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TREASURY

Public Expenditure

Mr. Mitchell: To ask the Chancellor of the Exchequer what account is taken in calculating the percentage of public expenditure and its control within the deficit limits of the Maastricht Treaty convergence criteria of that part of public investment projects co-funded by national or local government and funds of the European Community; and if he will place in the Library documents showing the relevant methodology and the outturn calculations for the last available three financial years. [5565]

Mr. Darling: The Maastricht Treaty convergence criteria set a reference level for the general government financial deficit of 3 per cent. of gross domestic product. All general government investment expenditure is included in the calculation of the deficit, irrespective of source of funding, as are net contributions to the European Union.

Local Government Finance (EU)

Mr. Gorrie: To ask the Chancellor of the Exchequer which countries in the EU include local authority self-financed expenditure or an equivalent category in their national control total or its equivalent. [8195]

Mrs. Liddell: The Treasury does not hold comprehensive information about the budgetary control totals of other member states. All countries in the EU measure the General Government Financial Deficit, which takes account of local authorities' current and capital expenditure on sectors outside general government.

Pensioners (Tax Credits)

Mr. Gibb: To ask the Chancellor of the Exchequer what estimate he has made of (a) how many pensioners with no tax liability reclaimed a tax credit on dividends paid in 1996-97 and (b) the average amount re-claimed. [7555]

Dawn Primarolo: The latest available information is derived from 1995-96 Survey of Personal Incomes. It is estimated that some 300,000 non-taxpayers aged 65 or over made claims, averaging £75, for payment of the tax credit on dividends paid in 1995-96.

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Budget (Environmental Impact)

Mr. Dafis: To ask the Chancellor of the Exchequer if he will publish his assessment of the environmental impact of tax and spending charges outlined in his Budget. [8347]

Dawn Primarolo: It is estimated that the net effect of the increase in the road fuel duty escalator from 5 to 6 per cent. (assuming this is applied for the life of this Parliament), the reduction in VAT on domestic fuel and power, and abolition of the gas levy will be to reduce carbon emissions by 2010 by around 2 million tonnes annually. A number of other tax changes--including the reduction in VED for low emission buses, and the freeze in road fuel gas duty--will also reduce emissions, but effects will be dependent on take up. The Environmental Task Force, set up as part of the New Deal for the unemployed, will help in meeting the Government's target for heat conservation and efficiency, and thus will also help in reducing emissions.

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer when he intends to publish the Green Book on the environmental implications of the Budget. [8674]

Dawn Primarolo: There are no plans to publish such a "Green Book" for the recent Budget which was not a full Budget. Information on the environmental implications of the Budget is contained in the Financial Statement and Budget Report--the "Red Book"--and in further press notices issued on Budget day.

Mr. Taylor: To ask the Chancellor of the Exchequer if he will list those proposals in the Budget which may lead to (a) a reduction and (b) an increase in carbon dioxide emissions in the United Kingdom; if he will estimate by how much carbon dioxide emissions will change in each case; and if he will make a statement. [8636]

Dawn Primarolo: It is estimated that the increase in the commitment to increase road fuel duties from an average of at least 5 per cent. a year in real terms to 6 per cent., will--if maintained for the life of this Parliament--produce additional savings, by the year 2010, of around 2½ million tonnes carbon annually; the reduction in VAT on domestic fuel and power will increase emissions in 2010 by around 0.24 million tonnes carbon; the cut in the gas levy will have a minimal effect.

Strip Searches

Dr. Lynne Jones: To ask the Chancellor of the Exchequer what criteria are used by Customs and Excise officers to determine reasonable grounds for suspicion prior to strip searching; and if there is a code of practice by which officers can be held accountable. [8524]

Dawn Primarolo: Customs and Excise follow the Police and Criminal Evidence Act 1984 Code of Practice on intimate and strip searches.

Dr. Jones: To ask the Chancellor of the Exchequer what proportion of people strip searched in the custody of Customs and Excise officers (a) were not charged with any offence and (b) were not subsequently convicted of any offence, in each of the last three years. [8522]

Dawn Primarolo: Information in the form requested is not readily available.

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Environmental Taxation

Mr. Dafis: To ask the Chancellor of the Exchequer if he will set up a green tax commission to advise him on the subject of environmental taxation. [8346]

Dawn Primarolo: The statement of intent on environmental taxation, issued at the time of the Budget, said that "the Government will explore the scope for using the tax system to deliver environmental objectives". In taking this forward the Government will consult on potential environmental taxes on a case by case basis, for example as it is now proposing to do on measures to reduce water pollution. The Government has no present plans to establish a Green Tax Commission.

Advance Corporation Tax

Mr. Colvin: To ask the Chancellor of the Exchequer what consultations took place between his Department and the pensions industry prior to changes to advance corporation tax in the Budget. [7648]

Dawn Primarolo: None, as it would not have been appropriate to do so at that stage as indications to this possibility would have been market sensitive.

Minister for Trade and Competitiveness in Europe

Mr. Redwood: To ask the Chancellor of the Exchequer if he will list the meetings involving discussion of the Budget attended by the Minister for Trade and Competitiveness in Europe; and what (a) papers and (b) correspondence were circulated to him on the Budget prior to the Budget statement. [7426]

Mr. Gordon Brown: Lord Simon took no formal part in the pre-Budget decision process and attended no formal Budget meetings. No Budget correspondence was circulated to him.

Local Authority Pension Funds

Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer what representatations he has received from local authorities about the removal of dividend tax credits from their pension funds. [8137]

Dawn Primarolo [holding answer 11 July 1997]: We have received some representations from local authorities on this point.

Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer if he will estimate the effect of local authority-funded pension schemes of the removal of dividend tax credits. [8136]

Dawn Primarolo [holding answer 11 July 1997]: The extent to which the abolition of payable tax credits will affect contributions to the local government pension schemes will depend on the overall judgment made by schemes' actuaries when undertaking the next actuarial valuation.

Gas Levy

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer what are the estimated savings per week resulting from the abolition of the gas levy for (a) the

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average household, (b) those in the lowest decile of income distribution, (c) those in the highest decile of income distribution and (d) old age pensioners. [8652]

Dawn Primarolo: The estimated average savings from the proposed reduction of the gas levy to zero from April 1998 are given in the following table.

Household typeSaving (£ per week)As a percentage of net income
Average household0.100.03
Households in the lowest income decile0.100.09
Households in the highest income decile0.150.02
Pensioners0.100.05

Figures for pounds per week gain are rounded to the nearest 5p. Household incomes are adjusted for differences in composition before allocating households to deciles of net income.


Tax Evasion (Construction Industry)

Mr. Sheerman: To ask the Chancellor of the Exchequer what estimate he has made of the annual loss of revenue caused by tax and national insurance evasion in the construction industry; what plans he has to reduce that evasion; and what additional resources he will deploy for that purpose. [8686]

Dawn Primarolo: There is no official estimate of the loss of revenue caused by evasion in the construction industry, or any means of arriving at a reliable estimate. Legislation contained in the 1995 and 1996 Finance Acts will greatly reduce the opportunities for evasion by bringing considerably more subcontractors within the scheme for deductions on account and tax and national insurance contributions and by requiring them to carry registration cards. A new computer system is being developed to support the scheme. Additional resources have also recently been made available to help to enforce compliance within the construction industry.


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