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12 Dec 2002 : Column 469W—continued
Defence Contingency Fund
33. Harry Cohen: To ask the Chancellor of the Exchequer if he will make a statement on the additional contingency fund set aside in his pre-Budget statement for defence purposes. [85283]
Mr. Boateng: The #1 billion special reserve is available to cover costs of military and overseas operations this year to ensure the UK can continue to play a leading role in the global war against terror.
No decisions have been taken about any future UK military contribution in the Middle East, although prudent contingency planning is taking place. Indeed no UK contribution will be needed if Saddam complies with UNSCR 1441.
#1 billion represents a prudent allocation at this time but makes no assumption about the nature of any UK contribution to international efforts in Iraq or elsewhere.
12 Dec 2002 : Column 470W
Africa (Poverty)
34. Jeff Ennis: To ask the Chancellor of the Exchequer if he will make a statement on what action he is taking to combat poverty in Africa. [85284]
John Healey: This year the UK has given special attention to Africa. At the G8 summit in June, members endorsed a new partnership for Africa's development. We share with African leaders the vision that a new outlook is needed and will require a strong commitment to reform and sustained political leadership by Africa itself. In turn, developed countries must share the benefits of globalisation, ensuring Africa can benefit from the opportunities it provides. The UK is taking forward actions in all the areas covered by the G8 Africa action plan as part of our ongoing international development efforts. And the 2002 Spending Review established, for the first time, a #1 billion annual bilateral programme for Africa by 2005–06.
National Insurance
35. Mr. Pike: To ask the Chancellor of the Exchequer what figures he estimates would be paid to the Treasury if the ceiling on national insurance contributions for employees were abolished. [85285]
Dawn Primarolo: The Government Actuary's Department estimate the full-year yields from abolishing the upper earnings limit on National Insurance Contributions to be #3.8 billion in 2002–03 and #4.3 billion in 2003–04.
These estimates are based on the November 2002 pre-Budget report.
Mortgage Rates
36. Mr. Neil Turner: To ask the Chancellor of the Exchequer what the monthly interest payments on a standard rate mortgage of #40,000 over 25 years was in (a) June 1997 and (b) June 2002. [85286]
Ruth Kelly: The information is as follows:
| June 1997 | June 2002 | |
|---|---|---|
| Average building society rates | 6.98 per cent. | 5.02 per cent. |
| Monthly interest payments | #232.67 | #167.33 |
| Annual repayments | #2,792 | #2,008 |
Mr. Webb: To ask the Chancellor of the Exchequer what assessment he has made of the proportion of new mortgage lending in each of the last 12 months has been at (a) variable and (b) fixed rates; and if he will make a statement. [86988]
Mr. McNulty: I have been asked to reply.
The percentage of new mortgage lending in each of the past 12 months where the initial rate of interest has been (a) variable and (b) fixed as follows:
Source:
ODPM Survey of Mortgage Lenders
12 Dec 2002 : Column 471W
It should be noted that most mortgages taken out at an initial fixed rate of interest will revert to a variable rate of interest after a fixed period of time, unless of course the borrower then chooses to remortgage at another fixed rate of interest.
The figures in the table are based on a variable sample of new mortgages ranging from 15,000 to 30,000 per month.
Bermuda
Mr. Brady : To ask the Chancellor of the Exchequer why his Department omitted Bermuda from its list of Caribbean overseas territories submitted to the December meeting of ECOFIN in the document Savings-Report from the United Kingdom. [87201]
Dawn Primarolo: In accordance with the conclusions of the European Council of Santa Maria da Feira in June 2000, before the savings directive can be adopted, the UK is required to give sufficient reassurances that its associated or dependent territories listed in the conclusions would adopt the same measures as EU member states. These territories are the Channel Islands, the Isle of Man, and the Caribbean Overseas Territories. Bermuda is not included in the list of dependent or associated territories agreed at the Feira European Council.
Cayman Islands
Mr. Graham Brady: To ask Mr Chancellor of the Exchequer what assessment he has made of the likely implications for movement of capital into and out of Cayman Islands financial institutions as a result of compliance with the EU Draft Savings Directive if Switzerland (a) agrees and (b) does not agree to be bound by the directive. [83395]
Dawn Primarolo: The European Council meeting in Santa Maria de Feira on 20 June 2000 agreed that adoption of the EU draft Directive on Taxation of Savings was dependent on the EU receiving sufficient reassurances that relevant dependent or associated territories will adopt the same measures as EU Member States, and that six named third countries will adopt equivalent measures. The list of third countries includes Switzerland. The UK has sought the necessary reassurances from the dependent and associated territories only on the basis that equivalent measures are agreed with the named third countries.
The impact of the Directive on any jurisdiction will depend on a range of factors, including the volume of undeclared savings income that EU residents hold in the jurisdiction concerned.
12 Dec 2002 : Column 472W
Charities
Bob Russell: To ask the Chancellor of the Exchequer if he will reduce the level of VAT levied on works to buildings owned by charities. [85263]
John Healey: There is no VAT on the construction or purchase of new buildings that charities intend to use for residential or non-business purposes or as village halls. Long-standing formal agreements with our European partners do not enable us to introduce any new zero rates or a reduced rate of VAT for other works to existing non-residential buildings.
Government Borrowing
Mr. Flight : To ask the Chancellor of the Exchequer what assessment he has made of the effect of Government borrowing on commercial borrowing rates. [86673]
Mr. Boateng: There is some evidence to suggest that Government borrowing affects their cost relative to wholesale commercial borrowing rates (as measured by swap spreads). However, there is no clear-cut evidence of a significant impact of Government borrowing on commercial borrowing rates.
Landfill Tax
Mr. Weir: To ask the Chancellor of the Exchequer how much he forecasts will be raised (a) in the UK and (b) in Scotland from the landfill tax in each financial year from 2002–03 to 2006–07. [86758]
John Healey: Projected landfill tax receipts for the UK in 2002–03 and 2003–04 are shown in Table B12 of pre-Budget report 2002 (Cm 5664), and are #0.5 billion and #0.7 billion, respectively. For the financial years 2004–05 and 2006–07 projected landfill tax receipts for the UK are included in Xother taxes and royalties" in Table B11, and are not recorded separately.
Projected landfill tax receipts for Scotland are not available separately.
Mr. Weir: To ask the Chancellor of the Exchequer how much has been raised (a) in the UK and (b) in Scotland by the landfill tax in each financial year since 1997–98. [86759]
John Healey: Cash receipts from the landfill tax are shown in the Office for National Statistics publication XFinancial Statistics". Landfill tax was introduced on 1 October 1996. Since 1 April 1997 the annual yield from landfill tax in the UK is as follows:
| Cash receipts (# million) | |
|---|---|
| 1997–98 | 361 |
| 1998–99 | 333 |
| 1999–2000 | 430 |
| 2000–01 | 461 |
| 2001–02 | 505 |
Separate data on the amount of landfill tax revenue raised in Scotland are not available.
12 Dec 2002 : Column 473W
Local Government Finance
Mr. Flight: To ask the Chancellor of the Exchequer how much central Government funding was given to local government in each year since 1997 (a) in total and (b) for each local authority. [86668]
Mr. Raynsford: I have been asked to reply.
The amount of central Government funding that was given to local government in total in each year since 1997 is set out in the following table.
| Revenue grants(22) | Capital grants(23) | |
|---|---|---|
| 1997–98 | 35.9 | 1.3 |
| 1998–99 | 37.8 | 1.2 |
| 1999–2000 | 40.0 | 1.2 |
| 2000–01 | 43.1 | 1.3 |
| 2001–02 | 45.2 | 2.0 |
| 2002–03 | 48.0 | 2.5 |
(22) 1997–98 to 2000–01 are outturn figures. 2001–02 and 2002–03 are budgeted figures.
(23) 1997–98 to 2000–01 are outturn figures. 2001–02 and 2002–03 are provisional figures.
Source:
1997–98 to 2000–01 RO and COR forms, 2001–02 and 2002–03 RA forms, 2001–02 CPR4 form and 2002–03 CER form.
The figures for individual local authorities have been placed in the Library of the House.
Revenue funding consists of Revenue Support Grant, redistributed Non-Domestic Rates, Principal Formula Police Grant, SSA Reduction Grant, Central Support Protection Grant, GLA General Grant and Specific Grants within Aggregate external finance. Capital funding consists of Central Government Grant. Funding to the housing revenue account is not included.
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