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Tax Changes

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer what is his timetable for (a) the abolition of (i) capital gains tax and (ii) inheritance tax, and (b) implementing a standard rate of tax at 20p in the pound; and if he will make a statement. [3245]

Mr. Jack [holding answer 11 November 1996]: The Government remain committed to the long-term aims of abolishing capital gains tax and inheritance tax, and reducing the basic rate of income tax to 20 per cent., as and when resources permit.

Labour Statistics

Mr. Hain: To ask the Chancellor of the Exchequer (1) if he will list the number and percentage of economically inactive (i) men, (ii) women and (iii) people of working age in the United Kingdom and for each region in (a) 1981, (b) 1991 and (c) 1996, indicating the percentage changes since 1981; [2810]

(2) what are the latest figures for the number and percentage of economically inactive (a) men and (b) people of working age for (i) the United Kingdom and (ii) each region aged (1) 16 to 24, (2) 25 to 34, (3) 35 to 49 and (4) 50 to 64 years; [2811]

(3) what are the latest figures for the number and percentage of economically inactive (a) women and (b) men of working age for the United Kingdom and for each region aged (i) 16 to 24, (ii) 25 to 34, (iii) 35 to 49 and (iv) 50 to 59 years. [2813]

Mrs. Angela Knight [holding answer 12 November 1996]: The information requested falls within the responsibility of the chief executive of the Office for National Statistics. I have asked him to arrange for a reply to be given.

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Letter from Tim Holt to Mr. Peter Hain, dated 14 November 1996:

The Chancellor of the Exchequer has asked me to rely as the Director of the Office for National Statistics on your recent questions (2810, 2811 and 2813) on various breakdowns of the economically inactive of working age by region.

The information is available from the Labour Force Survey database which can be accessed by the House of Commons Library.

Mr. Hain: To ask the Chancellor of the Exchequer (1) what percentage of economically inactive (a) men and (b) women of working age are classed as (i) sick, (ii) disabled and (iii) voluntary retirees; [2812]

(2) what percentage of economically inactive people of working age are classed as (a) sick, (b) disabled and (c) voluntary retirees. [2814]

Mrs. Knight [holding answer 12 November 1996]: The information requested falls within the responsibility of the chief executive of the Office for National Statistics. I have asked him to arrange for a reply to be given.

Letter from Tim Holt to Mr. Peter Hain, dated 14 November 1996:

The Chancellor of the Exchequer has asked me to reply as the Director of the Office for National Statistics on your recent questions (2812 and 2814) on the numbers of economically inactive of working age who are sick, disabled or retired.
The available information is shown in the table.
Economically inactive people of working age(16) by gender and reason for inactivity (Great Britain, Spring 1996)Reason for inactivity (as percentage of all inactive)

	All economically inactive2	Temporarily sick or injured	Long-term sick or disabled	Retired	Other
Total	7,491	2.9	26.2	5.9	65.1
Men	2,765	3.8	40.7	11.0	44.5
Women	4,727	2.3	17.7	2.9	77.1




Note:

(16) Working age is defined as 16-64 for men and 16-59 for women.

(17)= 100 per cent.

Source:

Labour Force Survey, Office for National Statistics.

Taxation (Self-assessment)

Mrs. Roche: To ask the Chancellor of the Exchequer (1) if self-assessed taxpayers who are selected for random audit in 1997-98 will be told that they are being investigated for purely statistical reasons; [3111]

(2) how many random audits his Department plans to carry out in 1997-98 under self-assessment power S9A TMA 1970. [3112]

Mr. Jack [holding answer 12 November 1996]: No tax returns will be selected for inquiry purely for statistical reasons.

Most returns will be selected on the basis of an identified tax risk, but the Inland Revenue proposes to select approximately 10,000 tax returns for inquiry on a random basis during 1997-98, that is about 0.1 per cent. of all self-assessment returns. First and foremost, random inquiries will help to deter would-be tax evaders, who believe they might otherwise successfully cover their

14 Nov 1996 : Column: 311

tracks and so avoid selection for inquiry. They will also help the Department to identify new areas of high risk and indicate levels of compliance.

The Inland Revenue will not tell any taxpayer the basis on which his return has been chosen for inquiry, since to do so would undermine the effectiveness of this new power and could introduce unnecessary confrontation into inquiry work.

The Inland Revenue aims for high standards in its inquiry work and has published a new code of practice 11--"Enquiries into tax returns by local Tax offices"--explaining how this will be conducted under self-assessment.

Mrs. Roche: To ask the Chancellor of the Exchequer what steps the Inland Revenue is taking to ensure that queries about the self-assessment system are dealt with speedily. [3255]

Mr. Jack [holding answer 12 November 1996]: The Inland Revenue will seek to achieve the published standards of customer service for 1996-97 for all taxpayers including those affected by self-assessment.

The capacity of tax inquiry centres and switchboards has been reviewed and where appropriate enhanced. A helpline has been established to assist taxpayers outside normal working hours.

Mrs. Roche: To ask the Chancellor of the Exchequer how many staff the Inland Revenue had (a) in 1994 and (b) in each subsequent year; and what increases in staffing there will be to cover the period of the introduction of self-assessment. [3322]

Mr. Jack [holding answer 12 November 1996]:

(a) At 1 April 1994 the Inland Revenue, excluding the Valuation Office Agency, had 58,569 staff in post;


(b) The numbers for subsequent years are:



April: 54,562
April: 52,150

There will be no increase in staff numbers to cover the introduction of self-assessment, but measures have been taken to ensure that a higher level of customer service is available in a number of ways to help with any queries which may arise during the introductory period.

Taxation Letters

Mrs. Roche: To ask the Chancellor of the Exchequer how many letters the Inland Revenue has received (a) in total and (b) from self-employed people in each quarter during the last five years. [3253]

Mr. Jack [holding answer 12 November 1996]: The Inland Revenue does not currently disaggregate information on post volumes by origin or type of post. The table shows quarterly volumes of post received since April 1993. Earlier figures are obtainable only at disproportionate cost.

Year		Total volume of post received (18)
1993-94	First quarter	33,133,062
	Second quarter	32,755,151
	Third quarter	33,124,631
	Fourth quarter	31,089,124
1994-95	First quarter	35,665,814
	Second quarter	32,394,943
	Third quarter	33,332,228
	Fourth quarter	29,986,006
1995-96	First quarter	29,807,052
	Second quarter	29,388,557
	Third quarter	31,992,414
	Fourth quarter	29,480,783
1996-97	First quarter	29,149,287
	Second quarter	26,991,811

(18) Figures are for Inland Revenue regional executive offices responsible for assessing and collecting income tax, corporation tax and capital gains tax.

14 Nov 1996 : Column: 312

Inland Revenue (Letters)

Mrs. Roche: To ask the Chancellor of the Exchequer what was the average time the Inland Revenue took to answer letters (a) in 1979 and (b) in each subsequent year. [3260]

Mr. Jack [holding answer 12 November 1996]: The Inland Revenue does not collect information on average response times. Instead, it measures performance against its customer service standard of replying to all types of post within 28 days. These customer service results are published annually in the board of Inland Revenue report, copies of which are in the House of Commons Library.

TRADE AND INDUSTRY

Company Directors

Mr. David Nicholson: To ask the President of the Board of Trade what representations he has received asking him to make it a criminal offence for a director of a company knowingly to make untrue statements about a competitor company to an hon. Member, a Member of the House of Lords or a Member of the European Parliament; if he will consider such a proposal; and if he will make a statement. [3530]

Mr. John M. Taylor: I have received no such representations. Any person, whether or not a director of a company, must already have regard in any statement about a third party which he or she may make to a Member of Parliament to the application of the law of defamation to the statement in any circumstances outside the scope of the strict rules of absolute parliamentary privilege.

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