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6 Oct 2003 : Column 1101W—continued

Road Pricing

Mr. Kidney: To ask the Chancellor of the Exchequer what progress he has made in the development of a scheme for charging road hauliers for road use; and when he expects to implement the scheme. [130966]

John Healey: "Modernising the taxation of the haulage industry—lorry road-user charge—Progress Report Two", published on 6 May 2003 and available in the Library of the House, described the Government's plans to develop the lorry road-user charge, alongside an offsetting cut in hauliers' fuel duty. Since then Customs and Excise have been working very closely with the haulage industry and with other stakeholders to refine the detailed requirements of the Charge. This is necessary before the tendering process can begin.

The charge is a new and complex development, and it will therefore be some time before we will be certain about when it can be introduced.

The Government and the haulage industry want to ensure that the Charge will work reliably and as intended when it goes live. In the meantime our plan remains to introduce the Charge in 2006.

Mr. Kidney: To ask the Chancellor of the Exchequer whether he intends that British road hauliers will have to pay vehicle excise duty for individual lorries when he implements the scheme for road use charges. [130967]

John Healey: The Government stated in "Modernisation the taxation of the haulage industry: progress report two", published in May 2003, that when introduced the distance based lorry user charge will be offset though tax cuts in fuel duty.

Decisions about vehicle excise duty for lorries will be made separately by the Chancellor as part of the normal Budget decision making process.

Sweden (Euro Referendum)

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer what reports he has commissioned on the euro campaign in Sweden. [130043]

Ruth Kelly [holding answer 17 September 2003]: None. However, the Government continually monitor economic and political developments in other economies.

Tax Credits

Mr. Webb: To ask the Chancellor of the Exchequer pursuant to his answer to the hon. Member for Galloway and Upper Nithsdale (Mr. Duncan) of 3 July 2003, Official

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Report, column 377W, on tax credits, how many written appeals against tax credit decisions for (a) disagreements about award notices and (b) reporting changes in circumstances have been received in each of the last six months; and of those, how many were found to be in favour of the appellant. [126545]

Mr. Dhanda: To ask the Chancellor of the Exchequer (1) what action he is taking to reduce the length of time it takes for the Inland Revenue to make a decision on appeals about the level of tax credit awarded; [128212]

(2) what assessment he has made of the length of time it takes for the Inland Revenue to make a decision on appeals about the level of tax credit awarded. [128213]

Dawn Primarolo: Up to the end of August, when over 4.6 million claims were in payment, less than 0.5 per cent. had had written correspondence classified as CTC or WTC appeals. Over half of these appeals had been settled by 31 August.

The Inland Revenue has increased the resources allocated to handling appeals against tax credit awards. This has had a significant impact on its handling of appeals, in further improving the rate at which appeals are settled.

Mr. Webb: To ask the Chancellor of the Exchequer how many claims for compensation in relation to the delivery of the child and working tax credits have been received; and how many have been (a) processed, (b) successful and (c) unsuccessful. [128749]

Dawn Primarolo: The information is not available in the form requested.

Dr. Cable: To ask the Chancellor of the Exchequer how many letters to the Inland Revenue from right hon. and hon. Members about working family tax credit applications were awaiting a reply on 31 August; how many of those were over (a) 30 days old and (b) 60 days old; and if he will make a statement. [128802]

Dawn Primarolo: At mid-September 2003 there were no letters from right hon. and hon. Members about working families tax credit applications awaiting a reply.

Clive Efford: To ask the Chancellor of the Exchequer what the total paid out since May 1997 to increase family incomes has been; and what has been the average gain per family (a) in the UK and (b) in Eltham. [129432]

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Dawn Primarolo: Total benefit and tax credit expenditure directed at children from 1997–98 to 2003–04 (in 2003–04 prices) is estimated at £106 billion. The real terms increase in annual spending on financial support for children over this period is 87 per cent.

As a result of personal tax and benefit measures on average families with children in the UK are £1,200 better off in real terms this year compared with 1997–98. It is not possible to estimate the equivalent gain for families living in Eltham.

Mr. Laws: To ask the Chancellor of the Exchequer what estimate he has made of the effect on employment of the working tax credit; and if he will make a statement. [130016]

Dawn Primarolo [holding answer 16 September 2003]: The working families' tax credit was designed to improve work incentives and help families move into employment, and evaluation findings will be published in due course. Building on the success of WFTC, the new working tax credit is a further step in improving in-work support for low earners.

Tax Rates

Mr. Laws: To ask the Chancellor of the Exchequer what his estimate is of the revenue yield from introducing a rate of tax of (a) 50 per cent. and (b) 45 per cent. on (i) incomes over £100,000 per annum, (ii) taxable incomes over £100,000 per annum, (iii) incomes over £150,000 per annum, (iv) taxable incomes over £150,000 per annum and (v) capital gains over £100,000 per annum; and if he will make a statement. [130138]

Dawn Primarolo: We are compiling comprehensive information on income tax which we expect to publish on the Inland Revenue website shortly. A copy will be placed in the Library of the House.

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The full-year capital gains yields from introducing a rate of tax of (a) 50 per cent. and (b) 45 per cent. on incomes over £100,000 per annum are £100 million and £50million respectively.

Thalidomide Trust

Mr. Rooney: To ask the Chancellor of the Exchequer what meetings he has had with the Thalidomide Trust in the last 12 months; and what advice and assistance he has offered to the Trust. [131302]

Dawn Primarolo: I met representatives of the Thalidomide Trust on 18 December 2002. Subsequently, Inland Revenue officials visited the Trust to offer direct advice and assistance on a number of issues, including tax repayment and access to tax credits.

Treasury Growth Forecasts

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what assessment he has made of the accuracy of Treasury growth forecasts over the last three years. [129084]

Mr. Boateng: In recent years, Treasury forecasts of GDP growth have outperformed the average of independent forecasts (as included in "Forecasts for the UK Economy—A comparison of independent forecasts", HM Treasury).

VAT

Lembit Öpik: To ask the Chancellor of the Exchequer what steps he is taking to preserve the zero rate of UK VAT for (a) children's clothing and (b) motorcycle safety helmets under European Commission proposals to revise reduced rates of value added tax (COM(2003) 397 final); and if he will make a statement. [129134]

Dawn Primarolo: We have made clear that the European Commission's proposals as they currently stand are unacceptable.

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FOREIGN AND COMMONWEALTH AFFAIRS

Burundi

Ms Oona King: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the situation in Burundi; what actions his Department is taking to support the peace process; and if he will make a statement. [130690]

Mr. Mullin: The latest round of talks between the FDD (Nkurunziza) and the Government of Burundi in Dar es Salaam ended on 16 September without agreement. It is not clear how the regional initiative will now respond.

The British Government is committed to supporting the Arusha process and the transitional Government institutions. We have given extensive support to South African Vice President Zuma and his facilitation team. We are also supporting the African Mission in Burundi, both financially and politically.

Colombia

Mr. Evans: To ask the Secretary of State for Foreign and Commonwealth Affairs what support he has offered President Uribe to assist in the safe return of the two British people taken hostage by terrorist guerrillas in Colombia. [131245]

Mr. MacShane: We welcome the news of Mathew Scott's escape from his captors in Colombia and are continuing our efforts to secure the release of Mark Henderson, the other Briton who was among those abducted in the Sierra Nevada National Park on 12 September. We have offered help from British police kidnap specialists to the Colombian government. Embassy staff in Santa Marta are also liaising closely with the Colombian authorities involved in the search for the hostages. We have stressed throughout the incident the need for the safety of the hostages to be put above all other considerations.

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