calculated from the value and volume figures available on the CSO database, which can be accessed through the House of Commons Library. Forecasts are not made separately for trade with other EC countries and non-EC countries.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what was the level of volume for imports and exports in respect of (a) manufactures, (b) finished manufactures and (c) semi-manufactures with (i) the EEC and (ii) other countries for (1) the last three months for which figures are available and (2) the equivalent months in 1992; and what is his assessment of the growth of the market for imports in those markets.

Mr. Nelson: Figures for export and import volumes by commodity for trade with other EC countries and with non-EC countries are available from the Central Statistical Office database, which can be accessed through the House of Commons Library. The Government's assessment of trade performance, published in chapter 3 of the "Financial Statement and Budget Report", took into account all relevant factors, including market growth.

Prices

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what has been the weighted average increase in the price of goods in the retail price of non-food goods since August 1992; and how much of the increase has been due to the fall in the exchange rate.

Mr. Nelson: The information requested is not available as there is no single definition of goods in the retail prices index.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what estimate he made in December 1992 of the effect of the fall in the exchange rate on retail prices after (a) one and (b) two years.

Mr. Nelson: The Government published an assessment of economic prospects, including the outlook for retail prices, in the November 1992 Autumn Statement. The depreciation of sterling that followed the suspension of the United Kingdom's membership of the exchange rate mechanism was one of the many factors taken into account in this forecast.

Sterling (Velocity of Circulation)

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer (1) if he will lift the annual increase in velocity of circulation of sterling M4 between 1986 and 1991 and since 1991 together with his estimate of the effect on output and employment (i) in the whole economy and (ii) in manufacturing;

(2) what was the change in velocity of circulation of sterling M0 at an annual rate between 1986 and 1989 and since 1989; and what is his estimate of the effect on


Column 940

output and employment (a) in the whole economy and (b) in manufacturing.

Mr. Nelson: Data on the velocity of circulation of M0 and M4 is published in "Financial Statistics", table 3.1B. Data on output and employment are published in "Economic Trends", tables 2, 15 and 21. If shifts in velocity reflect changes in willingness to hold money, it is not clear that they would have any implications for output and employment.

Exchange Rates

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will make a statement on the present level of the exchange rate; and what is his assessment of its effects on competitiveness.

Mr. Nelson: Movements in the exchange rate are considered as part of the general assessment of monetary conditions in setting monetary policy. The Government recognise the value of a stable exchange rate but do not set target rates. The United Kingdom is very competitive, as demonstrated by our strong export performance; in the third quarter of 1994 export volumes- -excluding oil and erratics--were up 14 per cent. on a year earlier.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what criteria are used by the Government in assessing whether the exchange rate is correctly valued.

Mr. Nelson: The Government do not have a target rate for sterling. Movements in the exchange rate are considered as part of the general assessment of monetary conditions in setting monetary policy.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what has been the change in the exchange rate of (a) pound sterling and (b) the lira against the ecu and non-ecu currencies since August 1992; and what has been the change in (i) the United Kingdom non-oil bal ance of trade and (ii) the Italian visible balance of trade in the first half of the current year with the EEC and non-EEC countries.

Mr. Nelson: Exchange rate data can be found in the CSO publication "Financial Statistics".

The United Kingdom's non-oil trade deficit with other EU member states widened by some £300 million in the first half of 1994 compared to the same period a year before; while the trade deficit with countries outside the EU narrowed by £600 million over this period. However, the improvement in the third quarter of 1994 has been marked: the deficit with other EU countries narrowed by around £500 million, compared with the second quarter of 1994; and the deficit with non-EU countries narrowed by some £600 million. Italy's visible trade surplus with other EU countries was largely unchanged between the first halves of 1993 and 1994, but increased by £2.5 billion on trade with non-EU members.

Executive Search Agencies

Mr. Donohoe: To ask the Chancellor of the Exchequer what use his Department has made of executive search agencies in filling vacancies within his Department and executive agencies administered by his Department during the last year; and how much these services have cost his Department.

Mr. Nelson: Her Majesty's Treasury has not made use of executive search agencies during the last 12 months.


Column 941

Departmental Telephone Calls

Mr. Donohoe: To ask the Chancellor of the Exchequer how much has been spent on telephone charges and how many telephone calls have been made by his Department for each of the last five years.

Mr. Nelson: Departmental telephone charges within the Treasury for the past five years are:

1989 90: £798,243

1990 91: £740,185

1991 92: £721,751

1992 93: £628,599

1993 94: £662,310

Details of the number of calls made per year are not held centrally.

Italian Imports and Exports

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what has been the change since 1992 in the dollar value of Italian imports and exports of goods expressed as a percentage difference from the United Kingdom figures to the United Kingdom for the latest three months for which like figures are available; and what has been the corresponding change in the exchange rate against the ecu, the deutschmark and the dollar respectively.

Mr. Nelson: United Kingdom exports to Italy, expressed as a proportion of Italian exports to the United Kingdom, have risen by around 6 percentage points, from 1992Q3 to 1994Q3. Over the same period sterling has depreciated by some 9.5 per cent. against the ecu, 15.5 per cent. against the deutschmark, and 19.5 per cent. against the United States dollar.

Interest Rates

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what is the Government's assessment of the economic role of interest rates.

Mr. Nelson: It is the role of monetary policy to deliver low inflation. As monetary policy influences inflation with a lag, interest rate decisions are based on an assessment of the prospects for underlying inflation in one to two years' time.

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer to what extent he expects the rises in interest rates in the current year will benefit the economy.

Mr. Nelson: My right hon. Friend's decisions this year to increase interest rates will help to ensure that inflation is kept under control and the current healthy recovery is sustained.

EU Membership

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer, if he will publish his recent assessment of the advantages and inconveniences of EU membership.

Mr. Nelson: No. I have nothing to add to the replies I gave to the hon. Member on 17 March, Official Report , column 822, and on the 30 June, Official Report, column 680 , the reply my right hon. Friend the Prime Minister gave on 18 May, Official Report, column 470, the reply my hon. Friend the Paymaster General gave on 25 November, Official Report , column 468, and the reply my right hon. Friend the Member for Eddisbury (Mr. Goodlad), the Minister of State for Foreign and


Column 942

Commonwealth Affairs gave on 29 November, Official Report, column 583.

Tobacco and Alcohol

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what assessment he has made of the effect of the abolition of frontier checks on the recording of imports of (a) alcoholic drinks and (b) tobacco in (i) 1993 and (ii) this year to date.

Mr. Heathcoat-Amory: Since the abolition of frontier checks for the import of goods from European Community countries on 1 January 1993, import statistics on alcoholic drinks and tobacco have been captured through the Intrastat system. In December 1993 Her Majesty's Customs and Excise and the Central Statistical Office commenced a joint review of the Intrastat system and the results were published in the August edition of "Economic Trends". This showed that the system was generally functioning well. The system for recording imports of these goods from outside the EC has not changed.

Energy-Saving Products (VAT)

Mr. Robert Ainsworth: To ask the Chancellor of the Exchequer what representations have been made to him regarding VAT rates on energy-saving products.

Mr. Heathcoat-Amory: Treasury Ministers and Customs and Excise receive representations about the VAT treatment of a wide variety of goods and services. No record of the number of such representations specifically in respect of energy-saving products is available, but they are relatively few and infrequent.

Mr. Robert Ainsworth: To ask the Chancellor of the Exchequer what would be the cost to the Treasury of reducing VAT on energy-saving products to 8 per cent.

Mr. Heathcoat-Amory: The information on which such an estimate of revenue effect would be based is not available.

Nuclear Waste

Mr. Martyn Jones: To ask the Chancellor of the Exchequer what assessment he has made of the effect on the national economy of delaying the Nirex repository project for nuclear waste for 50 years.

Mr. Aitken: As part of the review of radioactive waste management policy, the Government carried out an assessment of whether there is an economic case for delaying developing of the deep repository for radioactive waste being undertaken by UK Nirex Ltd. The results of this assessment are set out in the consultation document "Review of Radioactive Waste Management Policy Preliminary Conclusions" published by my right hon. Friend the Secretary of State for the Environment on 5 August. A copy has been placed in the Library of the House.

Living Standards

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what measures he has used to define the standard of living.

Mr. Nelson: A wide range of statistics illustrating aspects of the standard of living are published in "Social Trends", including household disposable income, real


Column 943

take-home pay, GDP per head, housing standards and access to consumer durables.

Central Bank

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer what assessment he has made of the benefits to the United Kingdom of the existence of a central bank.

Mr. Nelson: The Treasury and Civil Service Select Committee--first report, Session 1993 94--reported recently on the role of the Bank of England. The Government's response to the report was published on 13 April 1994.

Mortgage Tax Relief

Mr. Burden: To ask the Chancellor of the Exchequer what has been the reduction in income to the Exchequer, to date, from the changes in the 1993 Budget which extended mortgage tax relief to loans taken from non-British lenders.

Sir George Young [holding answer 16 December 1994]: Negligible to date, since the first tax year to which this provision applies is the current year. No estimate can be made of the longer-term cost. But it is likely to be slight: the main effect of the change is on non-residents buying United Kingdom property for letting rather than on mortgage tax relief for owner-occupiers. In the latter case, relief on loans by non-United Kingdom lenders would already, in general, have been available under pre-existing law.

Mr. Burden: To ask the Chancellor of the Exchequer what is the reduction in income to the Exchequer from the changes in the Budget which allow people with a mortgage on an overseas property rented out all year to offset, against income tax, the interest paid on the loan.

Sir George Young [holding answer 16 December 1994]: This measure, to bring the treatment of income from the letting of properties overseas more into line with


Column 944

that of letting United Kingdom properties, is likely to have a negligible effect on Exchequer receipts.

Taxation

Mr. Andrew Smith: To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Peckham (Ms Harman) of 19 January 1994, Official Report, column 635--42 , take account of changes he is making in the Budget, and to provide latest estimates of the burden of direct and indirect taxes for 1993 94, 1994 95, 1995 96 and 1996 97, including figures for the effect of the council tax.

Sir George Young: Real household disposable income per head has risen by nearly a half since 1979. Tax increases taking effect over the next year will cost all households on average about £2.30 a week. The impact on pensioners should be, on average, neutral. After taking account of these tax changes, real personal disposable income is still expected to rise by 1.5 per cent. next year. This should mean that households will on average be about £5 a week better off after tax and inflation.

The tables show revised estimates of tax payments in 1993 94, 1994 95 and 1995 96. These figures relate to hypothetical households assumed to have particular characteristics and do not represent the effect of the tax system on the population as a whole. For example, less than 1 per cent. of households are one-earner couples with two children and income close to male average earnings.

Changes in the figures shown in the tables for different years mainly reflect assumed growth in average earnings and should not be taken as the impact of Budget measures. Real take-home pay at average earnings for all the family types in the table is now 40 per cent. higher--over £80 a week--than in 1978 79.

Tax payments in 1994 95 and 1995 96 are based on illustrative assumptions for growth in earnings and take account of revised Budget measures. Tax payments in 1996 97 will depend on decisions in the November 1995 Budget and on what happens to earnings and prices. Estimates of council tax payments in 1993 94 will not be available until analysis of the 1993 family expenditure survey is complete.


Column 943


Income tax, National Insurance and indirect taxes at multiples of average earnings 1993-94                                                                                                                                                              

                                                         Percentage of                                                                                                                                                                                  

                                                        ||11average male                                                                                                                                                                                

                                                        ||11earnings                                                                                                                                                                                    

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

                                                        |50             |75             |100            |150            |200            |300            |400            |500            |700            |1,000          |2,000                          

Single                                                                                                                                                                                                                                                  

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |179.55         |269.33         |359.10         |538.65         |718.20         |1,077.30       |1,436.40       |1,795.50       |2,513.70       |3,591.00       |7,182.00                       

Income tax and NICs                                     |38.16          |68.68          |99.21          |152.07         |223.89         |367.53         |511.17         |654.81         |942.09         |1,373.01       |2,809.41                       

Indirect taxes<1>                                       |-              |34.37          |43.86          |64.17          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |103.05         |143.07         |216.24                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |21.3           |25.5           |27.6           |28.2           |31.2           |34.1           |35.6           |36.5           |37.5           |38.2           |39.1                           

Indirect taxes<1>                                       |-              |12.8           |12.2           |11.9           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |38.3           |39.8           |40.1                                                                                                                                           

                                                                                                                                                                                                                                                        

Married no children                                                                                                                                                                                                                                     

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |179.55         |269.33         |359.10         |538.65         |718.20         |1,077.30       |1,436.40       |1,795.50       |2,513.70       |3,591.00       |7,182.00                       

Income tax and NICs                                     |29.89          |60.41          |90.94          |141.31         |210.66         |354.30         |497.94         |641.58         |928.86         |1,359.78       |2,796.18                       

Indirect taxes<1>                                       |-              |35.50          |45.52          |67.37          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |95.91          |136.46         |208.68                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |16.6           |22.4           |25.3           |26.2           |29.3           |32.9           |34.7           |35.7           |37.0           |37.9           |38.9                           

Indirect taxes<1>                                       |-              |13.2           |12.7           |12.5           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |35.6           |38.0           |38.7                                                                                                                                           

Married, two children                                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |179.55         |269.33         |359.10         |538.65         |718.20         |1,077.30       |1,436.40       |1,795.50       |2,513.70       |3,591.00       |7,182.00                       

Income tax and NICs                                     |11.79          |42.31          |72.84          |123.21         |192.56         |336.20         |479.84         |623.48         |910.76         |1,341.68       |2,778.08                       

Indirect taxes<1>                                       |-              |35.15          |44.94          |66.28          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |77.46          |117.78         |189.49                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |6.6            |15.7           |20.3           |22.9           |26.8           |31.2           |33.4           |34.7           |36.2           |37.4           |38.7                           

Indirect taxes<1>                                       |-              |13.1           |12.5           |12.3           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |28.8           |32.8           |35.2                                                                                                                                           

                                                                                                                                                                                                                                                        

Married, two earners, no children: Earnings split 60:40                                                                                                                                                                                                 

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |179.55         |269.33         |359.10         |538.65         |718.20         |1,077.30       |1,436.40       |1,795.50       |2,513.70       |3,591.00       |7,182.00                       

Income tax and NICs                                     |11.11          |37.86          |68.05          |129.10         |189.16         |304.58         |434.55         |578.19         |865.47         |1,296.39       |2,732.79                       

Indirect taxes<1>                                       |-              |41.10          |51.00          |70.68          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |78.96          |119.05         |199.78                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |6.2            |14.1           |19.0           |24.0           |26.3           |28.3           |30.3           |32.2           |34.4           |36.1           |38.1                           

Indirect taxes<1>                                       |-              |15.3           |14.2           |13.1           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |29.3           |33.2           |37.1                                                                                                                                           

<1> Figures for indirect taxes are only shown for a narrow earnings range because the margin of error outside this range is too high to produce even illustrative estimates using the methods outlined in notes 4-6 below. Spending patterns vary       

widely between households with the same income and composition and all figures shown for indirect taxes are very approximate.                                                                                                                           


Income tax, National Insurance and indirect taxes at multiples of average earnings-1994-95                                                                                                                                                              

                                                         Percentage of                                                                                                                                                                                  

                                                        ||11average male                                                                                                                                                                                

                                                        ||11earnings                                                                                                                                                                                    

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

                                                        |50             |75             |100            |150            |200            |300            |400            |500            |700            |1,000          |2,000                          

Single                                                                                                                                                                                                                                                  

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |185.85         |278.78         |371.70         |557.55         |743.40         |1,115.10       |1,486.80       |1,858.50       |2,601.90       |3,717.00       |7,434.00                       

Income tax and NICs                                     |41.04          |73.56          |106.09         |163.71         |238.05         |386.73         |535.41         |684.09         |981.45         |1,427.49       |2,914.29                       

Indirect taxes<1>                                       |-              |36.89          |46.96          |68.35          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |110.45         |153.05         |232.06                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |22.1           |26.4           |28.5           |29.4           |32.0           |34.7           |36.0           |36.8           |37.7           |38.4           |39.2                           

Indirect taxes<1>                                       |-              |13.2           |12.6           |12.3           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |39.6           |41.2           |41.6                                                                                                                                           

                                                                                                                                                                                                                                                        

Married no children                                                                                                                                                                                                                                     

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |185.85         |278.78         |371.70         |557.55         |743.40         |1,115.10       |1,486.80       |1,858.50       |2,601.90       |3,717.00       |7,434.00                       

Income tax and NICs                                     |34.43          |66.95          |99.47          |157.09         |231.43         |380.11         |528.79         |677.47         |974.83         |1,420.87       |2,907.67                       

Indirect taxes<1>                                       |-              |37.81          |48.41          |70.91          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |104.76         |147.88         |228.01                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |18.5           |24.0           |26.8           |28.2           |31.1           |34.1           |35.6           |36.5           |37.5           |38.2           |39.1                           

Indirect taxes<1>                                       |-              |13.6           |13.0           |12.7           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |37.6           |39.8           |40.9                                                                                                                                           

                                                                                                                                                                                                                                                        

Married, two children                                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |185.85         |278.78         |371.70         |557.55         |743.40         |1,115.10       |1,486.80       |1,858.50       |2,601.90       |3,717.00       |7,434.00                       

Income tax and NICs                                     |15.98          |48.50          |81.02          |138.64         |212.98         |361.66         |510.34         |659.02         |956.38         |1,402.42       |2,889.22                       

Indirect taxes<1>                                       |-              |37.52          |47.94          |70.06                                                                                                                                          

                                                                                                                                                                                                                                                        

Total                                                                   |86.02          |128.97         |208.70                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |8.6            |17.4           |21.8           |24.9           |28.7           |32.4           |34.3           |35.5           |36.8           |37.7           |38.9                           

Indirect taxes<1>                                       |-              |13.5           |12.9           |12.6           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |30.9           |34.7           |37.4                                                                                                                                           

                                                                                                                                                                                                                                                        

Married, two earners, no children: Earnings split 60:40                                                                                                                                                                                                 

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |185.85         |278.78         |371.70         |557.55         |743.40         |1,115.10       |1,486.80       |1,858.50       |2,601.90       |3,717.00       |7,434.00                       

Income tax and NICs                                     |13.52          |43.56          |75.47          |140.51         |203.96         |332.20         |469.48         |618.16         |915.52         |1,361.56       |2,848.36                       

Indirect taxes<1>                                       |-              |43.86          |54.37          |75.16          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |87.42          |129.83         |215.67                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |7.3            |15.6           |20.3           |25.2           |27.4           |29.8           |31.6           |33.3           |35.2           |36.6           |38.3                           

Indirect taxes<1>                                       |-              |15.7           |14.6           |13.5           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |31.4           |34.9           |38.7                                                                                                                                           

<1> Figures for indirect taxes are only shown for a narrow earnings range because the margin of error outside this range is too high to produce even illustrative estimates using the methods outlined in notes 4-6 below. Spending patterns vary       

widely between households with the same income and composition and all figures shown for indirect taxes are very approximate.                                                                                                                           


Income tax, National Insurance and indirect taxes at multiples of average earnings 1995-96                                                                                                                                                              

                                                         Percentage of                                                                                                                                                                                  

                                                        ||11average male                                                                                                                                                                                

                                                        ||11earnings                                                                                                                                                                                    

                                                        |50             |75             |100            |150            |200            |300            |400            |500            |700            |1,000          |2,000                          

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

Single                                                                                                                                                                                                                                                  

1995-96 tax system applied in 1995-96                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |43.31          |77.29          |111.28         |172.11         |249.79         |405.15         |560.51         |715.87         |1,026.59       |1,492.67       |3,046.27                       

Indirect taxes<1>                                       |-              |39.29          |50.12          |72.98          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |116.58         |161.39         |245.09                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |22.3           |26.5           |28.6           |29.5           |32.2           |34.8           |36.1           |36.9           |37.8           |38.4           |39.2                           

Indirect taxes<1>                                       |-              |13.5           |12.9           |12.5           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |40.0           |41.6           |42.1                                                                                                                                           

                                                                                                                                                                                                                                                        

Indexed 1978-79 system applied in 1995-96                                                                                                                                                                                                               

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |54.19          |92.55          |129.71         |197.83         |295.41         |551.32         |849.69         |1,172.06       |1,816.80       |2,783.92       |6,007.64                       

                                                                                                                                                                                                                                                        

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |27.9           |31.8           |33.4           |34.0           |38.0           |47.3           |54.7           |60.4           |66.8           |71.7           |77.3                           

                                                                                                                                                                                                                                                        

Married, no children                                                                                                                                                                                                                                    

1995-96 tax system applied in 1995-96                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |38.34          |72.33          |106.31         |167.15         |244.83         |400.19         |555.55         |710.91         |1,021.63       |1,487.71       |3,041.31                       

Indirect taxes<1>                                       |-              |39.80          |51.18          |75.23                                                                                                                                          

                                                                                                                                                                                                                                                        

Total                                                                   |112.13         |157.49         |242.38                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |19.7           |24.8           |27.4           |28.7           |31.5           |34.3           |35.8           |36.6           |37.6           |38.3           |39.2                           

Indirect taxes<1>                                       |-              |13.7           |13.2           |12.9           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |38.5           |40.5           |41.6                                                                                                                                           

                                                                                                                                                                                                                                                        

Indexed 1978-79 system applied in 1995-96                                                                                                                                                                                                               

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |43.60          |81.95          |119.11         |184.99         |277.75         |527.79         |823.03         |1,145.40       |1,790.15       |2,757.26       |5,980.98                       

                                                                                                                                                                                                                                                        

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |22.4           |28.1           |30.7           |31.8           |35.8           |45.3           |53.0           |59.0           |65.8           |71.0           |77.0                           

                                                                                                                                                                                                                                                        

Married, two children                                                                                                                                                                                                                                   

1995-96 tax system applied in 1995-96                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |19.49          |53.48          |87.46          |148.30         |225.98         |381.34         |536.70         |692.06         |1,002.78       |1,468.86       |3,022.46                       

Indirect taxes<1>                                       |-              |39.43          |50.66          |74.38          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |92.91          |138.12         |222.68                                                                                                                                         

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |10.0           |18.4           |22.5           |25.5           |29.1           |32.7           |34.5           |35.6           |36.9           |37.8           |38.9                           

Indirect taxes<1>                                       |-              |13.5           |13.0           |12.8           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |31.9           |35.6           |38.2                                                                                                                                           

Indexed 1978-79 system applied in 1995-96                                                                                                                                                                                                               

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |23.93          |62.28          |99.44          |164.49         |255.50         |503.78         |797.49         |1,119.87       |1,764.61       |2,731.73       |5,955.45                       

                                                                                                                                                                                                                                                        

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |12.3           |21.4           |25.6           |28.2           |32.9           |43.2           |51.3           |57.7           |64.9           |70.3           |76.7                           

                                                                                                                                                                                                                                                        

Married, two earners, no children: Earnings split 60:40                                                                                                                                                                                                 

1995-96 tax system applied in 1995-96                                                                                                                                                                                                                   

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |16.90          |48.31          |81.65          |149.62         |214.98         |349.61         |494.62         |649.98         |960.70         |1,426.78       |2,980.38                       

Indirect taxes<1>                                       |-              |46.29          |57.56          |79.88          |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |94.59          |139.21         |229.50                                                                                                                                         

                                                                                                                                                                                                                                                        

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |8.7            |16.6           |21.0           |25.7           |27.7           |30.0           |31.8           |33.5           |35.3           |36.7           |38.4                           

Indirect taxes<1>                                       |-              |15.9           |14.8           |13.7           |-              |-              |-              |-              |-              |-              |-                              

                                                                                                                                                                                                                                                        

Total                                                                   |32.5           |35.8           |39.4                                                                                                                                           

                                                                                                                                                                                                                                                        

Indexed 1978-79 system applied in 1995-96                                                                                                                                                                                                               

Amounts, £ per week                                                                                                                                                                                                                                     

Gross income                                            |194.20         |291.30         |388.40         |582.60         |776.80         |1,165.20       |1,553.60       |1,942.00       |2,718.80       |3,884.00       |7,768.00                       

Income tax and NICs                                     |24.35          |59.44          |97.79          |174.50         |255.56         |408.26         |605.65         |846.73         |1,410.06       |2,344.12       |5,567.84                       

                                                                                                                                                                                                                                                        

Percentage of earnings                                                                                                                                                                                                                                  

Income tax and NICs                                     |12.5           |20.4           |25.2           |30.0           |32.9           |35.0           |39.0           |43.6           |51.9           |60.4           |71.7                           

<1> Figures for indirect taxes are only shown for a narrow earnings range because the margin of error outside this is too high to produce even illustrative estimates using the methods outlined in notes 4-6 below. Spending patterns vary widely      

between households with the same income and composition and all figures shown for indirect taxes are very approximate.                                                                                                                                  

Notes:                                                                                                                                                                                                                                                  

(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 contribution   

at the contracted-in rate. Child benefit is treated as a negative income tax in order to provide comparability with support given through child tax allowances.                                                                                         

(2) Earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. Estimates of earnings in 1994-95 and 1995-96 are based on earnings growth assumptions of 3" per cent. in 1994-95   

and 4" per cent. in 1995-96.                                                                                                                                                                                                                            

(3) Figures for indirect taxes include estimates of the intermediate taxes on households as well as the impact of taxes on final goods and services. Estimates of the impact of taxes on final goods and services assume that these taxes are fully     

incident on households. Estimates of the impact of intermediate taxes are based on the relation between intermediate production costs and final consumption derived using input-output techniques.                                                      

(4) Estimates for 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 uprated using a similar methodology. All estimates are based on the illustrative assumption that 10 per cent. of disposable income is       

saved.                                                                                                                                                                                                                                                  

(5) These figures do not include estimates of council tax payments. Estimates of council tax burdens in 1993-94 will not be available until analysis of the 1993 Family Expenditure Survey is complete.                                                 

(6) Estimates of indirect taxes are very approximate, even within the range for which figures are shown, because spending patterns vary widely between households with the same composition and income. The margin of error is even higher outside the  

range shown, and even illustrative estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from Family Expenditure Surveys for different years.                                        

SCOTLAND

Flow Country

Mr. Spellar: To ask the Secretary of State for Scotland what assessment his Department has made of the effect on carbon release from peat bogs of continued afforestation in the flow country of northern Scotland.

Sir Hector Monro: Research undertaken by the Forestry Commission indicates that afforestation of areas of deep peat may lead to the net release of up to 2.5 tonnes of carbon per hectare per year.


Column 950

Inner City Regeneration

Mr. David Marshall: To ask the Secretary of State for Scotland what plans he has to increase funding for inner city regeneration projects in Scotland; and if he will make a statement.

Lord James Douglas-Hamilton: Inner city and other urban regeneration projects are supported by a wide range of public expenditure programmes, including the urban programme and those relating to local authorities, the enterprise bodies and Scottish Homes, and my right hon. Friend announced his expenditure plans for these and other programmes on 6 December. We plan to announce


Column 951

shortly the outcome of the review of urban regeneration policy in Scotland, which was launched last year with the publication of the consultation paper, "Progress in Partnership".

Salmon Roe

Mr. Wilson: To ask the Secretary of State for Scotland if he will make a statement on the potential trade in salmon roe and the legal constraints upon it.

Sir Hector Monro: Sales of all salmon roe are prohibited by the terms of section 18 of the Salmon Fisheries (Scotland) Act 1868, which is a conservation measure for wild salmon to discourage interference with gravid fish or spawning redds. My Department is currently considering whether it would be possible to relax this prohibition and permit trade in farmed salmon roe without reducing the protection afforded to wild salmon stock. There is a market for salmon roe both at home and abroad.

Hospital Closures

Mrs. Beckett: To ask the Secretary of State for Scotland how many hospitals have closed since April 1991.

Lord James Douglas Hamilton: Thirty-four hospitals have closed in Scotland since April 1991.

Since that time, however, the number of patients treated in hospital has increased by 14.1 per cent.

Mrs. Beckett: To ask the Secretary of State for Scotland for how many accident and emergency departments there are currently proposals for closure.

Lord James Douglas-Hamilton: Ministerial approval has been given for the accident and emergency departments at Dundee royal infirmary and the Royal infirmary of Edinburgh to close.

Accident and emergency services will transfer to Ninewells hospital from the functionally unsuitable accommodation at Dundee royal infirmary when that hospital closes. In Edinburgh, most of the royal infirmary will close and services, including accident and emergency services, will transfer to the new royal infirmary to be built in the south-east of the city.

I understand that Ayrshire and Arran health board is currently consulting on options for alterations to acute hospital provision. One of the options proposed would involve the transfer of accident and emergency services from Ayr hospital to Crosshouse hospital, Kilmarnock. Ministers look forward to seeing the board's final proposals in due course.

Sheep Annual Premium

Mr. Maclennan: To ask the Secretary of State for Scotland, pursuant to his answer of 5 December, Official Report, column 51, how many outstanding sheep annual premium payments will be made in the week beginning 12 December; when payment will be made in respect of the remainder; if sufficient financial resources are available to make all outstanding sheep annual premium payments in the week beginning 12 December; and if he will make a statement.

Sir Hector Monro: On 9 December the Scottish Office Agriculture and Fisheries Department issued payments totalling £25 million to 3, 560 claimants under the 1994


Column 952

sheep annual premium scheme. In total £50.4 million has now been paid to 12,900 claimants--around 85 per cent. of the total. The remaining claims will be processed as soon as possible and most should be paid in January. Funding is available as soon as claims are cleared for payment.


Next Section

  Home Page