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12 Nov 2003 : Column 391W—continued
Small Business
Mr. Prisk: To ask the Deputy Prime Minister what discussions he has had with (a) representatives of local government, (b) the Federation of Small Businesses and (c) other groups representing business on the effect of Part 8 of the Local Government Act 2003 on competition between local government and small businesses. [137607]
Mr. Raynsford: The Government consulted widely on the provisions in the Local Government Act 2003 and has considered the concerns of small businesses particularly with regard to the charging and trading provisions. In addition, officials in the Office of the Deputy Prime Minister held discussions with the Small Business Service of the Department for Trade and Industry (DTI), the Office of Fair Trading and CBI.
While the powers to charge for discretionary services will be available to all best value authorities, the trading powers set out in the Act will be subject to the council's CPA categorisation and only available to authorities with a fair good or excellent record on delivery of public service. Trading is only exercisable through a company structure which means it will be subject to the same regulation as other commercial bodies (for example on taxation). This will ensure that authorities keep any trading activities separate from their ordinary functions as well as promoting a level playing field with the private sector.
The Office of the Deputy Prime Minister intends to ensure that authorities do not distort markets through the provision of inappropriate subsidies to trading companies or the arrangement of preferential terms and other forms of unfair competition. To cover these concerns, we propose to impose certain conditions to regulate how authorities should engage in their trading activities. We will issue Guidance to reinforce this, to which authorities are required to have regard. Guidance on the charging powers will be published shortly. Authorities are subject to best value audit and inspection and must abide by competition legislation.
Valuation Bands (Pendle)
Mr. Gordon Prentice: To ask the Deputy Prime Minister how many appeals have been made against valuation bands of properties in Pendle in each year since 1992. [138103]
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Mr. Raynsford: The number of appeals that have been made each year against valuation bands of properties within the Pendle Billing Authority since Council Tax was introduced on 1 April 1993 is tabled as follows:
| Number of appeals | |
|---|---|
| 1993–94 | 1,249 |
| 1994–95 | 109 |
| 1995–96 | 138 |
| 1996–97 | 142 |
| 1997–98 | 141 |
| 1998–99 | 115 |
| 1999–2000 | 108 |
| 2000–01 | 118 |
| 2001–02 | 73 |
| 2002–03 | 44 |
| 2003–04 | (27)50 |
(27) To date
TREASURY
Bechtel
Malcolm Bruce: To ask the Chancellor of the Exchequer if he will list the contracts for consultancy and other work carried out by Bechtel for agencies responsible to his Department in each year since 1997, stating in each case (a) the nature of the work, (b) the value of the contract and (c) the duration of the contract; and if he will make a statement. [137881]
Mr. Boateng: The Chancellor's agencies have not had any contracts with Bechtel in this period.
Child Trust Fund
Dr. Kumar: To ask the Chancellor of the Exchequer if he will make a statement on the results of the Child Trust Fund; and how many people in each area have taken advantage of the scheme. [137646]
Mr. Boateng: The Child Trust Fund (CTF) is intended to encourage parents and children to develop the savings habit. It will ensure that every child, whatever their family background, will have access at the age of 18 when they begin their adult life, to a stock of assets which they can invest in their future.
It will also help children and their parents to understand the benefits of saving and investment and how to engage with financial institutions.
Detailed proposals covering the CTF were issued on 28 October. Accounts will first become available in April 2005. It will not be necessary to make a specific claim for the CTF—access will be through the child benefit system and parents will be sent a voucher with which to open an account for their child. Where an account has not been opened within 12 months of the issue of the voucher the Inland Revenue will open an account for the child to ensure that they do not miss out.
Financial Services Authority
Mr. Drew: To ask the Chancellor of the Exchequer whether the Financial Services Authority has adopted the financial literacy strategy used by the Treasury. [137672]
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John Healey: HM Treasury works closely with the Financial Services Authority, and others, on issues of financial literacy.
The FSA announced the members of their Financial Capability Steering Group on 20 October 2003. The Group will develop and implement a national strategy for financial capability. The FSA has announced that, advised by the Steering Group, it will publish the strategy by the end of March 2004.
North Sea Oil Tax Regime
Mr. Nicholas Brown: To ask the Chancellor of the Exchequer what impact he estimates the Energy Chapter of the Draft EU Constitution will have on the North Sea oil tax regime. [137721]
Dawn Primarolo: The Draft EU Constitutional Treaty is currently being discussed in the Intergovernmental Conference. The Draft has no legal force until it is agreed unanimously by member states.
The Government made it clear in its White Paper "The British Approach to the European Union Intergovernmental Conference 2003" that it would not agree to a new Treaty which was not in the UK's interests, and that it will insist that tax matters continue to be decided by unanimity.
Private Schools
Mr. Foulkes: To ask the Chancellor of the Exchequer what estimate he has made of the effect on value added tax revenue of private schools' charitable status in the last year for which figures are available. [137467]
John Healey: No such estimate has been made.
Tax Credits (Overpayment)
Sir Archy Kirkwood: To ask the Chancellor of the Exchequer if he will make a statement on the arrangements that will apply when recipients are required to repay their tax credits following changes in their income; what the maximum period is over which repayments can be made; what penalties exist for those failing to repay; and whether repayment will be required in a lump sum. [134926]
Dawn Primarolo: The Inland Revenue has published a code of practice on what happens when tax credit has been overpaid, copies of which are available in the Library of the House.
Financial penalties, and interest, can be imposed only where an overpayment arose because the claimant behaved fraudulently or negligently.
Sir Archy Kirkwood: To ask the Chancellor of the Exchequer what internal review procedures exist within the Inland Revenue for tax credit recipients faced with overpayments; and how these procedures differ from those that existed for working families tax credit. [134928]
Dawn Primarolo: Working families tax credit was a fixed award based on a snapshot of income and circumstances around the time of claim. Awards of new tax credits, however, are responsive to changes in circumstances and income and can be adjusted to reflect
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changes. The Inland Revenue has published a code of practice on recovery of overpayments of child and working tax credits.
Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer what estimate he has made of (a) the number of cases of overpayment and (b) the amount of the overpayment of (i) working families tax credit, (ii) children's tax credit and (iii) disabled person's tax credit in 2002–03. [137642]
Dawn Primarolo: Working families and disabled person's tax credit awards were fixed for 26 weeks, based on a snapshot of income and circumstances around the time of claim, and were not amended to reflect changes in the recipients' circumstances or incomes during this period. Provided the award was based on accurate information, overpayments did not arise. Children's tax credit is not a payment; it is a tax allowance which reduces a taxpayer's overall tax liability for the year.
Mr. Stephen O'Brien: To ask the Chancellor of the Exchequer when the Inland Revenue will publish the code of practice on overpayment of tax credits. [137643]
Dawn Primarolo [holding answer 10 November 2003]: The Inland Revenue is today publishing a Code of Practice on what happens when too much tax credit has been paid. Copies are available in the Library of the House.
Mr. Webb: To ask the Chancellor of the Exchequer (1) in what circumstances overpayments of tax credits are (a) recovered within the tax year in which they occurred and (b) recovered in the following tax year by means of a reduction in tax credit payments; [132597]
- (2) how many recipients of tax credits have been overpaid and issued with demands for lump sum repayments; [132598]
John Thurso: To ask the Chancellor of the Exchequer how many recipients of tax credits in Scotland have been (a) overpaid and (b) issued with demands for lump sum repayments. [135934]
Dawn Primarolo: During the tax year, a tax credit award can be amended to reflect changes in claimants' circumstances or because an overpayment is likely to arise at the end of the year. This may mean that payments are reduced or that no further payments are made because too much has been paid out already. To make sure that payments are not reduced to a level that would cause hardship, however, the Inland Revenue makes additional payments if that would be the case.
Overpayments of tax credit are identified when tax credit entitlement is finalised after the end of that year. In addition, overpayments can be identified when, as part of their compliance activities, the Inland Revenue terminate a tax credits award because the claimant had never in fact been entitled to tax credit. In these cases, the overpayment may be recovered as soon as the award is terminated. Around 700 requests for payment in such cases had been made by the end of October, including around 100 to families in Scotland.
The Inland Revenue is today publishing a Code of Practice on what happens when too much tax credit has been paid. The Code will also cover the circumstances in
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which the Revenue will not seek to recover a debt, for example, in cases of hardship. A copy of the Code has been placed in the House of Commons Library.
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