Select Committee on Treasury First Report


  Inland Revenue: individual expenditure items:

    —  4.4 per cent growth in taxpayer numbers since 1998 Comprehensive Spending Review requiring an additional £25.3 million;

    —  10 per cent increase in claims for Working Families' Tax Credit (WFTC) since the 1999 Budget requiring an additional £11 million;

    —  £19.1 million for promotion of new initiatives to ensure government policy has maximum impact;

    —  an additional £14 million to cover a 3.5 per cent workload increase on National Insurance contributions and workstate problems from the delays implementing the NIRS2 system;

    —  £8 million for NIRS2 costs arising principally from the 1999 Budget;

    —  £15 million for work on the abolition of the Married Couples Allowance and the introduction of interim Children's Tax Credit. These were announced in the 1999 Budget and there is a significant additional cost in the current year to cover the handling of taxpayer enquiries, additional training, printing, postage etc;

    —  £12 million for preparatory work on integrated child credit (ICC) and employment tax credit (ETC) due to start in April 2003. The ICC will combine the Children's Tax Credit, the child elements in the Income Support and Jobseekers Allowances and WFTC/DPTC; and the ETC will extend the adult support in WFTC to all those in low paid work;

    —  £11 million for costs associated with electronic business between the Inland Revenue and its customers;

    —  £10 million for preparatory work on the implementation of the Euro. This sum of £10 million was announced in the Second Outline National Changeover Plan on Euro preparation, presented to the House of Commons by the Chancellor of the Exchequer on 9 March 2000.

4 July 2000

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