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Capital Gains
Mr. Denzil Davies: To ask the Chancellor of the Exchequer what would be the total cost in a full year of charging individuals, companies and trusts at the rate of 25 per cent. on their capital gains while increasing the annual gross exemption and the chattels exemption to £10,000 in all cases. [34209]
Mr. Jack: The cost of charging individuals, companies and trusts at the rate of 25 per cent. on their capital gains while increasing the annual exempt amount for individuals to £10,000 and trusts to half this amount is estimated to be £450 million for 1996 97 liabilities, rising to £700 million in a full year in the medium term. It is not possible to estimate the cost of increasing the chattels exemption to £10,000, but this is likely to be very small in comparison with the figures of £450 million or £700 million. Estimates given take account of the likely effect of changes on the volume of disposals in a full year, caused by changes in taxpayers' behaviour.
Inheritance Tax
Mr. Denzil Davies: To ask the Chancellor of the Exchequer what would be the total cost in a full year of increasing the nil band of inheritance tax to £250,000, reducing the 40 per cent. band to 25 per cent. and exempting from tax all lifetime gifts except those made within three years of death. [34208]
Mr. Jack: The full year cost in 1996 97, measured against an indexed base, of increasing the inheritance tax threshold to £250,000, reducing the rate of tax from 40 per cent. to 25 per cent., and exempting from tax all lifetime gifts made more than three years before death is estimated to be just over £1 billion.
Machinery and Plant Investment
Mr. Sheerman: To ask the Chancellor of the Exchequer for which periods in the last 30 years 100 per cent. capital allowances for investment in machinery and plant have been available. [35070]
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Mr. Jack: One hundred per cent. capital allowances were available for expenditure on machinery and plant incurred between 22 March 1972 and 13 March 1984.
One hundred per cent. capital allowances were also available between 27 October 1970 and 21 March 1972 for expenditure on the provision of a new ship or on new non-mobile machinery or plant for use for industrial purposes in a development area or Northern Ireland. The requirement that the machinery or plant had to be used for industrial purposes was removed between 20 July 1971 and 21 March 1972.
One hundred per cent. first year capital allowances were phased out as part of the Government's 1984 business tax reforms. The purpose of these reforms was to create a more neutral tax regime based on significantly lower rates of tax, with allowances for depreciation more closely reflecting useful asset life.
As a result of these reforms, the main rate of corporation tax has been reduced from 45 per cent. to 33 per cent. and the small companies rate is down from 30 per cent. to 25 per cent. since 1984.
EU Unemployment
Sir Teddy Taylor: To ask the Chancellor of the Exchequer on what grounds he voted at the Council of Ministers on 10 July for sanctions to be applied to EC states which were not proceeding effectively towards the convergence criteria; what is the current level of unemployment in the states concerned; and what estimate he has made of the effect on unemployment if the convergence criteria were adhered to by the nations concerned. [35187]
Mrs. Angela Knight: The ECOFIN Council on 10 July made confidential recommendations to each of the member states with an excessive deficit. No sanctions have been applied to any member state. Member states which receive support form the cohesion fund and also have an excessive deficit-- Greece, Portugal and Spain--may be liable to have their cohesion funding suspended under article 6 of the cohesion fund regulation, but this is a decision for the Commission, not the Council.
The latest OECD standardised estimate of the unemployment rate in Greece in November 1994 is 4.7 per cent., in Portugal in April 1995 is 7.2 per cent., and in Spain in the first quarter of 1995 is 22.8 per cent. The Government believe that the best way to reduce unemployment is by increasing labour market flexibility and creating a stable macro-economic environment. Thus, adhering to the convergence criteria would be consistent with efforts to reduce unemployment in these countries.
Sir Teddy Taylor: To ask the Chancellor of the Exchequer what is the latest estimate of total unemployment within the European Union; and what assessment he has made of the effect on this total of the implementation of the convergence criteria. [35186]
Mr. Waldegrave: The OECD's standardised estimate of the unemployment rate within the European Union in April 1995 is 9.6 per cent. The Government believe that the best way to reduce unemployment is by increasing labour market flexibility and creating a stable macroeconomic environment. The convergence criteria
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are consistent with the creation of a stable macroeconomic environment.Firearms
Mr. Milburn: To ask the Chancellor of the Exchequer how many firearms which had been purchase abroad were brought into the United Kingdom by private individuals in each year since 1992; and what were their categories, classes and types. [36125]
Mr. Heathcoat-Amory: I regret that the information is unavailable.
Manual Workers
Mr. Steinberg: To ask the Chancellor of the Exchequer if he will list the average wage for manual workers in each of the regions of the United Kingdom. [36109]
Mr. Angela Knight: Analysis of average earnings for full-time manual workers in the regions of Great Britain is published in part A, table X5.1 of the "New Earnings Survey" report. Information for part-time manual females within the regions is contained in part F, table 180.1. Copies of the reports are available in the Library.
Labour Statistics
Mr. Byers: To ask the Chancellor of the Exchequer if he will list (a) the percentage of males aged 50 to 65 in full-time employment and (b) the percentage of females aged 50 to 60 years in full time employment. [36122]
Mrs. Angela Knight: Over the quarter ending February 1995 56 per cent. of males aged 50 to 65 were in full-time employment compared with 28 per cent. of females aged 50 to 60 years.
Valuation Office
Mr. Matthew Banks: To ask the Chancellor of the Exchequer whether the three-year review of the Valuation Office as a next steps agency is now complete; and if he will make a statement. [36342]
Mrs. Angela Knight: Following the decision earlier this year that the Valuation Office should continue as a next steps agency in the public sector and within the Inland Revenue, the second and final stage of the three year review of the Valuation Office has been concerned with an evaluation of its performance to date, of the framework within which it operates and of the appropriate senior management structure for it.
The review is now complete. It has found that the Valuation Office has established an impressive track record since its formation as an agency in 1991, successfully completing a number of important operational tasks. The review has identified a number of areas where further improvements would be possible and proposes a comprehensive set of measures to enhance standards of customer service and increase the Valuation Office's overall efficiency and value for money. Details of these are described in an Inland Revenue press release published today.
I congratulate the Valuation Office on its work to date and I welcome and endorse the review's recommendations.
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The review has also examined the potential for greater involvement of the private sector in the Valuation Office's work. In the light of this, it is proposed to undertake some carefully controlled experiments to use the private sector on rating and council tax work. The first pilots will take place during the early part of 1996 97. Details of the pilots will be developed in consultation with representatives of the valuation profession, and of other organisations and bodies directly interested.As a result of a number of recent changes the senior management structure of the Valuation Office has been reduced from 25 posts at 1 January 1994 to 18 now. No further changes are currently proposed but it is planned to invite a non-executive member to join its management board. An appointment will be announced later this year.
No immediate changes to the Valuation Office's financial framework are proposed--but its suitability for establishment as a trading fund will be further considered.
No fundamental changes are proposed to the Valuation Office's operating framework, but some updating of its framework document is desirable. A new edition, together with a summary of the review, will be published later this summer.
There will be a period of consultation with staff and the trade unions to consider the detailed implementation of the proposals.
Tax Changes
Mr. Matthew Banks: To ask the Chancellor of the Exchequer if he will update the information given in the July 1994 "Tax Ready Reckoner and Tax Reliefs" booklet. [36343]
Mr. Kenneth Clarke: The Treasury is today publishing a booklet containing estimates of the effects of various illustrative tax changes on tax receipts in 1996 97 and 1997 98 and estimates of the costs of the main tax reliefs in 1994 95 and 1995 96. Copies are being placed in the Libraries of both Houses.
Debt Management Review
Mr. Matthew Banks: To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the debt management review. [36381]
Mrs. Angela Knight: The debt management review was announced by the then Minister of State to the Treasury on 10 November 1994. It had the following terms of reference:
"To review the existing arrangements for the setting of debt management policy, the selling of Government debt and the management of outstanding debt."
The review was conducted by the Treasury and involved an extensive process of consultation. It was conducted in close co-ordination with the Bank of England. The review covered gilt issuance only. It did not cover national savings.
The report of the review which I am today publishing jointly with the Bank of England contains the conclusions of the review and discusses a number of other current developments in the gilts market. In particular, the report outlines a number of proposals which represent a further move to an open, predictable and transparent gilts
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issuance policy, and which promote the liquidity and efficiency of the gilts market.The Government and the Bank of England believe that, taken together, these changes will reduce funding costs, to the ultimate benefit of taxpayers. Copies of the report have been placed in the Libraries of the House.
Oil Installations
Mr. Alistair Darling: To ask the Chancellor of the Exchequer what proposals he has to change the taxation of oil companies operating in the North sea; and what proposals he has to alter current rules governing reliefs companies may claim in respect of decommissioning or scrapping of oil installations. [31225]
Mr. Jack [holding answer 28 June 1995]: A number of structural changes to the rules for petroleum revenue tax were made in 1993 and my right hon. and learned Friend has no proposals for further major changes to that tax. The cost of decommissioning North sea oil installations is one of the costs of extracting oil in the North sea. As it is the profits of North sea oil companies that are taxed, it is right that tax reliefs should be given for relevant decommissioning costs.
Privatisation
Mr. Byers: To ask the Chancellor of the Exchequer what was, for each company privatised since 1979, the highest number on the share register indicating the date, the date of the privatisation and the present size of the share register. [35093]
Mr. Jack [holding answer 17 July 1995]: The information requested is not held centrally and could be obtained only at disproportionate cost. The current size of individual company share registers is a matter for the companies themselves and their registrars.
Mr. McNamara: To ask the Chancellor of the Exchequer if he will list those parts of his Department or departmental agencies which were privatised without an in-house bid; if he will indicate the expertise which was absent in his Department or departmental agencies which prevented an in -house bid taking place; which future parts of his Department or departmental agencies he intends to privatise; and which of them do not have the necessary in-house expertise to mount an in-house bid. [29416]
Mrs. Angela Knight: I regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Member shortly and place a copy of the letter in the Library.
Departmental Fraud
Mr. Milburn: To ask the Chancellor of the Exchequer, pursuant to his answer of 14 February, column 576 , if he will update the figures on fraud in Government Departments. [35515]
Mr. Jack [holding answer 18 July 1995]: Departmental returns on frauds and suspected frauds committed by departmental and agency staff in 1994 95, including cases where staff have colluded with outsiders, are being collated at present. The 1994 95 figures are expected to be available in early autumn.
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Legislation
Mr. Kirkwood: To ask the Chancellor of the Exchequer what legislation he plans to introduce; and if he will make a statement. [35316]
Mr. Jack [holding answer 18 July 1995]: The Government's plans for legislation will be announced in the Queen's Speech at the start of the 1995 96 Session.
Income Tax
Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer what are his estimates of the number of individuals who paid income tax at a top marginal rate of 40 per cent. or above in each year since 1979 80. [35359]
Mr. Jack [holding answer 18 July 1995]: Information was given in my reply to the hon. Member on 18 July.
Female Employees
Ms Armstrong: To ask the Chancellor of the Exchequer if he will list for each civil service grade in his Department the number of (a) male and (b) female (i) full-time and (ii) part-time employees. [35461]
Mrs. Angela Knight: The numbers of permanent non-industrial staff on 1 April 1995--before the recent machinery of government changes--for HM Treasury, by grade, on a head count basis were as follows:
Male Female
|Full-time|Part-time|Full-time|Part-time
-----------------------------------------------------------------------------
Grade 1 |1 |0 |0 |0
Grade 1A |2 |0 |0 |0
Chief Accountancy Adviser |1 |0 |0 |0
Grade 2 |2 |0 |0 |0
Grade 3 |17 |0 |2 |1
Grade 4 |1 |0 |0 |0
Grade 5 |54 |0 |10 |2
Grade 6 |21 |0 |3 |0
Grade 7 |123 |0 |30 |6
Graduate Trainee |0 |0 |2 |0
AT/HEO(D) |22 |0 |9 |0
EA |1 |0 |0 |0
Assistant Economist |27 |0 |6 |0
SEO |50 |0 |14 |6
HEO |76 |0 |42 |2
EO |93 |1 |52 |8
HSO |0 |0 |2 |0
SO |1 |0 |0 |0
Assistant Statitician |6 |0 |3 |0
Senior Information Officer |2 |0 |0 |0
Information Officer |0 |0 |2 |0
Senior Librarian |2 |0 |2 |0
Librarian |2 |0 |2 |0
Assistant Librarian |1 |0 |2 |0
AO |91 |4 |81 |5
AA |28 |0 |31 |2
SPS |0 |0 |19 |2
PS |0 |0 |85 |16
Ch Typing Manager |0 |0 |2 |0
Typing Manager |0 |0 |2 |0
Typist |1 |0 |26 |4
Support Grade B1 |6 |0 |15 |0
Support Grade B2 |16 |0 |29 |1
Support Manager 2 |0 |0 |2 |0
Support Manager 3 |0 |0 |2 |0
Student |8 |0 |1 |0
Total |653 |5 |478 |55
Female
Full-time Part-time Full-time Part-time
Grade 1 1 0 0 0
Grade 1A 2 0 0 0
Chief Accountancy Adviser 1 0 0 0
Grade 2 2 0 0 0
Grade 3 17 0 2 1
Grade 4 1 0 0 0
Grade 5 54 0 10 2
Grade 6 21 0 3 0
Grade 7 123 0 30 6
Graduate Trainee 0 0 2 0
AT/HEO(D) 22 0 9 0
EA 1 0 0 0
Assistant Economist 27 0 6 0
SEO 50 0 14 6
HEO 76 0 42 2
EO 93 1 52 8
HSO 0 0 2 0
SO 1 0 0 0
Assistant Statitician 6 0 3 0
Senior Information Officer 2 0 0 0
Information Officer 0 0 2 0
Senior Librarian 2 0 2 0
Librarian 2 0 2 0
Assistant Librarian 1 0 2 0
AO 91 4 81 5
AA 28 0 31 2
SPS 0 0 19 2
PS 0 0 85 16
Ch Typing Manager 0 0 2 0
Typing Manager 0 0 2 0
Typist 1 0 26 4
Support Grade B1 6 0 15 0
Support Grade B2 16 0 29 1
Support Manager 2 0 0 2 0
Support Manager 3 0 0 2 0
Student 8 0 1 0
Total 653 5 478 55
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Taxation (Self-assessment)
Mr. MacShane: To ask the Chancellor of the Exchequer what safeguards exist to ensure that tax details on people about to begin self-assessment tax returns do not fall into the hands of (a) General Motors, (b) Mr. Ross Perot and (c) American-based employees of the EDS computer company. [33524]
Mr. Jack: The Inland Revenue is responsible for the
confidentiality of taxpayer records. Under the terms of its IT services contract with EDS Ltd. that company is required to maintain the Department's security and confidentiality standards while the Inland Revenue will monitor performance against those standards. EDS does not process, handle or store taxpayer information outside the United Kingdom without the Department's consent;
EDS's employees and its agents and subcontractors sign the appropriate statutory undertaking not to disclose taxpayer information;
EDS reminds its employees, agents and subcontractors every six months of their obligations under the non-disclosure arrangements, and monitors compliance.
The Inland Revenue has the following safeguards built into the contract and will regularly inspect to ensure:
EDS reports to Inland Revenue all breaches of undertakings and the disciplinary action taken;
EDS maintains the security standards set out in the Inland Revenue's security manual;
EDS observes any departmental requirement not to use specified individuals on Revenue business;
EDS obtains security clearance for all personnel handling classified information; and
EDS ensures that all persons involved in delivering the Department's business are aware of their obligations under the Official Secrets Act 1911.
Legal sanctions--section 182 of Finance Act 1989, on conviction, a fine or imprisonment or both--apply to unauthorised disclosure of personal tax data whether for civil servant or private sector staff. Mr. Ross Perot does not own EDS Ltd. It is a subsidiary of a US parent company, EDS Corporation, which is owned by General Motors.
Ms Quin: To ask the Chancellor of the Exchequer how many of the job losses envisaged as arising under the system of assessment will be redeployed to the fields of compliance and customer service under the change agreement signed between the Inland Revenue Staff Federation and the department of Inland Revenue; and if he will give the figures (a) in total and (b) by region and district. [36213]
Mr. Jack: When self-assessment is bedded down the Inland Revenue currently expects to employ around 3,000 fewer staff. This will be achieved only after implementation and is net after the expected deployment of staff into customer service and compliance work. As the Inland Revenue gains a better understanding of the way self-assessment will work in practice, it is constantly reviewing those net savings. At present, the figures are not sufficiently developed to permit an estimate to be provided on the basis requested.
But in accordance with the change agreement, the Inland Revenue has offered to share the detail of that thinking with the main trade union involved-- the Inland
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