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Isle of Wight (Expenditure)

Mr. Barry Field: To ask the Chancellor of the Exchequer what was the total expenditure by his Department on (a) staff, (b) services, (c) offices and (d) other categories on the Isle of Wight in 1994-95. [16767]

Mrs. Angela Knight: Expenditure on the Isle of Wight in 1994-95 for all categories was nil.

27 Feb 1996 : Column: 485

EDS Ltd.

Ms Eagle: To ask the Chancellor of the Exchequer if he will list those contracts his Department currently holds with EDS Ltd., indicating for each the (a) date of inception, (b) value and (c) duration. [17458]

Mrs. Angela Knight: The Treasury currently holds no contracts with EDS.

Single Currency

Mr. Gordon Prentice: To ask the Chancellor of the Exchequer how much is being allocated by the European Commission to each member state to publicise the alleged benefits of a single currency. [17543]

Mrs. Angela Knight: I refer the hon. Member to the answer I gave him on 7 February 1996, columns 186-87.

Income Tax

Mr. Pearson: To ask the Chancellor of the Exchequer (1) if he will update his answer to the hon. Member for Hartlepool (Mr. Mandelson) of 14 July 1993, Official Report, column 515-16 on the introduction of an upper limit for income tax allowances and reliefs for the years 1995-96 and 1996-97

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providing calculations of the yield from restriction to the basic rate and 20p rate only for those reliefs and allowances claimed at the marginal rate; [14264]

Mr. Jack: Available analyses of the full year yields at 1995-96 and 1996-97 income levels from introducing combinations of allowance and relief limits and restrictions are given in the table. The figures do not take account of any behavioural effects which might result from the introduction of such changes.

The estimated number of people with total allowances and reliefs in excess of these limits are as follows:

Limit Thousands
£1995-961996-97
10,000170190
15,0006070
20,0003040


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Full year yield (£ billion) at 1995-96 income levels restricted to: Full year yield (£ billion) at 1996-97 income levels restricted to:
Upper limit for total allowances and reliefs(22)Marginal ratesBasic rate20 per cent.Marginal rateBasic rate20 per cent.
£
10,0000.52.87.80.53.17.1
15,0000.32.67.70.33.07.0
20,0000.22.67.70.22.97.0
No limit--2.57.5--2.86.8

(22) Available at marginal rates of tax.


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27 Feb 1996 : Column: 485

Mr. Martyn Jones: To ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Peckham (Ms Harman) of 5 March 1993, Official Report, column 335, on the cumulative gain as a result of changes in income tax and national insurance since 1978-79 and 1987-88 to (a) 1995-96 and (b) 1996-97. [14402]

Mr. Jack: Readily available information on the annual reduction in income tax and national insurance liability for 1995-96 and 1996-97 compared with the 1978-79 and 1987-88 indexed regimes are given in the table. They are based on projections of the 1993-94 survey of personal incomes. These comparisons are hypothetical since if an indexed version of the 1978-79 and 1987-88 tax regime had prevailed the income base would not have grown in the way it has. The effect of changes in mortgage relief cannot be included in the analysis because most mortgage interest relief is given at source and therefore is not recorded on individual tax records.

27 Feb 1996 : Column: 486

Average reduction in income tax and national insurance per individual in 1995-96
£

Compared with 1978-79 indexed regime Compared with 1987-88 indexed regime
Range of individuals income in 1995-96Income taxIncome tax and national insuranceIncome taxIncome tax and national insurance
Under 5,0001301605060
5,000-10,000360320160190
10,000-15,000720540220290
15,000-20,0001,080720290310
20,000-25,0001,440810360320
25,000-30,0001,8301,100420350
30,000-40,0002,1201,39015060
40,000-50,0003,3502,640430340
50,000-60,0005,3804,6801,2301,190
60,000-70,0008,4807,7802,6002,510
70,000-80,00012,20011,6004,3404,240
Over 80,00047,90047,20019,90019,800
Average1,230970390400

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Average reduction in income tax and national insurance per individual in 1996-97
£

Compared with 1978-79 indexed regime Compared with 1987-88 indexed regime
Range of individuals income in 1996-97Income taxIncome tax and National InsuranceIncome taxIncome tax and National Insurance
Under 5,0001502006080
5,000-10,000390380200250
10,000-15,000810670330420
15,000-20,0001,240920450500
20,000-25,0001,6401,090560550
25,000-30,0002,0701,390690610
30,000-40,0002,4901,830530450
40,000-50,0003,5602,930700630
50,000-60,0005,4904,9001,4901,420
60,000-70,0008,3207,7602,6902,640
70,000-80,00011,80011,2004,3404,270
Over 80,00047,20046,70019,70019,600
Average1,4101,170540550

Mortgage Endowment Policies

Mr. Frank Field: To ask the Chancellor of the Exchequer if he will require each major company with mortgage endowment policy repayment schemes which have yet to mature to conduct an audit of these policies. [17475]

Mrs. Angela Knight: If customers with mortgage endowment policy repayment schemes are concerned about the maturity value of their policy, they should discuss the situation with their insurer.

27 Feb 1996 : Column: 488

Mr. Field: To ask the Chancellor of the Exchequer if he will list, by the top 10 companies, the sales of mortgage endowment repayment policies since 1979; and if he will indicate the value of these policies by companies for each year since 1979. [17473]

Mrs. Angela Knight: This information is not held centrally.

Self-employment

Mrs. Roche: To ask the Chancellor of the Exchequer what progress has been made on the piloting of a single form to give the self-employed a single notification point along the lines announced in the Government's response to the first annual report of the deregulation task force. [15678]

Mr. Jack [holding answer 20 February 1996]: The pilot of the single form to give the self-employed a single notification point for tax, national insurance contributions and VAT commenced in October 1995. The form is available from tax, social security, VAT and business link offices in the pilot area in the north of England. The pilot, which has been well received, is due to run until March 1996. The intention is then to extend the use of the form to the rest of the country. In developing the national version of the pilot, the Inland Revenue has been guided by comments from consultation with customers.

Scott Inquiry

Mr. Hain: To ask the Chancellor of the Exchequer what was the cost of the allocation of persons in his Department to the consideration of the Government's response to the Scott inquiry. [16572]

Mr. Kenneth Clarke [holding answer 22 February 1996]: Access to the report itself prior to publication was restricted to a very small number of officials in my Departments, in accordance with the procedure agreed with the Scott inquiry. However, the Scott report covered a wide range of policy issues and a number of other officials contributed to preparation of the Government's response without sight of the report. It is not therefore possible to give the cost of the work.

Mr. Janner: To ask the Chancellor of the Exchequer how he responded to communications received from Mr. Christopher Muttukumaru; what were the dates of letters; and if he will deposit copies in the Library.[16547]

Mr. Kenneth Clarke [holding answer 22 February 1996]: I and my officials have responded to a number of letters from Mr. Muttukumaru, for example, about my evidence to the inquiry in February 1994. Sir Richard Scott is free to publish any document he considers to be relevant to his report, consistent with his procedures. I understand that he proposes to do this as soon as possible.

Mr. Janner: To ask the Chancellor of the Exchequer what communication he received from the Secretary of the Scott inquiry, concerning the time needed by the Opposition parties to scrutinise the Scott report; on what date he received such communications; what was the nature of the contents of the letters; and if he will deposit copies of those letters in the Library. [16629]

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Mr. Kenneth Clarke [holding answer 22 February 1996]: I refer the hon. Member to the answer given to him by the President of the Board of Trade on 22 February, columns 251-52.

Mr. Madden: To ask the Chancellor of the Exchequer at what hour and minute of which day the report of the Scott inquiry was delivered to his office. [16491]

Mr. Kenneth Clarke [holding answer 22 February 1996]: At about 6 pm on Friday 9 February.

Mrs. Dunwoody: To ask the Chancellor of the Exchequer when he first saw the report of the Scott Inquiry. [16581]

Mr. Kenneth Clarke [holding answer 22 February 1996]: On 10 February, at about 10 am.


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