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TREASURY

Endangered Species

12. Mr. Tony Banks: To ask the Chancellor of the Exchequer what efforts are being made by Her Majesty's Customs and Excise to stamp out the illegal trade in endangered species of flora and fauna. [325]

Mr. Oppenheim: Her Majesty's Customs and Excise plays a key enforcement role in the United Kingdoms long-standing obligations under CITES, the Convention on International Trade in Endangered Species. This entails not only monitoring and regulating legitimate trade with third countries but seizing unlawful goods and, where appropriate, prosecuting those engaged in illegal trading.

Tax Rebates

13. Ms Lynne: To ask the Chancellor of the Exchequer what plans he has to ensure that formerly unemployed people who have paid too much tax receive their full tax rebate. [326]

Mr. Jack: Existing procedures ensure that any tax overpaid would be repaid in the normal way.

Single Currency

14. Mrs. Bridget Prentice: To ask the Chancellor of the Exchequer what representations have been made to him on the criteria for joining the European single currency. [327]

Mr. Clarke: The Government's economic policy objectives of permanently low inflation and sound public finances are fully consistent with the Maastricht convergence criteria. These criteria make economic sense in their own right, and are essential for economic success with or without EMU.

The precise interpretation of the criteria will be for the Council of Ministers to decide in early 1998, when the decision is taken on which countries have qualified to join the single currency.

Inflation

16. Sir Sydney Chapman: To ask the Chancellor of the Exchequer if he will make a statement on the prospects for inflation into the next decade. [329]

Mrs. Angela Knight: The prospects are excellent. In recent years we have enjoyed the lowest inflation rate for almost half a century, and the Government are determined that it should remain low.

Mr. Harry Greenway: To ask the Chancellor of the Exchequer what was the average rate of inflation (a) between March 1974 and May 1979 and (b) since May 1979; and if he will make a statement. [995]

Mrs. Knight: The average rate of year-on-year inflation measured by the retail prices index all items excluding mortgage interest payments was 16 per cent. between March 1974 and May 1979. The average rate since May 1979 has been 6.3 per cent. Since the Government's inflation target rate was set in October 1992, the average rate has been 2.8 per cent.

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Personal Taxation

17. Mr. Barnes: To ask the Chancellor of the Exchequer what are the latest available figures for total personal taxation as a percentage of the total tax take; what was the equivalent figure in 1978-79; and if he will make a statement. [330]

Mr. Waldegrave: Total personal taxation was 69 ¹ per cent. of total non-North sea taxes and national insurance contributions in both 1978-79 and 1995-96.

The Government are committed to low taxation and a tax system that raises revenue in ways that do least damage to the economy and encourage enterprise. Government tax reforms since 1979, particularly the switch from direct to indirect taxation, have allowed people to keep more of the money they earn to spend or save as they choose. By sharpening work incentives and encouraging wealth creation, the Government have laid the foundation for sustained long-term improvement in general living standards.

Private Finance Initiative

18. Mr. Tredinnick: To ask the Chancellor of the Exchequer what is his forecast for investment through private finance projects over the next three years. [332]

19. Mr. Gallie: To ask the Chancellor of the Exchequer what is the total value of agreements announced under the private finance initiative to date. [333]

Mr. Jack: The latest available forecasts can be found in table 6.4 of the "1996-97 Financial Statement and Budget Report", and showed that the Government forecast private sector capital investment of £1.9 million in 1996-97, £2.6 million in 1997-98, and £2.8 million in 1998-99 at the time of the last Budget. The latest projections for the three years from 1997-98 will be published in the next "Financial Statement and Budget Report", on 26 November. Just over £7 billion worth of deals have been agreed to date.

Taxation (Cigarettes)

20. Mr. Steen: To ask the Chancellor of the Exchequer if he will increase the tax levied on cigarettes. [334]

Mr. Oppenheim: That is a matter for my right hon. Friend the Chancellor of the Exchequer in his Budget statement.

Poor Families

21. Mr. Mackinlay: To ask the Chancellor of the Exchequer by what method he consults the views of poor families prior to reaching decisions on tax and other measures to be included in the Finance Bill. [335]

Mr. Jack: We receive many letters from all sections of the community, including those who are less well off, setting out their ideas for the forthcoming Budget. All representations are looked at carefully and inform the final Budget decisions.

Public Sector Borrowing Requirement

22. Mr. Skinner: To ask the Chancellor of the Exchequer what, at the latest possible date, is the figure for the PSBR. [336]

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Mr. Waldegrave: The PSBR in September was £3.4 billion. The PSBR in the first half of 1996-97 was £16.1 billion, compared with £20.1 billion in the first half of 1995-96. The summer economic forecast projected a PSBR of £26.9 billion in 1996-97 as a whole.

23. Mr. Wareing: To ask the Chancellor of the Exchequer if he will make a statement on the current stage of the public sector borrowing requirement. [337]

Mr. Waldegrave: The PSBR in the first half of 1996-97 was £16.1 billion, compared with £20.1 billion in the first half of 1995-96. The summer economic forecast projected a PSBR of £26.9 billion in 1996-97 as a whole, a decline of nearly £5 billion compared with the PSBR in 1995-96.

Incomes

Mr. Evenett: To ask the Chancellor of the Exchequer what estimate he has made of the income of a family on average earnings (a) in April 1992 and (b) in April 1997.[324]

Mr. Jack: Real take-home pay for a one-earner family on average earnings was £292 per week in 1991-92 and is expected to rise to £305 per week in 1996-97. That is a total rise of around £700 a year. The 1996-97 income of a family on average earnings is up £700 a year after the effects of tax and inflation when compared to that of 1991-92.

Scottish Economy

Ms Roseanna Cunningham: To ask the Chancellor of the Exchequer when he last met representatives of the business community in Scotland to discuss recent trends in the Scottish economy. [328]

Mrs. Angela Knight: My right hon. and learned Friend keeps in regular touch with representatives of the business community from all parts of the UK, including Scotland. His last meeting with Scottish business men and women was on Tuesday 29 October.

Mortgage Tax Relief

Mrs. Malcolm Bruce: To ask the Chancellor of the Exchequer what is his estimate of the cost to the Exchequer of mortgage interest tax relief in (a) 1996-97 and (b) 1997-98. [805]

Mr. Jack: The estimated total cost of mortgage interest relief in 1996-97 is £2.3 billion. This estimate is provisional. It is based on the assumption, by convention, of no change from the current estimated average building society interest rate of 6.5 per cent. The cost of the relief in 1997-98 would depend on future interest rates and the future distribution of the number and value of outstanding mortgages.

Income Tax

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer what is his estimate of the full-year cost of reducing the income tax rate on the existing 20 per cent. band to (a) 15 per cent., and (b) 10 per cent. [806]

Mr. Jack: The estimated full-year cost at 1997-98 income levels of reducing the income tax rate on the existing 20 per cent. band to 15 per cent. is about

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£4.5 billion and to 10 per cent. is about £9 billion. The estimates assume that the income tax rate on savings and dividend income is reduced to 15 and 10 per cent. and that the estimates take account of the effects of the change on receipts of advanced corporation tax and on consequential liability to mainstream corporation tax.

Mr. Bruce: To ask the Chancellor of the Exchequer what is his estimate of the full year cost per person of raising the standard rate of income tax by 1p in the pound for (a) each adult in the United Kingdom and (b) each income tax payer in the United Kingdom. [813]

Mr. Jack: The average tax increase at 1996-97 income levels of increasing the basic rate of income tax by 1p is about £35 for each adult--aged 18 and over--and about £63 for every income tax payer in the United Kingdom.

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