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Written Answers to Questions
Thursday 23 January 2003
TREASURY
New Taxes
15. Mrs. Roe: To ask the Chancellor of the Exchequer what estimate he has made of the annual cost to business of new taxes introduced since May 1997. [92747]
John Healey: The net effect of the Government's Corporation Tax changes introduced since 1997 is to reduce the corporate tax burden on business. We now have the lowest corporation tax rates in UK history. We have introduced a series of targeted measures, including tax credits for R&D to reward entrepreneurship.
Tax Credits
16. Andrew Selous: To ask the Chancellor of the Exchequer what assessment he has made of the costs of introducing tax credits. [92748]
Dawn Primarolo: Through the new tax credits the Government is investing £13 billion in supporting families of which £2.7 billion is additional to what is already available. No government has spent so much on children and families.
Interest Rates
17. Mr. Viggers : To ask the Chancellor of the Exchequer if he will make a statement on the recent effect of interest rates upon the balance of payments. [92749]
Ruth Kelly: It is difficult to isolate the specific effect of interest rate movements on the balance of payments. However, the Government's strong macroeconomic framework has delivered economic stability and historically low interest rates so that the UK economy is well placed to benefit as the pace of global recovery picks up.
Manufacturing
19. Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer, what estimate he has made of the annual cost to manufacturing businesses of taxes and regulations introduced since May 1997. [92751]
Dawn Primarolo: The net effect of the Government's Corporation Tax changes introduced since 1997 is to reduce the corporate tax burden on business. We now have the lowest corporation tax rates in UK history. We have introduced a series of targeted measures, including tax credits for R&D to reward entrepreneurship.
The Government is committed to ensuring that regulations are fair and effective, so that they protect the vulnerable but do not stifle enterprise or productivity.
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In August 1998, the Government introduced Regulatory Impact Assessments (RIAs) to develop a more open system of assessing the risks, costs and benefits of new legislative proposals. A thorough regulatory impact assessment is required for all new regulations that impact on business, charities or the voluntary sector.
21. Joyce Quin: To ask the Chancellor of the Exchequer what assessment he has made of the trends in manufacturing industry throughout the United Kingdom in the last year. [92753]
John Healey: After achieving its fastest rate of output growth for six years in 2000, the past two years have clearly been difficult for the manufacturing sector, not just in the UK but across the industrialised world. Nonetheless, the domestic macroeconomic stability that this Government's policies have put in place, together with our wide range of policies designed to improve productivity and enterprise, offer solid foundations for manufacturers to build on when the recovery in the world economy gathers pace.
European Stability and Growth Pact
22. Mike Gapes: To ask the Chancellor of the Exchequer if he will make a statement on his policy concerning reform of the European Stability and Growth Pact. [92754]
Ruth Kelly: This Government has consistently made clear that it supports a prudent interpretation of the Stability and Growth Pact, which takes into account the economic cycle, sustainability and the important role of public investment. A prudent interpretation of the Stability and Growth Pact will provide a long-term solution and strengthen fiscal discipline. We continue to discuss this with our EU colleagues.
South America
23. Brian White: To ask the Chancellor of the Exchequer, what assessment the International Monetary Fund has made of the current economic situation in South America. [92755]
Ruth Kelly: The latest IMF assessment of economic developments and prospects in Latin America was in its 'World Economic Outlook', published in September 2002. That showed 2002 was a difficult year, with an estimated fall in GDP of 0.6 per cent. for the region, but a recovery is expected during 2003. Growth rates experienced in 2002 varied widely, but countries with sound policy frameworks were generally better able to withstand the period of uncertainty.
Global Economy
Helen Jones: To ask the Chancellor of the Exchequer, what recent discussions he has had on the participation of the poorest countries in the global economy; and if he will make a statement. [92752]
John Healey: Overcoming economic marginalisation and integrating the poorest countries into the global economy is vital to securing the economic growth required to meet our Millennium Development Goal of halving the proportion of people living in extreme poverty by 2015.
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We will continue to engage the international community on this issue as we have done over the past year through the G7 and G8, the EU, and the IMF and World Bank—supporting their proposals for high-level dialogue between potential investors and developing country governments. Yesterday, the Chancellor of the Exchequer addressed key corporate figures as well as NGO leaders and developing country representatives, when he spoke at a Chatham House conference on the role of the private sector in developing countries through increased levels of investment, improved accountability and strategic and consultative engagement in the wider development context.
Today, the Chancellor and the Secretary of State for International Development are publishing their detailed proposals for an International Finance Facility to release $50 billion a year in additional aid flows for investment in developing countries. This additional support will help poor countries put in place the reforms required to attract increased private sector investment.
Annuities
Mr. Hunter: To ask the Chancellor of the Exchequer if he will take steps to bring rules governing investment-linked annuities into line with those already in operation for pensioners in income drawdown. [91556]
Ruth Kelly: On 17 December the Government published, for consultation, simplification proposals for the pension tax rules. The consultation paper, "Simplifying the taxation of pensions: increasing choice and flexibility", is available in the House of Commons Library. The consultation is to allow people the opportunity to put forward their views before final decisions are taken.
The consultation paper puts forward a proposed framework of general benefit rules within which new retirement products can be developed consistent with the requirement to annuities by age 75. These rules will apply to both annuities and drawdown products.
Mr. Hunter: To ask the Chancellor of the Exchequer (1) if he will take steps to enable new providers to take over the payment of conventional annuities; [91557]
- (2) if he will make it his policy to enable with-profits annuitants to transfer to other annuity providers. [91555]
Ruth Kelly: Tax legislation does not prevent the transfer of liability to pay an annuity to a different provider so long as the terms of the annuity are not altered. It is a matter of contract between the parties whether this can occur at the request of the annuitant.
Bank of England
Mr. Laws: To ask the Chancellor of the Exchequer what his latest estimate is of the value of the Bank of England's land and buildings at (a) Threadneedle Street, London, (b) other London addresses and (c) other UK addresses, based on (i) the valuation for existing use and (ii) the highest valuation for alternative use; and if he will make a statement. [92515]
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Ruth Kelly: As at 30 November 2002, the existing use value of the Bank of England's land and buildings (including fixed plant) in the respective locations is:
These figures reflect a professional valuation as at 28 February 2001 by Insignia Richard Ellis, plus the cost of subsequent additions, less depreciation.
Valuations for alternative uses are not available. These figures are unaudited.
Mr. Laws: To ask the Chancellor of the Exchequer what his latest estimate is of the value of the fixed assets of the Bank of England; and what date these estimates were made; and if he will make a statement. [92516]
Ruth Kelly: A valuation of the tangible fixed assets of the Bank of England, as at 28 February 2002, was included in the Bank's Annual Report, laid before Parliament on 23 May 2002.
Census
Mr. Pickles: To ask the Chancellor of the Exchequer what margin of error is officially regarded as acceptable for the 2001 census in (a) inner city areas and (b) rural areas; and if he will make a statement. [92496]
Ruth Kelly: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from L. Cook to Mr. E. Pickles, dated 23 January 2003:
- As National Statistician and Registrar General for England and Wales I have been asked to reply to your recent question to the Chancellor of the Exchequer asking what margin of error is officially regarded as acceptable for the 2001 Census in (a) inner city areas and (b) rural areas. (92496)
- I published the margins of error, also known as confidence intervals, when the first results from the 2001 Census were released on 30 September 2002 for England and Wales (and inner city and rural areas.)
- For England and Wales as a whole, the 95 per cent confidence interval (the range within which the true population would fall for 95 per cent of the times the sample was repeated) was plus or minus 0.2 per cent or 104,000 people. For local authority areas the percentage margins of error are larger, ranging from 6.1 per cent in Luton to 0.6 per cent in Dudley, East Dorset and Redcar and Cleveland.
- All Census population estimates have been subject to rigorous quality assurance which followed an agreed strategy which had been the subject of wide consultation with census users. The population of each local authority by age and sex was considered in a consistent and detailed manner—this involved comparison against diagnostic ranges derived from rolled-forward population estimates and aggregated administrative sources (such as Birth Registration and Pensions data).
- The quality assurance process means that the census figures are the best estimates we can provide for the population and they are all within acceptable confidence intervals.
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- Of importance also to confidence in census results is that we can explain changes and unusual results. There is insufficient cohesion between the measures of the various contributors to intercensal change in the United Kingdom. This is not acceptable to many users.
- We are reviewing at present our methods of measuring external migration, and I have initiated a review to identify what we can do to estimate more effectively the population between censuses in areas of large change from sources we cannot measure well.
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