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TREASURY

Prudential Assurance Company

Mrs. Spelman: To ask the Chancellor of the Exchequer when he expects the talks initiated in March 1996 between his Department and the Prudential Assurance Company regarding a modification of 10 per cent. distributable surplus to reach an outcome. [122487]

Miss Melanie Johnson [holding answer 16 May 2000]: When discussions of this kind take place and a conclusion is reached, the company concerned makes an

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announcement. Information about proposals of this kind may be confidential or price sensitive, and therefore subject to statutory restrictions on disclosure.

Departmental Vehicles

Mr. Pearson: To ask the Chancellor of the Exchequer how many (a) cars and (b) commercial vehicles operated by his Department were manufactured (i) in the UK, (ii) in the EU and (iii) elsewhere. [122264]

Mr. Timms: All vehicles operated by the Treasury are provided by the Government Car and Dispatch Agency (GCDA). GCDA are an agency of the Cabinet Office and I refer my hon. Friend to the answer given today by my right hon. Friend the Minister of State, Cabinet Office.

NIRS2

Mr. Flynn: To ask the Chancellor of the Exchequer what assessment he has made of the total cost of the difficulties encountered with the NIRS2 computer system; and what percentage of that cost will be recouped from Andersen Consulting. [122104]

Dawn Primarolo [holding answer 15 May 2000]: Andersen Consulting has worked with the Inland Revenue to resolve the problems experienced with the NIRS2 system. All the costs in undertaking this work have been met by Andersen Consulting. The cost to Andersen Consulting is approximately £20 million.

Tax Rates (Businesses)

Mr. Pollard: To ask the Chancellor of the Exchequer what plans he has to extend to unincorporated small businesses the new lower 10 per cent. starting tax rate levied on the initial £10,000 business profits. [122357]

Dawn Primarolo: Unincorporated businesses are subject to income tax whereas small companies are subject to corporation tax. Income tax rates are applied to total income from all sources; therefore profits from unincorporated business activities are aggregated with an individual's other income, and the appropriate rates charged after deduction of personal allowances. A 10p income tax band was introduced in Budget 1999 and increased in Budget 2000. As with the whole tax system, this band is kept under constant review. Any future changes will be announced in the normal way.

Press Officers

Mr. Portillo: To ask the Chancellor of the Exchequer how many press officers were employed by the Treasury in (a) May 1997 and (b) May 2000. [122381]

Miss Melanie Johnson: In May 1997, HM Treasury employed 5 press officers (besides the Head of Communications) and at May 2000 the number is 5.5.

Working Families Tax Credit

Mr. Alexander: To ask the Chancellor of the Exchequer how many households in (a) Scotland and (b) Paisley, South which are eligible for the Working Families Tax Credit are (i) single parent families where the woman is the sole earner, (ii) single parent families

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where the man is the sole earner, (iii) couples, where the male is the sole earner, (iv) couples, where the female is the sole earner and (v) dual income families. [122371]

Dawn Primarolo: It is estimated that 98,800 families in Scotland have been awarded the Working Families Tax Credit to the end of March 2000, of which 1,400 were in Paisley, South.

The breakdown requested for Scotland is as follows:

Family typeNumber with Working Families Tax Credit awards at March 2000
Single parent--female earner61,100
Single parent--male earner2,100
Couple--male sole earner21,800
Couple--female sole earner8,500
Couple--both earning5,400
Total98,800

There are too few cases in the 5 per cent. sample used for these analyses to provide a complete breakdown for Paisley, South. It is estimated that 1,100 families with WFTC awards in Paisley, South were single parents where the woman is the sole earner.

VAT (Renovations and Conversions)

Mr. Bob Russell: To ask the Chancellor of the Exchequer what representations he has received in the past six months requesting that value added tax be (a) reduced and (b) removed on building renovations and conversions; and if he will make a statement. [122127]

Dawn Primarolo: Treasury Ministers have received about 5,550 letters since last November asking for changes to the rate of VAT on building, renovation and maintenance work. The vast majority of these letters have asked for a reduced rate rather than removal of VAT. The removal of VAT from repairs and renovations is illegal under agreements with our European partners.

Mr. Bob Russell: To ask the Chancellor of the Exchequer what plans he has to reduce the level of value added tax levied on building renovations and conversions; and if he will make a statement. [122121]

Dawn Primarolo: The Government have no present plans to introduce a reduced rate for building renovations and conversions.

Mortgage Tax Relief (Scotland)

Mr. Gorrie: To ask the Chancellor of the Exchequer what the total cost of mortgage tax relief was in Scotland in (a) 1996-97, (b) 1997-98, and (c) 1998-99; and what was the estimated cost in 1999-2000. [122087]

Miss Melanie Johnson: The estimated costs of mortgage interest relief in Scotland for 1996-97, 1997-98 and 1998-99 are published in Table 5.3 of "Inland Revenue Statistics 1999", a copy of which is in the House of Commons Library. The provisional figure for 1999-2000 is £130 million.

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Economic and Monetary Union

Mr. Gill: To ask the Chancellor of the Exchequer if he will list the estimates covering expenditure on the national changeover plan; and the dates on which they were approved by the House. [121811]

Miss Melanie Johnson: Details of expenditure on national changeover planning were included in the second Outline National Changeover plan which was published on 9 March. A copy of the Plan is in the Library of the House.

Mr. Gill: To ask the Chancellor of the Exchequer on what date and in which forum the decision was taken to proceed with a national changeover plan. [121809]

Miss Melanie Johnson: In his statement to the House in October 1997, my right hon. Friend the Chancellor of the Exchequer said that the Government would


The first Outline National Changeover Plan was presented to the House by the Prime Minister on 23 February 1999.

Indirect Taxation

Mr. Matthew Taylor: To ask the Chancellor of the Exchequer if he will place a copy of the document entitled, "The simulation of indirect tax reforms: the IFS simulation model for indirect taxation", in the Library. [121741]

Dawn Primarolo: A copy of "The simulation of indirect tax reforms: the IFS simulation model for indirect taxation", published by the Institute for Fiscal Studies in 1990, has been available in the House of Commons Library since 1995.

Funding (Wales)

Mr. Llwyd: To ask the Chancellor of the Exchequer what meetings his Department has had with the (a) National Assembly for Wales and (b) Office of the Secretary of State for Wales in relation to the Comprehensive Spending Review. [121738]

Mr. Andrew Smith: Officials from my Department meet officials from the National Assembly for Wales and the Office of the Secretary of State for Wales regularly to discuss a range of issues.

Contributions Agency

Mr. Sarwar: To ask the Chancellor of the Exchequer what changes have been made in the past year by the Contributions Agency in its policy on employment of civil servants between the ages of 60 and 65 years. [121321]

Dawn Primarolo: The Contributions Agency (CA), a former agency of the Department of Social Security (DSS), ceased to exist with effect from 1 April 1999 when, as part of the transfer arrangements with the Inland Revenue, all CA functions and associated staff moved across to the Revenue.

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Prior to the transfer with the Revenue the CA, in line with other Government Departments and agencies, had delegated responsibility to formulate their own retirement age policy. Their policy, operated under the central DSS policy framework, provided for a normal retirement age of 60 for all staff. As part of the transitional arrangements on moving to this policy, some staff had been granted extensions of service up to a maximum retention date of 31 July 1999.

As part of the negotiations prior to the transfer, the Revenue undertook to honour any commitments given to staff in respect of extension of service in place at 31 March 1999. This undertaking was embodied in the terms and conditions package negotiated with the relevant trade unions, and accepted by CA staff by way of a ballot. Thus after the transfer any former member of the CA who had been granted an extension of service was able to remain with the Revenue until the expiry of that extension, up to the maximum retention date of 31 July 1999. Where an extension was not agreed at 31 March 1999, then staff would subsequently retire in line with Revenue retirement age policy, which at the time of the transfer was similar to CA policy, in providing for a normal retirement age of 60.

The Revenue has recently introduced a concession to the normal retirement age of 60, whereby staff with less than 25 years pensionable service at age 60 may be retained until this level of pensionable service is attained, or reach age 65, whichever is the earlier. This concession was part of a package of terms and conditions changes attached to a Modernisation Agreement with the Public and Commercial Services Union (PCS) accepted as part of the revised 1999 pay offer. The concession took effect on 21 January 2000.

On a wider front, the Revenue is carrying out a review of its current retirement age policy and, following consultation with the relevant trade unions, any resultant policy changes will be announced in due course.


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