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TRADE AND INDUSTRY

Hotels (Value Added Tax)

Mrs. Ewing: To ask the Chancellor of the Exchequer if he will list the current relevant levels of VAT levied by hotels in each of the European Union countries in respect of (a) accommodation and (b) food purchase. [1363]

Dawn Primarolo: The VAT rates applied in European Union countries to hotel accommodation and meals are shown in the table.

VAT on hotel accommodation and meals in the EUPercentage

Country	Hotel accommodation	Hotel meals
Austria	10	20
Belgium	6	21
Denmark	25	25
Finland	6	22
France	5.5	20.6
Germany	15	15
Greece	8	8
Ireland	12.5	12.5
Italy(10)	10	10
Luxembourg	15	15
Netherlands	6	17.5
Portugal(11)	5	12
Spain	7	7
Sweden	12	12
UK(12)	17.5	17.5

(10) The standard rate of 19 per cent. applies in both instances to luxury hotels.

(11) A rate of 4 per cent. applies for hotel accommodation and 10 per cent. for hotel meas in Madeira and the Azores Archipelagoes.

(12) A rate of 5 per cent. applies to hotel accommodation in the Isle of Man.

Customs and Excise (Merger)

Mr. Jack: To ask the Chancellor of the Exchequer when he expects to publish the findings of his review on the feasibility of merging Customs and Excise and the Inland Revenue. [1855]

Dawn Primarolo: A programme of closer working (but not merger) between Customs and Excise and Inland Revenue resulted from a review under their Fundamental Expenditure Reviews in 1994 of the boundary between the two departments. We intend to develop further this programme in support of Government objectives.

Interest Rate

Mr. Jack: To ask the Chancellor of the Exchequer if he will list which of the economic indicators for which his Department receives data he will take into account when assessing interest rate policy. [1872]

Mrs. Liddell [holding answer 2 June 1997]: The Chancellor has transferred the operational responsibility for setting interest rates to the Bank of England.

3 Jun 1997 : Column: 147

Mr. Jack: To ask the Chancellor of the Exchequer at present levels of economic activity, at what amount interest rates would have to be set to achieve levels of inflation of (a) 2.4 per cent., (b) 2.3 per cent., (c) 2.2 per cent., (d) 2.1 per cent. and (e) 2.0 per cent. by the end of March 1998. [1871]

Mrs. Liddell [holding answer 2 June 1997]: The mechanisms by which interest rates affect the inflation rate are quantitatively uncertain and may be influenced by unforeseen events reflecting the time lags involved. Therefore it is not possible to be sure about the precise level of interest rates required to hit an exact inflation rate ten months ahead.

Mr. Jack: To ask the Chancellor of the Exchequer, pursuant to his oral statement of 20 May, Official Report, column 508, what are his growth objectives for the British economy for its financial years 1997-98, 1998-99, and 1999-00; and if he will state his employment objectives, (a) numerically and (b) descriptivity, for the same financial years. [1864]

Mrs. Liddell [holding answer 2 June 1997]: The Government's central economic objectives are high and stable levels of growth and employment. The Government do not intend to set numerical targets for growth and employment.

Mr. Jack: To ask the Chancellor of the Exchequer, pursuant to his oral statement of 20 May, Official Report, column 508, what are the numerical targets of the Government's economic policy for the key indicators to monitor. [1863]

Mr. Geoffrey Robinson [holding answer 2 June 1997]: The Chancellor will set out the Government's approach to monetary policy in his Mansion House speech on 12 June. The Government regard price stability as an essential pre-condition for high and stable levels of growth and employment. Sound public finances are also important for lasting economic stability. The Government's fiscal policy will be spelt out in the Budget.

Mr. Jack: To ask the Chancellor of the Exchequer by what means he proposes to resolve any incompatibility between the Bank of England's monetary policy objective of price stability and the Government's growth and employment objectives. [1865]

Mrs. Liddell [holding answer 2 June 1997]: The monetary policy objective of the Bank of England will be to deliver price stability (as defined by the Government's inflation target) and, without prejudice to this objective, to support the Government's economic policy, including their objectives for growth and employment. Price stability is the best way that monetary policy can contribute to achieving high and stable levels of growth and employment in the long run.

Mr. Jack: To ask the Chancellor of the Exchequer, pursuant to his oral statement of 20 May, Official Report, column 509, what is his definition of (a) extreme economic circumstances and (b) a limited period; and if he will make a statement covering both the numerical and descriptive aspects of these matters. [1869]

Mrs. Liddell [holding answer 2 June 1997]: Further details will be made available when the draft Bill is introduced into the House.

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Departmental Advisers

Mr. Jack: To ask the Chancellor of the Exchequer how many advisers employed in his office during his time in opposition are now working with him in the Treasury; what are their names; how old they are; what the terms and conditions are upon which they are now employed; how much salary they are each being paid; if that money is coming from public or private sources; and if he will publish a detailed curriculum vitae for each of the individuals concerned. [1732]

Mr. Gordon Brown [holding answer 2 June 1997]: The Prime Minister has approved the appointment of Ed Balls, Charles Whelan, Edward Miliband and Andrew Maugham as paid Special Advisers to HM Treasury.

The terms and conditions for Special Advisers paid from public funds were agreed by the Prime Minister on 19 May in the attachment to his letter to Cabinet colleagues. A copy is being placed in the Library of the House. No salaries for those employed in the Treasury have yet been agreed.

It would not be appropriate for me to publish personal information about the individuals concerned, or to comment on their previous private employment arrangements.

Mr. Denzil Davies: To ask the Chancellor of the Exchequer if he will publish the names of the political and special advisers appointed to his Department since the general election. [1626]

Mrs. Liddell: The Prime Minister has approved the appointment of Ed Balls, Charles Whelan, Edward Miliband and Andrew Maugham as paid Special Advisers to HM Treasury.

Labour Statistics

Mr. Goggins: To ask the Chancellor of the Exchequer how many young people under the age of 25 years have been unemployed for over six months in (a) Great Britain, (b) England, (c) Manchester, (d) Trafford and (e) Wythenshawe and Sale East. [1643]

Mrs. Liddell [holding answer 2 June 1997]: 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. Paul Goggins, dated 3 June 1997:

The Chancellor of the Exchequer has asked me as the Director of the Office for National Statistics to reply to your recent question asking how many young people under the age of 25 years have been unemployed for over six months in (a) Great Britain, (b) England, (c) Manchester, (d) Trafford and (e) Wythenshawe and Sale East.
The ONS produces two measures of unemployment. The first, derived from the quarterly Labour Force Survey, is defined on a consistent and internationally recognised basis set out by the International Labour Organisation (ILO) and counts as unemployed, people who are: a) without a paid job; b) available to start work within the next two weeks and c) have either looked for work in the past four weeks or are waiting to start a job already obtained.
ONS also publishes the monthly claimant count, which is based on the UK administrative system and includes all people claiming unemployment-related benefits at Employment Service offices on the day of the monthly count, who on that day had signed on as

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unemployed and available to do any suitable work. All people who attend an Employment Service office to sign are counted, irrespective of whether they are actually receiving benefit.
Both measures are described and compared in the ONS booklet How exactly is Unemployment Measured. Please find a copy enclosed with this reply.
Information on length of time ILO unemployed is generally available from the Labour Force Survey, a quarterly basis down to county, or former county, level. The most recent information available is for autumn 1996. Some information for local authorities is available from the annual LFS Local Area Database (LAD). However, in order to protect confidentiality the database only includes key data items and length of time unemployed is not among them. If it were available the figure for Trafford would be less than the threshold for reliable estimates. No figures less than this threshold can be released. Further information on the Local Area Database is available in the May 1996 edition of Labour Market Trends (pages 239-246) which is available in the House of Commons library. No information about parliamentary constituencies is available from the LFS. The latest available figures are shown in the table below:

	Unadjusted claimant unemployment(13)	ILO unemployed(14)
Great Britain	171,572	246,000
England	145,266	211,000
Greater Manchester county	8,089	13,000
Trafford LAD(15)	413	n/a
Wythenshawe and Sale East PCA(16)	426	n/a




Notes:

(13) By duration of six months or more, April 1997.

(14) For at least six months (unadjusted, autumn 1996 LFS).

(15) Local authority district.

(16) Parliamentary constituency area.

Source:

ONS.

Mr. Ben Chapman: To ask the Chancellor of the Exchequer what plans he has to revise the method of calculating the unemployment statistics. [1092]

Mrs. Liddell: The Director of the Office for National Statistics is responsible for deciding the form, coverage and timing of release of statistics issued by his Office, taking into account the views of customers. ONS is presently consulting customers on the future presentation of labour market statistics; the consultation exercise was launched through an article in the Labour Market Trends published on 8 May. Comments on the proposals should be sent to ONS by 14 June.

The proposals set out for consultation reflect the House of Commons Employment Select Committee recommendation that more prominence should be given to the measure of unemployment which is based on the internationally agreed ILO definition.

Mr. Willetts: To ask the Chancellor of the Exchequer how many people aged 18 to 24 years who had been unemployed for more than six months found jobs in each of the past five years; how many people in that age group became unemployed for more than six months in each of the past five years; and how many such people on average were unemployed for more than six months in each of the past five years, [1631]

Mrs. Liddell: The information requested falls within the responsibility of the Chief Executive of the Office for National Statistics. I have asked him to arrange a reply to be given.

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Letter from Tim Holt to Mr. David Willetts, dated 3 June 1997:

The Chancellor of the Exchequer has asked me to reply as the Director of the Office for National Statistics to your recent question on unemployment of those aged 18 to 24 years.
Please note that information on the destination of leavers from the claimant count is only available since January 1995, therefore this information has only been provided for the last two years. Also, this information only includes those claims that were terminated with a known destination. Approximately 25 per cent. of all terminated claims have an unknown destination.
The results are shown in the attached tables.
Number of people aged 18-24 years who had been claimant unemployed for more than six months, who left because they had found work, 1995-96, Great Britain

Year	Number of people (thousands)
1995	163.5
1996	152.2




Source:

JUVOS leaving marker file.




Number of people aged 18-24 years crossing the six month duration threshold, 1992-96, Great Britain

Year	Number of people (thousands)
1992	479.8
1993	472.8
1994	402.1
1995	362.6
1996	327.4




Source:

JUVOS Cohort (April 1997).

Mr. Paice: To ask the Chancellor of the Exchequer (1) how many persons aged 18 to 24 years are currently seeking and available for work; [1649]

(2) how many persons aged 18 to 24 years who are currently registered unemployed have never been employed; [1651]

(3) how many persons aged 18 to 24 years are currently registered unemployed; [1647]

(4) how many persons aged 18 to 24 years who are seeking work are also undertaking part or full-time study. [1650]

Mrs. Liddell: The information requested falls within the responsibility of the Chief Executive of the Office for National Statistics. I have asked him to arrange a reply to be given.

Letter from Tim Holt to Mr. James Paice, dated 3 June 1997:

The Chancellor of the Exchequer has asked me to reply as the Director of the Office for National Statistics to your four recent questions (1647, 1649, 1650 and 1651) about 18 to 24 year olds in the labour market asking how many are: (1) registered unemployed, (2) currently seeking and available for work, (3) registered unemployed who have never been employed (4) seeking work and also undertaking part or full-time study.

The ONS produces two measures of unemployment. The first, derived from the quarterly Labour Force Survey (LFS), is defined on an internationally-recognised consistent basis set out by the International Labour Organisation (ILO) and counts as unemployed people who are:
(a) without a paid job;

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(b) available to start work within the next two weeks and
(c) have either looked for work in the past four weeks or are waiting to start a job already obtained.
ONS also publishes the monthly claimant count, which is based on the UK administrative system and includes all people claiming unemployed-related benefits at Employment Service offices on the day of the monthly count, who on that day had signed on as unemployed and available to do any suitable work. All people who attend an Employment Service office to sign are counted, irrespective of whether they are actually receiving unemployment-related benefits.
Both measures are described and compared in the ONS booklet How Exactly is Unemployment Measured?, a copy of which is enclosed with this reply. This booklet is also available in the House of Commons Library.
A total of 421,656 18 to 24 year olds were registered unemployed (claimant unemployed) in the UK in April 1997. This compares with an estimate of 551,000 18-24 year olds ILO unemployed according to the autumn 1996 Labour Force Survey. The group you refer to in your first question "currently seeking and available for work" is broadly the same as the ILO definition of unemployment except that this also includes those who are waiting to start a job they have already obtained.
No information is available from the claimant count about those registered unemployed who have never been employed. According to the autumn 1996 Labour Force Survey there were an estimated 179,000 18-24 year olds who were ILO unemployed and had never had a paid job. 38,000 of these were in full-time education and therefore not eligible to claim unemployment related benefits.
An estimated total of 127,000 18-24 year olds not in employment had been seeking work within the past four weeks and undertaking full or part-time study according to the autumn 1996 UK LFS. Of these 95,000 were ILO unemployed (ie seeking and available to start work within the next two weeks or waiting to start a job already obtained). The rest are categorised as economically inactive because they were not available to start work within two weeks. 79,000 out of the above total of 127,000 said that they were looking for part-time work. It may be assumed that many of these would be planning to combine their studies with part-time work, although they cannot be separately identified.

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