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Building Societies

Ms Keeble: To ask the Chancellor of the Exchequer if he will make a statement about Government policy on mutuality, with special reference to the Nationwide Building Society; and what assessment he has made of the possible impact on homeowners of building societies converting into banks. [2981]

Mrs. Liddell: The Government welcomes diversity and competition in the mortgage market, where both the mutual building societies and plc banks provide a range of varied and innovative products.

As only one building society has converted to a bank before this year, it is too early to say what the impact on homeowners will be.

Ms Drown: To ask the Chancellor of the Exchequer if he will make a statement on the long term impact (a) on interest rates for homeowners and savers and (b) on choice of lending and saving institutions, of mutual building societies converting into banks. [2985]

Mrs. Liddell: As all but one of the societies converting to banks are either about to do so, or have done so very recently, it is too early to say what the long term impact on interest rates for homeowners and savers will be.

11 Jun 1997 : Column: 446

The Government welcomes diversity and competition amongst lending and saving institutions, whatever their constitution.

Christian Aid: Change the Rules Campaign

Mr. Wallace: To ask the Chancellor of the Exchequer how many individual contributions of £1 coins the Treasury has received in the last 12 months from supporters of Christian Aid's Change the Rules campaign; and what he proposes to do with the sum contributed. [2837]

Mrs. Liddell [holding answer 10 June 1997]: The Government has received a total of £3,624.67 as of 10 June. All the money received as part of the £1 coin campaign is being paid into the Consolidated Fund at the Bank of England and will be used to provide additional debt relief for Tanzania.

Public Sector Borrowing Requirement

Mr. Campbell-Savours: To ask the Chancellor of the Exchequer whether NHS trust and health authority deficits, actual and projected, have been included in the public sector borrowing requirement calculation for (a) 1995-96, (b) 1996-97 and (c) 1997-98. [2207]

Mr. Darling [holding answer 6 June 1997]: Outturns for the public sector borrowing requirement in 1995-97 and 1996-97 cover the cash borrowing requirements of all public sector bodies, including NHS Trusts and health authorities. The forecast of the public sector borrowing requirement for 1997-98 made in the last Budget was based on the previous Government's spending plans. It included the planned borrowing of NHS trusts and assumed that health authorities' expenditure remained within their allocated cash limit.

Income Tax

Mr. Jack: To ask the Chancellor of the Exchequer for a married taxpayer with earned income and no other income of (i) £5,000, (ii) £10,000, (iii) £15,000 and (iv) £20,000 and a single taxpayer with earned income and no other income of (a) £5,000, (b) £10,000 (c) £15,000 and (d) £20,000, how much they would gain each week from the introduction of a 10p starting rate of income tax on the first (1) £1,000, (2) £1,500, (3) £2,000, (4) £2,500 and (5) £3,000 of taxable income to replace the first £2,000 of the current 20p income tax band while leaving all other tax rate bands and allowances unchanged. [1859]

Dawn Primarolo [holding answer 2 June 1997]: Based on the right hon. Member's assumptions, the weekly gains from a new 10p starting rate of income tax are given in the table. 1997-98 allowances and rates are used.

Gain per week (£) Width of 10p band

Earnings
	£1,000	£1,500	£2,000	£2,500	£3,000
£5,000	1.84	1.84	1.84	1.84	1.84
£10,000	1.92	2.88	3.85	4.81	5.77
£15,000	1.92	2.88	3.85	4.81	5.77
£20,000	1.92	2.88	3.85	4.81	5.77

11 Jun 1997 : Column: 447

Mr. Jack: To ask the Chancellor of the Exchequer how much reserve would be forgone by the introduction of a starting rate of income tax at 10p on the first (a) £1,000, (b) £1,500, (c) £2,000, (d) £2,500 and (e) £3,000 of taxable income to replace its first £1,000, £1,500, £2,000, £2,500, £3,000 respectively, of its current 20p income tax band, while leaving all other tax rate bands and allowances unchanged. [1860]

Dawn Primarolo [holding answer 2 June 1997]: The estimated full-year costs, based on the right hon. Member's assumptions and assuming that all other allowances and tax rates in 1997-98 are left unchanged, are given in the table:

New 10p starting rate on first	Full year cost at 1997-98 income levels (£ billion)
£1,000	2.5
£1,500	3.6
£2,000	4.8
£2,500	5.9
£3,000	6.9

Mr. Jack: To ask the Chancellor of the Exchequer with a starting rate of income tax at 10p on respectively the first £1,000, £1,500 to £2,000; £2,500, £3,000 of taxable income replacing the first £1,000, £1,500, £2,000, £2,500 and £3,000 of the current 20p income tax band, at what starting point of taxable income the basic rate would have to be set to ensure no overall loss of tax receipts either in the year of assessment for which these changes were made or in either of two following years. [1875]

Dawn Primarolo [holding answer 2 June 1997]: Based on the right hon. Member's assumption of no loss of tax revenue in a full year, the basic rate limit would need to be set at the levels given in the table. These assume 1997-98 income levels and that all other allowances and tax rates in 1997-98 are unchanged.

New 10p starting rate on first	Value of basic rate limit
£1,000	£21,100
£1,500	£19,400
£2,000	£18,000
£2,500	£16,850
£3,000	£15,850

To repeat the same analysis in terms of no overall loss of tax receipts in 1997-98 and the following two years could be provided only at disproportionate cost.

Mr. Jack: To ask the Chancellor of the Exchequer by how much the basic rate limit would have to be reduced to ensure that with a starting rate of tax of 10p on the first (a) £1,000, (b) £1,500, (c) £2,000, (d) £2,500 and (e) £3,000 of taxable income to replace the first £1,000, £1,500, £2,000, £2,500 and £3,000 respectively, of the current 20p income tax band, while leaving all other tax rate bands and allowances unchanged, nobody currently paying tax at the higher rate of 40p would experience any reduction in their aggregate income tax liability. [1858]

11 Jun 1997 : Column: 448

Dawn Primarolo [holding answer 2 June 1997]: Based on the right hon. Member's assumptions that the higher rate taxpayers do not gain from a new 10p starting rate, the basic rate limit would be as shown in the table below.

Width of 10p band	Reduce basic rate limit to
(a) £1,000	£25,512
(b) £1,500	£25,218
(c) £2,000	£24,924
(d) £2,500	£24,629
(e) £3,000	£24,335

Mortgage Interest Tax Relief

Mr. Goggins: To ask the Chancellor of the Exchequer what estimate he has made of the cost of mortgage interest tax relief in (a) 1997-98, (b) 1998-99 and (c) 1999-2000. [1642]

Dawn Primarolo [holding answer 2 June 1997]: The estimated total cost of mortgage interest tax relief in 1997-98 is £2.4 billion. The estimate is based on the assumption, by convention, of no change from the latest available estimated average building society interest rate of 6.66 per cent. The cost of the relief in 1998-99 and 1999-2000 would depend on future interest rates, the future distribution of the number and value of outstanding mortgages.

Finance Bill

Ms Lawrence: To ask the Chancellor of the Exchequer when he plans to publish the Finance Bill; and when he will make notes on the Bill's clauses available to hon. Members. [3506]

Mr. Gordon Brown: We expect the Finance Bill to be published the day after the conclusion of the Budget debate. Explanatory Notes on the Bill's clauses will be placed in the Vote Office and the Libraries of the House that day. Members of the public will be able to obtain copies of the Explanatory Notes from the Treasury; these will also be available on the Treasury's internet site (http://www.hm-treasury.gov.uk).

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