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Civil Servants
Dr. David Clark: To ask the Chancellor of the Exchequer what was the average percentage increase in salaries of non-industrial civil servants, excluding members of the senior Civil Service, in his Department for 1999-2000; and to what extent the pay awards were staged. [121647]
Mr. Timms: The headline pay settlement for HM Treasury was 2.5 per cent. on the paybill and, together with the additional funds from staff turnover, staff in post received performance related increases averaging 4.7 per cent. The increases were not staged.
Contributions Agency
Mr. Sarwar: To ask the Chancellor of the Exchequer how many civil servants over the age of 60 years employed by the Contributions Agency have been required to retire following its transfer from the Benefits Agency to the Inland Revenue; and at which centres they were based. [121322]
Dawn Primarolo: Prior to the transfer of the staff and functions of the former Contributions Agency (CA) to the Inland Revenue on 1 April 1999, the CA operated a normal retirement age of 60 for all staff. As part of the transitional arrangements on moving over to this policy, extensions of service had been agreed for some staff, up to a maximum retention date of 31 July 1999.
As part of the terms and conditions package negotiated with the relevant trade unions and accepted by CA staff by way of ballot, the Revenue undertook to honour any extensions of service agreed by 31 March 1999. Thus, post transfer, any individual who had been granted an extension by that date was retained by the Revenue until the expiry of that period.
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As was the case for CA, the Revenue also operated a normal retirement age of 60. The agreed terms of the negotiated package provided that, after transfer, former CA staff would be retired in line with the Revenue retirement age policy, subject to the commitment on extensions of service granted prior to 31 March 1999.
Since the transfer on 1 April 1999, the following numbers of former CA staff have been required to retire.
| Location | Normal retirement at age 60 | Retirements over age 60 | Total number of retirees |
|---|---|---|---|
| BMSD | 1 | 0 | 1 |
| IR East | 2 | 7 | 9 |
| IR London | 3 | 18 | 21 |
| IR North West | 1 | 4 | 5 |
| IR Scotland | 0 | 1 | 1 |
| IR South West | 2 | 4 | 6 |
| IR South East | 1 | 2 | 3 |
| IR South Yorkshire | 0 | 1 | 1 |
| IR Wales and Midlands | 1 | 2 | 3 |
| LBO | 1 | 0 | 1 |
| NICO (Newcastle upon Tyne) | 17 | 51 | 68 |
| IR North | 1 | 1 | 2 |
| Totals | 30 | 91 | 121 |
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Tax Rates
Mr. Willetts: To ask the Chancellor of the Exchequer, pursuant to his answer of 5 April 2000, Official Report, column 500W, on tax rates, if he will provide illustrative examples of cases where taxes and benefits can interact to produce a marginal deduction rate of (a) 40 per cent. and above, (b) 50 per cent. and above, (c) 60 per cent. and above, (d) 70 per cent. and above, (e) 80 per cent. and above and (f) 90 per cent. and above. [120381]
Dawn Primarolo: A marginal deduction rate (MDR) measures how much of an additional pound of earnings is paid in taxes or in reduced benefit or tax credit entitlement. The table gives some examples of the combinations of income tax and National Insurance for those on income-related benefits or WFTC that give rise to marginal deduction rates of 40 per cent. or more. All the examples assume that National Insurance is payable, at the contracted-in rate.
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| Marginal deduction rate (per cent.) | Illustrative examples |
|---|---|
| 40 to less than 50 | Basic rate taxpayer on Council Tax Benefit taper |
| 50 to less than 60 | Non-taxpayer on WFTC taper |
| 60 to less than 70 | Basic rate taxpayer on WFTC taper |
| 70 to less than 80 | Basic rate taxpayer on Council Tax Benefit and WFTC tapers |
| 80 to less than 90 | Basic rate taxpayer on Housing Benefit and WFTC tapers |
| 90 to less than 100 | Basic rate taxpayer on Housing Benefit, Council Tax Benefit and WFTC tapers |
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Government Payment Targets
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer what Government policy is on the timing of payments of their contractors and suppliers; what length of time between delivery or invoice and payment is proposed in Government guidelines; and what action is taken to monitor whether targets are met. [122522]
Mr. Andrew Smith: The timing of payments is set out in guidance to Departments and requires payment to be made promptly to contractors and suppliers in accordance with agreed terms of contract. Where no contract exists, payments should be made within 30 days of receipt of a valid invoice.
The payment performance of Government Departments is monitored annually and reported to Parliament by the Department of Trade and Industry before the summer recess.
Open Government
Dr. David Clark: To ask the Chancellor of the Exchequer how many applications for information he received under the Open Government: Code of Practice on Access to Government Information in the last parliamentary session; and how many were granted. [121857]
Miss Melanie Johnson: I refer my right hon. Friend to the answer given today by my right hon. Friend the Home Secretary, Official Report, columns 216-17W.
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Manufacturing
Mr. Ian Taylor: To ask the Chancellor of the Exchequer if he will make a statement on his policies for promoting manufacturing business. [121375]
Mr. Andrew Smith: Manufacturing industry makes a vital contribution to the economy. We are helping its competitiveness by creating the right economic climate of stability, low inflation, and sound public finances and through policies which help firms to innovate, develop the skills of their workforce and grow.
Taxation
Mr. Gibb: To ask the Chancellor of the Exchequer if he will publish the amounts (i) in current prices, (ii) in constant 1999-2000 prices and (iii) as percentages of personal income, taken by (a) income taxes, (b) national insurance contributions, (c) value-added tax, (d) other central Government indirect taxes, (e) the aggregate of (a) to (d), (f) average council tax payments and (g) the aggregate of (a) to (d) and (f) for (1) a single person, (2) a married couple without children, both working and (3) a married couple with two children, husband in work, wife not working, in each case at 50, 75, 100, 150 and 200 per cent. of average earnings for the financial year 1999-2000, taking account of changes announced in his Budget Statement and previously announced changes and for each of the years (w) 1996-97, (x) 1997-98, (y) 1998-99 and (z) 1999-2000. [116508]
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer what average level of income he estimates a single-earner couple will receive (a) gross and (b) net in
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(i) 2000-01 and (ii) 2001-02; if he will set out the method used in making this calculation; and if he will make a statement. [118850]
Mr. Portillo: To ask the Chancellor of the Exchequer what taxes he includes in his calculation of the tax burden on the average family. [121009]
Dawn Primarolo [holding answer 14 April and 5 May 2000]: The available information, which shows income tax (including child benefit and working families tax credit from its first full year of implementation) and national insurance contributions, at multiples of median full-time earnings of all employees is given in the table. The figures are shown in (a) current prices and (b) as percentages of income, for (i) the years 1996-97 to 2001-02 where the figures take account of all changes announced in Budgets to date. Estimating the impact of indirect taxes is imprecise as spending patterns vary widely between households with the same composition and income. The level of council tax payments will also vary depending on where families live.
The figures use median all-employee earnings. However, the data are available only since 1983. Looking over a longer time period, using male mean earnings, the series shows that as a result of personal tax and benefit measures in the last three Budgets the tax burden on a family with two children on 100 per cent. of average earnings will fall by 2001 to the lowest level since 1972.
Notes:
1. Income tax payments are calculated on the basis that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay Class 1 national insurance contributions at the contracted-in rate.
2. Earnings are taken to be the median gross weekly earnings of all full-time employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean male full-time earnings.)
3. A family with two children is assumed to have both children aged under 11.
4. In line with the convention in the Tax Benefit Reference Manual, Child Benefit is treated as negative income tax.
5. Working Families Tax Credit is included from its first full year of implementation in 2000-01.
6. For the two earner family it is assumed earnings are split 60 per cent.:40 per cent.
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