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Taxation and Duty
Mr. Luff: To ask the Chancellor of the Exchequer if he will list on a comparable basis the levels of taxation and duty on (a) petrol, (b) cigarettes and (c) beer in each of the EU member states. [3550]
Dawn Primarolo:
The information requested for petrol and beer is given in the table.
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| Leaded petrol | Unleaded petrol | Beer at 4 per cent. abv | ||||
|---|---|---|---|---|---|---|
| Excise duty (pence per litre) | VAT (per cent.) | Excise duty (pence per litre) | VAT (per cent.) | Excise duty (£ sterling per hectolitre) | VAT (per cent.) | |
| Austria | n/a | 20.00 | 29.73 | 20.00 | 11.94 | 20.00 |
| Belgium | 40.57 | 21.00 | 36.69 | 21.00 | 14.09 | 21.00 |
| Denmark | n/a | 25.00 | 31.94 | 25.00 | 28.34 | 25.00 |
| Finland | n/a | 22.00 | 38.45 | 22.00 | 95.31 | 22.00 |
| France | 44.15 | 20.60 | 41.18 | 20.60 | 8.44 | 20.60 |
| Germany | 39.63 | 15.00 | 35.96 | 15.00 | 6.44 | 15.00 |
| Greece | 28.79 | 18.00 | 25.05 | 18.00 | 10.22 | 18.00 |
| Ireland | 32.77 | 21.00 | 29.22 | 21.00 | 64.14 | 21.00 |
| Italy | 40.88 | 19.00 | 37.60 | 19.00 | 11.35 | 10.00 |
| Luxembourg | 28.66 | 15.00 | 24.92 | 12.00 | 6.52 | 15.00 |
| Netherlands | 42.43 | 17.50 | 37.77 | 17.50 | 13.17 | 17.50 |
| Portugal | 35.90 | 17.00 | 33.41 | 17.00 | 9.28 | 17.00 |
| Spain | 33.42 | 16.00 | 25.74 | 16.00 | 6.36 | 16.00 |
| Sweden | n/a | 25.00 | 34.72 | 25.00 | 55.96 | 25.00 |
| UK | 41.68 | 17.50 | 36.86 | 17.5 | 43.28 | 17.50 |
Comparable figures for cigarettes are not available.
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Private Health Insurance
Mr. Waterson: To ask the Chancellor of the Exchequer what percentage of taxpayers currently claiming tax relief for private medical insurance are over retirement age. [3628]
Dawn Primarolo: In 1994-95, the latest year for which information is available, it is estimated that about three-quarters of the individuals covered by private medical insurance contracts on which tax relief is claimed are over retirement age, that is, men aged 65 or over or women aged 60 or over.
Mr. Gibb:
To ask the Chancellor of the Exchequer how many people currently benefit from tax relief on medical insurance. [3520]
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Mr. Waterson:
To ask the Chancellor of the Exchequer how many tax payers are currently claiming tax relief in respect of private medical insurance. [3629]
Dawn Primarolo:
I refer the hon. Member to the answer given to the hon. Member for East Ham (Mr. Timms) on 13 March 1997, Official Report, column 322.
Mrs. May:
To ask the Chancellor of the Exchequer what consultations have been undertaken by Treasury Ministers and officials with the banking and retail industries, and the accountancy profession, on the preparations for the introduction of a single currency. [3530]
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Mrs. Liddell:
Treasury Ministers and officials meet regularly with representatives of the banking, retail and accounting sectors to discuss a wide range of issues.
The Bank of England has been involved in consultations with the financial sector on a number of issues surrounding the implications of the introduction of a European single currency. The Bank provides information, primarily targeted at the financial sector, through the publication of a quarterly bulletin entitled "The Practical Issues Arising from the Introduction of the Euro".
Mrs. May:
To ask the Chancellor of the Exchequer what assessment his Department has made of the cost to the Government of the introduction of a European single currency. [3539]
Mrs. Liddell:
The Government will assess the implications of EMU for jobs, investment and growth in the United Kingdom. In making that assessment, the cost to Government of joining EMU is one of many aspects which will be taken into account.
Mr. Luff:
To ask the Chancellor of the Exchequer what estimate his Department has made of the elasticity of demand for (a) unleaded petrol, (b) cigarettes, and (c) beer. [3545]
Dawn Primarolo:
The estimated own price elasticities, based on a computer model produced by the Institute of Fiscal Studies, are -0.272, -0.201, and -0.963 for petrol, tobacco and beer respectively.
Mr. Heald:
To ask the Chancellor of the Exchequer what are the estimated reductions in weekly household income in each household income decile group which would result from the withdrawal of mortgage interest relief. [3562]
Dawn Primarolo:
Information for 1997-98 is given in the table. The estimates are based on information projected from the 1994-95 family expenditure survey and are therefore provisional.
| Household income decile group | Average weekly reduction for households with a mortgage |
|---|---|
| £ | |
| Lowest ten per cent. | (9)-- |
| Second | 1.30 |
| Third | 2.30 |
| Fourth | 3.70 |
| Fifth | 4.50 |
| Sixth | 4.60 |
| Seventh | 4.90 |
| Eighth | 5.00 |
| Ninth | 5.00 |
| Highest ten per cent. | 5.20 |
(8) Household income is defined as income from all sources less income tax payments and National Insurance contributions.
(9) Insufficient data to provide a reliable estimate.
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VAT (Fuel)
Mr. Streeter: To ask the Chancellor of the Exchequer if he will assess the impact on retirement pensioners of reducing VAT on fuel to 5 per cent. [3552]
Dawn Primarolo: The average household would save £18 per year from a reduction in VAT on domestic fuel and power from 8 per cent. to 5 per cent., pensioners will benefit most in proportion to income.
Mr. Ruffley: To ask the Chancellor of the Exchequer what will be the financial impact on the average household of a reduction in the rate of VAT levied on domestic fuel to 5 per cent. [3682]
Dawn Primarolo: The average household would benefit by £18 per year from a reduction in VAT on domestic fuel and power from 8 per cent. to 5 per cent.
Inland Revenue Offices
Mr. Luff: To ask the Chancellor of the Exchequer what plans he has to review the network of Inland Revenue offices; and if he will make a statement. [3548]
Dawn Primarolo: The Inland Revenue has now completed four years of its 10 year programme to restructure its network of local offices. Ministers together with the Board of Inland Revenue are currently considering how to take the programme forward.
Mr. Harvey: To ask the Chancellor of the Exchequer what are the terms of the leases of Inland Revenue offices which are undergoing closure; and what penalty clauses will apply if the new office structure plan goes ahead. [4903]
Dawn Primarolo: The Inland Revenue has offices in hundreds of buildings throughout the United Kingdom. Some buildings are Crown property, others are leasehold and the terms of each occupation are the subject of separate negotiation and agreement. The costs, including any penalties for vacating premises ahead of lease breaks are always fully taken into account as part of the overall appraisal.
Mr. Harvey: To ask the Chancellor of the Exchequer when the conclusions of the new office structure plan phase 3 for Inland Revenue offices will be published; and if he will make a statement. [4904]
Dawn Primarolo: The Inland Revenue has embarked on a major programme of change which includes restructuring its local office network over a number of years. The restructuring programme, which is scheduled to take 10 years to complete, is now in its fifth year. Ministers are currently considering with the Board of the Inland Revenue how to take the programme forward.
Mr. Harvey: To ask the Chancellor of the Exchequer how many Inland Revenue offices have been refurbished; and what has been the total cost to public funds under the inland Revenue new office structure plan of the (a) closure and (b) transfer of offices. [4907]
Dawn Primarolo:
The Inland Revenue's programme to restructure its network of local offices was designed to be implemented in three stages from January 1993 to around 2002. When implementation of the second stage is completed during 1998, some 167 new-style offices will have replaced 387 old-style offices. The total cost of
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setting up these 167 new-style offices, all of which will be in new or refurbished accommodation, will be £107 million. Set against these costs, the programme will have delivered running cost savings reaching £35 million per annum in 1997-98 rising to about £50 million per annum by 2002.
Mr. Harvey:
To ask the Chancellor of the Exchequer if he will list the savings and costs identified under the Inland Revenue new office structure plan phase 3 in respect of the (a) Penzance, (b) Launceston, (c) Barnstaple and Bideford, (d) Truro, (e) Torquay, Newton Abbot and Paignton, (f) Wells, (g) Frome and (h) Bridgewater offices; and if he will list the criteria used in each office to identify costs and savings. [4906]
Dawn Primarolo:
The Inland Revenue has embarked on a major programme of change which includes restructuring its local office network over a number of years. The restructuring programme, which is scheduled to take 10 years to complete, is now in its fifth year. Ministers are currently considering with the Board of Inland Revenue how to take the programme forward. A full investment appraisal in accordance with normal Treasury rules will be required before detailed individual proposals can be considered for approval.
Mr. Harvey:
To ask the Chancellor of the Exchequer if the proposals contained in the new office structure plan phase 3 currently before the Board of Inland Revenue can proceed in instances where changes produce negative savings. [4905]
Dawn Primarolo:
The Inland Revenue has embarked on a major programme of change which includes restructuring its local office network over a number of years. The programme, which is scheduled to take 10 years to complete, is now in its fifth year. At the outset, the Board of Inland Revenue agreed with Ministers that the overall programme should deliver a high rate of financial return.
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