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Economic Activity

Sue Doughty: To ask the Chancellor of the Exchequer what rates of economic activity were recorded in each of the last five years in (a) the UK and (b) each region, broken down by (i) age and (ii) sex. [107430]

Ruth Kelly: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter from Len Cook to Sue Doughty, dated 7 April 2003:

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As National Statistician, I have been asked to reply to your Parliamentary Question about economic activity rates. (107430)
I am placing in the House of Commons Library, tables which give the information requested based on data from the Labour Force Survey (LFS). Table 1 shows estimates for the United Kingdom which have been interim reweighted to reflect the results of the 2001 Census. Comparable estimates for countries and regions within the UK will be available on 16 April 2003.
LFS estimates for Scotland, Wales, Northern Ireland and the regions of England are available based on population estimates which have not yet been adjusted to reflect the 2001 Census results. These LFS estimates are shown in Tables 2–6.

Energy Efficiency

Mr. Don Foster: To ask the Chancellor of the Exchequer (1) what fiscal measures or instruments he plans to use to encourage (a) registered social landlords, (b) private landlords, (c) local authorities and (d) other public bodies acting as landlords to install the most efficient heating systems in their properties; [106791]

(2) what plans he has to use (a) enhanced capital allowances and (b) other fiscal measures to assist energy services providers to contribute to the UK's environmental objectives; [106790]

(3) what fiscal measures and instruments he plans to use to encourage the installation of the most efficient heating systems in domestic properties. [106812]

John Healey: The Government have already introduced a range of measures to promote energy efficiency in the home. Budget 2000 reduced the rate of VAT to 5 per cent. on the grant-funded installation of new central heating systems and heating appliances. Budget 2002 extended the reduced rate of VAT to the grant-funded installation of factory-insulated hot water tanks, micro combined heat and power systems, and renewable energy heating systems in the homes of the less well-off.

Budget 2001 introduced 100 per cent. first-year enhanced capital allowances (ECAs) for designated energy-saving plant and machinery.

The ECA scheme enables businesses to write-off the whole cost of their investment in designated energy-saving equipment against the taxable profits of the period during which the investment is made. In the commercial sector, energy service companies can claim ECAs on their spending on qualifying equipment. Special rules enable them to claim allowances where, as part of a comprehensive energy services agreement, they provide equipment that becomes a fixture on another person's land in which they have no interest.

The Government's Affordable Warmth Programme supports the installation of modern energy efficient central heating systems in low- income homes, including registered social landlord homes. The equipment is leased to the landlord and where the equipment is designated energy-saving equipment. Special rules enable the lessor to claim the enhanced capital allowances. The benefit can be passed on in the form of lower rental charges.

The Government consulted on economic instruments to improve household energy efficiency during 2002 and a summary of responses has been published on the

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Treasury website. In his pre-Budget report in November 2002 the Chancellor announced that the Government will consult further on specific measures to promote greater energy efficiency by households, once the responses to the initial consultation have been fully considered.

The Government have also introduced other measures to improve energy efficiency and tackle fuel poverty in the domestic sector, including the Energy Efficiency Commitment (EEC) and Warm Front. This commitment requires gas and electricity suppliers to encourage and assist their domestic customers to reduce energy consumption and to meet targets for quantified energy savings. At least 50 per cent. of the benefits from the EEC currently go to households on income and disability related benefits.

Since its launch in June 2000, the Warm Front Scheme, which provides packages of insulation and heating measures worth up to £2,500 to private sector households in receipt of certain benefits, has assisted over half a million households, helping improve the comfort levels and living conditions of some of the most vulnerable members of society.

EU Directives

Mr. Bercow: To ask the Chancellor of the Exchequer if he will list the EU Directives and Regulations which have been implemented by his Department since 17 April 2002. [106827]

Ruth Kelly: The Treasury plays a leading role in the UK's EU policy on financial services and tax. Since 17 April 2002, the Treasury has led on the implementation of 10 Directives:

directive 2000/46/EC on the taking-up, pursuit of and prudential supervision of the business of electronic money institutions (implementation date: 27 April 2002);


directive 2000/28/EC, amending Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions (implementation date: 27 April 2002);


directive 2001/44/EC, amending Directive 76/308/EEC on mutual assistance for the recovery of claims resulting from operations forming part of the system of financing the European Agricultural Guidance and Guarantee Fund, and of agricultural levies and customs duties and in respect of value added tax and certain excise duties (implementation date: 24 July 2002);


directive 2000/31/EC on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market ('Directive on electronic commerce') (implemented by the Treasury as regards matters within the scope of the Financial Services and Markets Act 2000: implementation date: 21 August 2002);


directive 2000/26/EC on the approximation of the laws of the member states relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth Motor Insurance Directive) (implementation date: 19 January 2003);


directive 2001/78/EC of 13 September 2001 amending Annex IV to Council Directive 93/36/EEC, Annexes IV, V and VI to Council Directive 93/37/EEC, Annexes III and IV to Council Directive 92/50/EEC, as amended by Directive 97/52/EC, and Annexes XII to XV, XVII and XVIII to Council Directive

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93/38/EEC, as amended by Directive 98/4/EC (Directive on the use of standard forms in the publication of public contract notices) (implementation date: 4 February 2003);


directive 2002/38/EC and regulation 792/2002 regarding value added tax arrangements applicable to electronically supplied services and broadcasting;


directive 2002/10/EC concerning the structure and rates of excise duty applied on manufactured tobacco;


directive 2001/115/EC with a view to simplifying, modernising and harmonising the conditions laid down for VAT invoicing;


Commission decision 2001/574, following directive 95/60/EC, establishing a common fiscal marker for gas oils and kerosene.

I am not aware of any further directives being implemented since 17 April 2002, but the Department does not keep a central record of this information and it could be assembled only at disproportionate cost.

EC Regulations are, in general, directly applicable in the member states, without the need for further incorporation into national law. However, some Regulations require UK measures to make them workable and enforceable. Some Regulations enact small or technical amendments. As far as we have been able to verify, the number of Regulations implemented by HM Treasury since 17 April 2002 is three:

regulations (EC) No 1224/2002 and (EC) No 1643/2002, amending regulation (EC) No 310/2002 concerning certain restrictive measures in respect of Zimbabwe (implementation date: 31 October 2002);


regulation (EC) No 2560/2001 on cross-border payments in euro (implementation date: 25 March 2003).


ED directives and Regulations are published in the Official Journal of the European Communities, which can be found at http://europa.eu.int/eur-lex/en/.

Fair Trade

Mr. Barry Gardiner: To ask the Chancellor of the Exchequer if he will introduce concessions for Fair Trade companies for (a) capacity building activities and (b) capital investment programmes. [107736]

Dawn Primarolo: The Government are committed to supporting ethical trading wherever possible and provides significant support to the Fairtrade Foundation's efforts in promoting the supply and marketing of fair trade products. All taxes are kept under review and any proposals for new taxes and tax reliefs will be considered as part of the normal Budget process. Since 1997 the Government have introduced incentives to benefit all companies including, cuts in the rates of corporation tax and permanent 40 per cent. first year allowances.

Health Insurance

Mr. Ruffley: To ask the Chancellor of the Exchequer (1) what assessment he has made of the impact on low income families of his decision to end the tax exemption of trading surpluses of non-mutual, not-for-profit health cash plan providers; [105851]

(2) what representations he received from commercial insurers prior to ending the tax exemption of trading surpluses of non-mutual, not-for-profit health cash plan providers in relation to that change; [105850]

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(3) what tax revenue assumptions he made in deciding to end the tax exemption of trading surpluses of non-mutual, not-for-profit health cash plan providers. [105856]

John Healey: There has been no change to the underlying tax rules that are used when determining the mutual trading status of health cash plan providers. Tax exemption continues to apply to providers which meet the requirements for mutual trading or which have amended their constitutions and membership rules in order to comply with them.

The Inland Revenue reviewed the status of these organisations in 2000, following an inquiry which discovered that the conditions of mutual trading were not being met by some providers. During that review, the Inland Revenue considered whether the necessary legal requirements of mutuality were being met in cases where mutual trading had been claimed.

No representations were made to Treasury Ministers during the Inland Revenue review. Inland Revenue held discussions with the representative body of these providers, and offered not to apply the changed treatment retrospectively and to allow a grace period for the providers to decide how to operate in future. No assessment can be made of the impact of this review, which will depend on decisions taken by individual providers.

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