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17 Sept 2003 : Column 866W—continued
Tax Credits Computer
Mr. Willetts: To ask the Chancellor of the Exchequer on how many occasions since January 2003 the tax credits computer system has stopped working. [125404]
Dawn Primarolo: IT system supporting the new tax credits did not work initially as well as we expected and there was unscheduled down time as a result. The Inland Revenue worked urgently with their IT partners to improve the system's availability, speed and stability, and it has been performing much better for a number of months.
Unpaid Taxes
Mr. Laws: To ask the Chancellor of the Exchequer what his latest estimate is of the annual revenue cost of removing the Crown's preferential right to recover unpaid taxes, in each year from 2001–02 to 2005–06; and if he will make a statement. [130122]
Dawn Primarolo: The latest estimate of the annual revenue cost of removing the Crown's preferential rights in respects of taxes etc in insolvencies is:
| £ million | |
|---|---|
| 2001–02 | nil |
| 2002–03 | 10 |
| 2003–04 | 65 |
| 2004–05 | 70 |
| 2005–06 | 70 |
Removal of Crown preference was one of a number of measures introduced in the Enterprise Act 2002 to make the insolvency regime more supportive of enterprise, and is designed to bring real benefits to unsecured creditors, including many small firms.
VAT (Historic Buildings)
Lady Hermon: To ask the Chancellor of the Exchequer what plans he has to exempt the cost of restoring historic buildings from VAT; and if he will make a statement. [129836]
John Healey [holding answer 15 September 2003]: Our long-standing formal agreements with out European partners allow us to keep our zero rates as they currently stand, but do not allow us to extend them or to introduce new ones.
The Government are particularly concerned about the position of listed places of worship. That is why we asked the European Commission to bring forward proposals to extend the categories of permitted reduced VAT rates to include their repair, maintenance and improvement. We are continuing to press this case during the current EU review of reduced rates and have, in the meantime, introduced the Listed Places of Worship Grant Scheme to provide an equivalent reduction in the cost of these repair projects.