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Climate Change Levy

David Maclean: To ask the Chancellor of the Exchequer, pursuant to his answer of 19 July 2001, Official Report column 412, to the hon. Member for Arundel and South Downs (Mr. Flight), on what date officials of HM Customs and Excise first met to consider the charging of VAT on climate change levy liabilities; and how many times they have subsequently met. [6876]

Mr. Boateng: Customs officials did not meet on this specific issue. The law requires that the value on which value added tax is calculated is the total amount of money to be given in exchange for a supply. This amount includes tax, and since the inception of VAT it has been calculated on the excise duty inclusive value of sales of goods such as petrol, alcohol and tobacco. The levy follows this long-established principle.

Mr. Lidington: To ask the Chancellor of the Exchequer what his latest estimate of the yield from climate change levy is in (a) 2001–02, (b) 2002–03 and (c) 2003–04. [7660]

Mr. Boateng: The latest published forecast of the yield for climate change levy in 2001–02 is set out in the Financial Statement and Budget report published on 7 March 2001. A routine forecast will be published in this autumn's pre-Budget report.

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Departmental Properties

Mrs. May: To ask the Chancellor of the Exchequer what the guidelines are for Government bodies, including and distinguishing between Departments, Next Steps agencies and non-departmental public bodies, with regards to purchasing leases for properties. [7806]

Mr. Andrew Smith: Guidelines for the acquisition of properties can be found in the Estates Services Guide (ESG), which is published by the Office of Government Commerce (OGC). The ESG offers Government users on the Civil Estate good practice guidance on estate management, including the acquisition of office accommodation by leasing and other means. It does not provide advice on residential or agricultural property. The ESG is made freely available to Government Departments, Next Steps agencies and non-departmental public bodies.

Equitable Life

Mr. Gardiner: To ask the Chancellor of the Exchequer if he will establish a scheme to compensate policyholders of Equitable Life for losses sustained by them as a result of regulatory failure. [6977]

Ruth Kelly: We have no plans to do so. The Government believe that the right course of action is to have an independent inquiry to ensure that the lessons are learned from what has happened. That is why we have asked Lord Penrose to examine the circumstances leading to the current situation at Equitable Life and to identify any lessons to be learned for the conduct, administration and regulation of life assurance.

Mr. Gardiner: To ask the Chancellor of the Exchequer what discussions the FSA held with Equitable Life about their decision to cut the value of with-profits pensions by 16 per cent. [6624]

Ruth Kelly: Decisions about the value of with-profits policies are a matter for the Board of Equitable Life. I understand that the FSA and the society have regular meetings to discuss a range of regulatory issues.

Peter Bottomley: To ask the Chancellor of the Exchequer what estimates he has made of the amount and likelihood of public liability in the case of Equitable Life. [7410]

Ruth Kelly: None.

Mr. Chope: To ask the Chancellor of the Exchequer if the Penrose inquiry will investigate allegations of maladministration by the DTI and Treasury in relation to regulation of Equitable Life; and if he will make a statement. [7289]

Ruth Kelly: The scope of the inquiry being conducted by Lord Penrose is a matter for him, subject to his terms of reference.

The terms of reference are

"To inquire into the circumstances leading to the current situation of the Equitable Life Assurance Society, taking account of relevant life market background; to identify any lessons to be learnt for the conduct, administration and regulation of life assurance business; and to give a report thereon to Treasury Ministers."

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Mr. Chope: To ask the Chancellor of the Exchequer what target date has been given to Lord Penrose for the completion and publication of his report. [7287]

Ruth Kelly: The timing of the report into the findings of his inquiry is a matter for Lord Penrose. It is expected that the inquiry will report in the second half of next year.

Mr. Chope: To ask the Chancellor of the Exchequer (1) when a decision will be taken on the date of publication of the report by the FSA into Equitable Life; [7290]

(2) when the Treasury will receive the report of the FSA into Equitable Life. [7285]

Paddy Tipping: To ask the Chancellor of the Exchequer (1) when he received the Financial Services Authority's report on Equitable Life; and when he will publish this report; [7540]

(2) what issues he will take into account in deciding whether to publish the Financial Services Authority's report on Equitable Life. [7541]

Ruth Kelly: The Treasury received the FSA Report last week and is carefully considering it. The report will be published shortly.

Mr. Chope: To ask the Chancellor of the Exchequer if Lord Penrose will be working full-time in the conduct of the inquiry of which he is chairman. [7286]

Ruth Kelly: Yes. Lord Penrose is working full-time on the inquiry.

Mr. Chope: To ask the Chancellor of the Exchequer when Lord Penrose began work on his inquiry into Equitable Life; and what resources have been made available to him. [7288]

Ruth Kelly: Lord Penrose began work immediately after the announcement on 31 August that he would carry out an inquiry.

All the resources he considers necessary are available to him.

Business Investment

Mr. Redwood: To ask the Chancellor of the Exchequer what his forecast of the level of business investment is for (a) 2002 and (b) 2001. [7651]

Ruth Kelly: Updated forecasts for the UK economy will be published in this autumn's pre-Budget report.

Pheasants

Norman Baker: To ask the Chancellor of the Exchequer what steps he takes to ensure (a) pheasant- rearing operations and (b) pheasant shooting do not avoid (i) business rates and (ii) VAT through misclassification as agricultural practices; what estimate he has of the revenue each year from these sources; and if he will make a statement. [7250]

Mr. Boateng: The Valuation Office and Customs and Excise are responsible for ensuring compliance with the tax rules on business rates and VAT respectively. A valuation tribunal recently confirmed that pheasant-rearing operations are not agricultural and are therefore rateable, but shooting rights have not been

15 Oct 2001 : Column: 852W

treated as rateable since 1997. The sale of pheasants reared in a game hatchery is zero-rated for VAT. The granting of shooting rights is standard-rated, except when included with land sold exempt from VAT.

Estimates of the revenue each year from these sources are not readily available.

Food Sales (VAT)

Mr. Laws: To ask the Chancellor of the Exchequer if it is his policy that hot food sold by supermarkets should be charged at the standard rate of value added tax. [6076]

Mr. Boateng: Food heated for the purpose of being consumed as hot food is charged at the standard rate of VAT.

Child Poverty

Mr. Frank Field: To ask the Chancellor of the Exchequer by how much would the Government have to increase (a) Working Families Tax Credit and (b) child benefit to achieve each of the Government's targets on child poverty using the Government's macro-economic assumptions and assuming that the proportion of children living in households below 60 per cent. of median household income otherwise remained the same. [6357]

Dawn Primarolo: The Government's third annual anti-poverty report "Opportunity for All" was published in September. The report shows encouraging progress against a range of indicators.

The Government's strategy is both to tackle current issues and to break the cycle of poverty and disadvantage for the long term. This requires action beyond the WFTC and child benefit. The strategy includes: ensuring a decent family income—with work for those who can and extra support for those who cannot; access to excellent public services; targeted interventions for those with additional needs and at key stages in life; and harnessing the power and expertise of the voluntary and community sector.

Balance of Payments Deficit

Mr. Redwood: To ask the Chancellor of the Exchequer what his latest forecast is for the balance of payments deficit for 2001. [7646]

Ruth Kelly: The Government will publish updated forecasts for the UK economy in this autumn's pre-Budget report.

Mr. Howard: To ask the Chancellor of the Exchequer what representations he has received on the balance of payments deficit and its consequences for the economic outlook. [7945]

Ruth Kelly: Treasury Ministers receive representations from a wide range of organisations and individuals on economic issues, and value their insights.

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