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3 Nov 2003 : Column 464W—continued
Aircraft Duties
Mr. Maude: To ask the Chancellor of the Exchequer (1) if he will list the rates of (a) duty and (b) VAT on fuel for (i) aircraft on international flights, (ii) aircraft on domestic flights, (iii) cars, (iv) buses and (v) trains; [135176]
- (2) if he will set out proposals for the future taxation of air travel, with particular reference to (a) duty on aviation fuel and (b) VAT on airline tickets in his next Pre-Budget Statement. [135177]
John Healey: Fuels duties are levied in accordance with fuel types and usage, and not be reference to the types of vehicle in which they are used. Customs and Excise Budget Notice 31/03, "Hydrocarbon Oils: Duty Rates", sets out the rates of duty applicable for different types of fuels, a copy of which is available in the Library of the House.
In the UK, VAT is charged at the standard rate of 17.5 per cent. on fuel used in cars, buses, trains and aircraft on domestic flights. Fuel used in aircraft on international flights is zero-rated.
Debt Reduction (Serbia and Montenegro)
Harry Cohen: To ask the Chancellor of the Exchequer when he expects The London Club to deliver on its agreement to 65 per cent. debt reduction for Serbia and Montenegro; what has been the reason for the delay in doing so to date; what negotiations are still going on regarding this matter; what assessment he has made of whether this commitment will be fulfilled; what would be the implication of non-fulfilment of The London Club's commitment for debt relief upon that agreed by The Paris Club; and if he will make a statement. [135442]
John Healey: The Government expects all creditors, including those creditor banks sometimes known as the "London Club", to agree a debt restructuring with Serbia and Montenegro comparable to that provided by the "Paris Club" of official creditors in November 2001. The Government understands that negotiations
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between the Serbia and Montenegro authorities and some creditors are continuing. We have made clear to the Serbian authorities that the UK Government supports the case for comparable treatment, although there are no UK banks among the leading private sector creditors.
Economic Forecasts
Mr. Howard: To ask the Chancellor of the Exchequer if he will publish the Treasury's quarterly estimates of the output gap since 1990; and whether the estimates have been revised since publication of the 2003 Budget Red Book. [135779]
Mr. Boateng: Treasury estimates of the output gap were published in Chart B4 on page 226 of the 2003 Financial Statement and Budget Report (HC 500). These estimates will be updated in the light of latest GDP data in the forthcoming Pre-Budget Report.
Gold Sales
Mr. Blunt: To ask the Chancellor of the Exchequer pursuant to his answer of 13 February 2003, to the hon. Member for Chesham and Amersham (Mrs. Gillan), Official Report, column 861W, on gold sales, what the precise proceeds were in US dollars of the sale of 395 tonnes of gold; and what the proceeds would have been at the afternoon fix on 31 October 2003. [135350]
Ruth Kelly: The total proceeds from the sale of 395 tonnes of gold were US$3,496 million. At the afternoon fix on 31 October 2003, the total value of this gold was US$4,908 million. The gold sales between July 1999 and March 2002 reflected a prudent decision to reduce over-exposure to a single asset in the net reserves portfolio. Thus, the difference between these two figures quoted do not represent the real financial impact of the sales, as the proceeds from the gold sales were invested in euro, dollar and yen interest-bearing assets that have also increased in value over this period. The gold sales reduced risk by around 30 per cent. (as measured by value-at-risk) and are not expected to deliver a loss in return when measured over the medium to long-term; the appropriate time horizon for such a decision.
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Golden Rule
Mr. Blunt: To ask the Chancellor of the Exchequer what assessment he has made of the extent of compliance with the golden rule until 1 June 2006 on the basis of his annual forecasts. [135347]
Mr. Boateng: As stated in Budget 2003:
- "The projections for the public finances show that the Government is firmly on track to meet its strict fiscal rules over the economic cycle, including in the cautious case, and while meeting its international and public spending commitments: the average current budget since the start of the current cycle in 1999–2000 is comfortably in surplus, ensuring the Government remains on track to meet the golden rule, using cautious assumptions and in the cautious case".
Mortgages
Mr. Gardiner: To ask the Chancellor of the Exchequer what discussions the Treasury has had with the Financial Services Authority about including the need for financial stress testing for consumers applying for mortgages. [136285]
Ruth Kelly: The Government legislated in June 2003 to give the Financial Services Authority responsibility for regulating mortgage business with effect from 31 October 2004. The detail of the regulatory regime for mortgages is a matter for the FSA.
However, we are aware that the FSA has recently published its new rules for mortgage sales. These rules, which take effect from 31 October next year, mean that:
- mortgage advisers have to recommend a mortgage that is suitable. Where they consider that the consumer will be unable to afford a mortgage the rules mean that they must not make any recommendation; and
regardless of whether or not advice is provided, mortgage lenders must be able to show that they took account of the consumer's ability to repay before agreeing to any mortgage.
Self-assessment
Mr. Webb: To ask the Chancellor of the Exchequer how many self-assessment forms have been issued in each of the last five years; and if he will make a statement on groups of people to whom the issue of forms has been extended since 1 January 1998. [135360]
Dawn Primarolo: The table shows the number of returns issued and gives a breakdown of those numbers.
There have been no changes to the criteria that govern who are and who are not required to complete and submit a Self-Assessment Return since 1 January 1998.
| Period of return | 1998–99 | 1999–2000 | 2000–01 | 2001–02 | 2002–03 |
|---|---|---|---|---|---|
| Bulk annual issue | 7,424,907 | 7,267,592 | 7,237,749 | 7,309,336 | 7,130,076 |
| Notices to file | 791,647 | 1,249,819 | 1,417,120 | 1,488,130 | 1,834,610 |
| In year issue | 1,129,446 | 806,589 | 591,131 | 633,534 | (37)575,345 |
| Total | 9,346,000 | 9,324,000 | 9,246,000 | 9,431 ,000 | (38)9.7 |
(37) To date.
(38) Million estimated.
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Timber
Sue Doughty: To ask the Chancellor of the Exchequer what source of paper is used for banknotes; and what measures have been taken to ensure that all timber used in this paper comes from (a) legal and (b) sustainable sources. [136015]
Ruth Kelly: The paper used for UK banknotes notes is not made from timber. It is manufactured by a specialist paper manufacturer from cotton fibre and linen rag, which gives its crisp and distinctive feel and makes it tougher and more durable than the more common wood pulp paper. Using copious amounts of water, the cotton is broken down into individual fibres and reformed into reels of paper of the quality required.
Stamp Duty Land Tax
Mr. Prisk: To ask the Chancellor of the Exchequer what estimate he has made of the proportion of leases which will pay (a) less stamp duty, (b) more stamp duty and (c) the same amount of stamp duty following the recent changes to the charging of stamp duty on leases. [135069]
Ruth Kelly: The effect of the introduction of Stamp Duty Land Tax on 1 December 2003 (including the effect of the changes announced recently) is:
| Percentage | |
|---|---|
| Paying less duty | (39)74 |
| Paying the same duty | (40)15 |
| Paying more duty | 11 |
(39) Of which 72 per cent. reduced to nil.
(40) All of which currently pay nil.
As a result of the increases in the thresholds for commercial and residential leases, from 1 December 2003, 87 per cent. of leases will pay no Stamp Duty Land Tax (compared with 15 per cent. who were exempt under stamp duty) and a further 2 per cent. will pay less Stamp Duty Land Tax than they would have paid stamp duty.
As a result of the changes, only 11 per cent. of leases will pay more Stamp Duty Land Tax than they would have paid stamp duty.
Mr. Prisk: To ask the Chancellor of the Exchequer what assessment he has made of the effect of changes to the charging of stamp duty on leases on the (a) retail sector and (b) licensed trade. [135072]
Ruth Kelly: Detailed consultation with a wide variety of representative bodies, including those for the retail and licensed trade, were held both before and after publication of the Finance Bill 2003. Both during and after these meetings, much useful information was shared.
Overall for commercial leases, the increase in the threshold from £60,000 to £150,000 will exempt 53 per cent. of the leases which would have paid stamp duty (in addition to the 9 per cent. of leases which currently pay no stamp duty) and the introduction of the 'slice' system will reduce the duty payable on another 5 per cent. of leases from that due under stamp duty.
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It is accepted that different sectors will be affected differently, according to the sectoral distribution of lease lengths and rentals. The percentage of leases in particular sectors which are newly exempt or will pay less under SDLT are highly sensitive to these factors.
From data supplied by a representative body covering part of the licensed trade, analysis shows that, before 1 December 2003, 1.16 per cent.of leases taken out by its members were exempt whilst, if these leases were to be taken out on or after 1 December 2003, 37.43 per cent. would be exempt (for those leases within the data supplied.)
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