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TREASURY
Child Benefit
Mr. Walden: To ask the Chancellor of the Exchequer what estimate he has made of the additional revenue which would accrue from taxing child benefit as income. [19346]
Mr. Jack: If child benefit were taxed, the yield for 1996-97 from taxing it as part of the father's or lone mother's income would be about £1,300 million. If it were taxed as part of the mother's or lone father's income, the yield would be about £700 million.
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Investment Statistics
Mr. Soley: To ask the Chancellor of the Exchequer what would be the capital value of (a) £1,000, (b) £2,000, (c) £3,000, (d) £4,000 and (e) £5,000 invested 18 years ago in (i) Government bonds, (ii) the average building society savings account and (iii) the average unit trust.[18862]
Mrs. Angela Knight: Capital values of £1,000 invested 18 years ago are as follows:
| Investment | Capital value | Period of investment |
|---|---|---|
| (i) Government bonds | £7,587 | End December 1977 to December 1995 |
| (ii) average building society savings account | data not available over this period | |
| (iii) Unit trusts | £14,230 | End February 1978 to February 1996 |
| Investment | Capital value | Period of investment |
|---|---|---|
| (i) Government bonds | £3,616 | end December 1983 to December 1995 |
| (ii) average building society savings account | £2,295 | end December 1983 to December 1995 |
| (iii) unit trusts | £4,795 | end December 1983 to December 1995 |
All the above figures assume that interest and dividend payments are reinvested in the same investment instruments.
Source:
FT Actuaries Government All Stock index of total returns.
Building Societies Commission, published in CSO Financial Statistics.
UK Growth unit trust sector, on an offer to bid basis; data collated by Micropal.
Financial Services Act
Mr. David Nicholson: To ask the Chancellor of the Exchequer if it is his policy that it is up to the investor, alone, to identify a breach of section 47 of the Financial Services Act 1986. [19966]
Mrs. Angela Knight: No. It is also for those authorities with prosecution powers under section 47 to take what action they consider appropriate in the light of information they receive.
Farmers Union of Wales
Mr. Llwyd: To ask the Chancellor of the Exchequer what representations his Department has recently received from the Farmers Union of Wales; and if he will make a statement. [20078]
Mrs. Angela Knight: The Treasury has recently received no representations from the union.
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DIY Housebuilders
Mr. Riddick: To ask the Chancellor of the Exchequer how many claims by do-it-yourself housebuilders for the refund of value added tax under the provisions of customs and excise notice number 719 were met in (a) 1993, (b) 1994 and (c) 1995. [19646]
Mr. Heathcoat-Amory: Details of the number of claims met in 1993 are not available. The number of claims met-- partly estimate--in 1994 was 8,671 and the number met in 1995 was 10,423.
Landfill Tax
Mrs. Ann Winterton: To ask the Chancellor of the Exchequer (1) if he will make it his policy that capital already invested by companies in research and installation of the best practicable environmental option for the disposal of waste materials can be set against liability for landfill tax; [19993]
- (2) what definition of qualifying material for the lower rate of landfill tax will be the benchmark for fiscal decision; [19994]
(3) what are the fiscal objectives of the landfill tax; [19976]
(4) when he expects to receive the report on the consultation process on the scope of the lower rate of the landfill tax; and if he will publish the results; [19975]
(5) what research he has commissioned into whether reduction in employers' national insurance contributions will provide the intended benefit to industry in relation to the landfill tax; [19979]
(6) if he will consider the zero-rating the landfill tax for those companies whose processes already comply with the environmental objectives of the tax; [19977]
(7) if he will consider extending the scope of the lower rate of landfill tax to include (a) waste materials which are commonly termed as inert or inactive, other than those listed in category 1 of the proposed natural waste confiscation system in the Finance Bill; [19978]
(8) what are the environmental objectives of the landfill tax; [19693]
(9) what are the definitions of active and inactive waste used for the purposes of the landfill tax in the consultation exercise on the system for classifying waste for the national waste classification system; [19694]
(10) if water, brine or other natural elements used to carry waste materials for landfill will be included in the weight measure for the landfill tax where they are recycled for re-use; [19695]
Mr. Heathcoat-Amory [holding answer 11 March 1996]: The objectives of the landfill tax are essentially environmental. It will play a key part in achieving the aims of the Government's waste strategy in reducing our reliance on landfill and promoting more sustainable alternatives such as waste minimisation, re-use and recovery. In fiscal terms it will also enable us to reduce employer national insurance contributions which will benefit industry by cutting the cost of employment by some £500 million a year, rather more than landfill tax is expected to raise. This follows extensive consultation with
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business and marks a shift in the burden of taxation on business, away from employment and towards taxing its environmental impact.
We have included a number of provisions in the legislation which will reinforce the environmental objectives of the tax. The associated proposal for environmental trusts, which has the potential to generate about £100 million of private sector investment for environmental improvement, will complement and reinforce our policies for sustainable waste management.
We also wish to facilitate the recycling and re-use of materials which are sent to landfill sites. Therefore, by agreement with the local customs officer, operators will be able to define tax-free zones within their sites to enable them to carry out non-taxable activities, such as waste separation for recycling and composting. There will also be provision for credits where an operator removes waste from his landfill site for recycling or re-use within 12 months of it being landfilled. And for certain wastes that contain added water to assist with waste disposable or for mineral extraction, local customs officers will be able to agree formulae with operators so that the tax is levied on the naturally occurring weight of the waste, provided that the added water does not increase the risk of pollution through leaching. This will ensure that there is no incentive for operators to reduce the addition of water where it is needed for environmental purposes. The categories of waste to which this applies will be set out in regulations, on which we shall be consulting.
I recognise that, for a range of wastes, landfill will remain the best practical environmental option and I am aware that in some cases industry has been responsible and invested to reduce the pollution potential of its waste. However, the fact that waste from a particular industrial process is disposed of in accordance with the best practical environmental option does not in itself ensure that the full environmental cost of landfill disposal is reflected in the price paid for waste disposal. The underlying purpose of the tax is to make environmental costs explicit and ensure that those contemplating activities with environmental impacts take account of these costs. The tax will also provide an incentive for waste producers to look for new ways to reduce the amount of waste which they produce.
My right hon. and learned Friend the Chancellor of the Exchequer announced in his Budget that there will be two rates of landfill tax--a lower rate for inactive material and a standard rate for other wastes. Customs consulted on a proposal that all wastes falling within category one, the inactive category, of the Department of the Environment's national waste classification scheme should be liable to the lower rate of landfill tax. Inactive wastes are those that do not physically or chemically react, decay or adversely affect other matter with which they come into contact in a way that is likely to give rise to environmental pollution. The term active waste is not one which is used in the context of the landfill tax--wastes which will be liable at the standard rate will be all those which are not inactive or exempt.
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