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19 Nov 2003 : Column 1096W—continued
National Insurance Fund
Paul Flynn: To ask the Chancellor of the Exchequer in which years the rate of Treasury supplement to the National Insurance Fund was 18 per cent.; and if he will estimate the amount of the supplement in the current year if it were paid at that rate. [139451]
Dawn Primarolo: The Treasury supplement was 18 per cent. for the years 1975–76 to 1980–81. It was abolished in 1988–89. If it still applied, and the rate was 18 per cent. it would amount to £12.4 billion for 2003–04.
Official Residences
Mr. Flight: To ask the Chancellor of the Exchequer how much the Department spent on (a) maintenance, (b) renovation, (c) council tax and (d) running costs of residential properties used by Ministers and officials in each year since 1997. [134700]
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Ruth Kelly: The details requested are set out as follows.
| Maintenance | Renovation | Council tax | Running costs(36) | |
|---|---|---|---|---|
| 1997–98 | 0 | 0 | 304 | 62,306 |
| 1998–99 | 0 | 0 | 325 | 149,598 |
| 1999–2000 | 0 | 0 | 350 | 166,841 |
| 2000–01 | 0 | 0 | 375 | 124,456 |
| 2001–02 | 0 | 0 | 410 | 139,814 |
| 2002–03 | 0 | 0 | 445 | 156,570 |
(36) These costs include the proportion of capital charge (rent), rates, service charges and utilities in respect of the No.10 flat.
The increase in rent/rates from 1997–98 to 1998–99 is due to the introduction of capital charging to replace Property Repayment Service assessed rents as the method of accounting for Crown Freehold properties.
Payroll Services
Mr. Edward Davey: To ask the Chancellor of the Exchequer what measures of performance and customer satisfaction were included in the framework agreement between Her Majesty's Treasury and CMG for the implementation and provision of payroll services; what assessment he has made of the outcomes against target in relation to this agreement to date; and if he will make a statement. [139562]
Ruth Kelly: The Principal Framework for the provision of payroll services was set up to enable HM Treasury or any other Department or Agency to enter into an individual service contract with the Supplier for payroll provision. The Framework Agreement lays down approved warranties, undertakings and representations for the Supplier.
The Framework Agreement also provides for the termination of the Agreement.
The Framework Agreement did not confer upon the Supplier any right to service the payroll requirements of HM Treasury or any Department or Agency other than as provided in any service contracts.
Personal Tax/Benefits
Mr. Flight: To ask the Chancellor of the Exchequer (1) pursuant to his statement of 13 November 2003, Official Report, column 403, on personal tax and benefit changes since 1997, if he will (a) list the personal tax and benefit changes since 1997 that have benefited householders and (b) state the net change in Government revenue resulting from each personal tax and benefit change for each applicable year since 1997; [140033]
- (2) pursuant to his statement of 13 November 2003, Official Report, column 403, on personal tax and benefit changes since 1997, what definition he used of householders; and how many householders there were in each year since 1997; [140034]
(3) pursuant to his statement of 13 November 2003, Official Report, column 403, if he will (a) list the assumptions made and (b) set out the calculations used in coming to the conclusion on benefits to householders of personal tax and benefit changes since 1997. [140065]
19 Nov 2003 : Column 1098W
John Healey: The Government have introduced a number of personal tax and benefit measures since 1997 that have benefited households. As I said in my answer of 13 November 2003, Official Report, column 403, householders are, on average, £775 a year better off. Full details of these measures and their effect on Exchequer revenues are set out in the relevant Financial Statement and Budget reports, copies of which are available in the Library of the House. These measures include cutting the basic rate of income tax to 22 per cent. the lowest rate for 70 years, introducing the 10p starting rate of income tax, over-indexing age-related personal allowances and introducing the working and child tax credits to support families and tackle child poverty.
The definition of a household can be found on page 173 of the 2002 edition of Family Spending a copy of which is available in the Library of the House. Table 1.1 of this publication gives an estimate of the number of households in 2001–02; figures for earlier years are given in previous editions.
An estimate of the average gain is calculated by comparing net household incomes after the operation of 2003–04 direct tax and benefit system with those after the operation of the 1997–98 direct tax and benefit system, uprating parameters to 2003–04 levels in line with changes in prices, and excluding the effect of the abolition of mortgage interest relief at source (MIRAS).
Private Schools
Mr. Foulkes: To ask the Chancellor of the Exchequer if he will estimate the effect on value added tax revenue of the charitable status of private schools in the last year for which figures are available. [139693]
John Healey: No such estimate can be made. VAT reliefs for charities are general and available data on expenditure by charities and non-profit making bodies
do not identify different sectors.
Secondees
Dr. Cable: To ask the Chancellor of the Exchequer, pursuant to his answer of 4 November 2003, Official Report, column 620W, on secondees, which organisation is responsible for salaries and expenses of secondees out of the Treasury; and if he will make a statement. [139994]
Ruth Kelly: Of the 28 organisations mentioned in my earlier answer, the Treasury fully funds secondments to 6 of the organisations (with one of which we have a reciprocal arrangement). Secondments are partially funded by us to 6 other organisations, and the remaining 16 are fully funded by the organisation.
Stamp Duty
Mr. Laws: To ask the Chancellor of the Exchequer if he will estimate the revenue cost of restructuring stamp duty on residential property sales so as to charge marginal rates of (a) 0 per cent. on property sales of £100,000 or less, (b) 2 per cent. on sales revenue of between £100,000 and £199,999, (c) 3 per cent. on sales revenue of between £200,000 and £299,999, (d) 4 per cent. on sales revenue of £300,000 to £399,999, (e) 5 per cent. on sales revenue of
19 Nov 2003 : Column 1099W
£400,000 to £499,999, (f) 6 per cent. on sales revenue of £500,000 to £749,999 and (g) 7 per cent. on sales revenue of £750,000 and above. [135308]
Ruth Kelly: The revenue cost of restructuring stamp duty on residential property sales according to the scheme described above is estimated to be £700 million in 2004–05. This does not include any allowance for behavioural changes.
Tax Credits (Overpayment)
Richard Burden: To ask the Chancellor of the Exchequer (1) whether existing tax credit claimants will be expected to make contact with the Inland Revenue to request a form or give information regarding their earnings for the last tax year in preparation for a reconciliation of their tax credit status in April 2004; [135413]
- (2) what action he is taking to ensure that the Inland Revenue applies lessons learned from the first year of operation of the (a) working tax credit and (b) child tax credit to the administration of those credits in time for financial year 2004–05; [135414]
(3) whether existing tax credit claimants will automatically be sent forms to complete regarding their earnings for the last tax year in preparation for a reconciliation of their tax credit status in April 2004; [135415]
(4) when he expects existing tax credit claimants to provide information about their earnings over the last tax year in order to achieve a smooth reconciliation of individuals' entitlements in time for April 2004. [135416]
Dawn Primarolo: The Inland Revenue has reflected the lessons learned from the introduction of tax credits last April in the detailed design of the processes for finalising tax credits awards and renewing claims from April 2004.
The Inland Revenue will be writing to all tax credits claimants early next year to explain how the finalisation and renewals processes will work, and to let them know what they can expect to receive from the Revenue and how and when they would be expected to respond.
No claimant will need to initiate contact. The Inland Revenue will write to all tax credits claimants from April 2004 over a period of weeks explaining how they can finalise their award for 2003–04 and renew their claim for 2004–05, if appropriate.
Once contacted by the Inland Revenue, we expect two-thirds of claimants will need to provide details of their income for the previous tax year (2003–04) and confirm their circumstances over the period of their award.
The remaining third of claimants—families receiving only the family element of child tax credit—will not need to contact the Inland Revenue unless they have changes to report in their circumstances or income over the last tax year (2003–04). Because the level of their award would be affected only by a significant change in income, we expect that only a small minority of these claimants will need to report their 2003–04 income.
19 Nov 2003 : Column 1100W
Claimants who need to provide information will have until 30 September 2004 in which to do so. During this renewal period, tax credits payments will continue. Once the information is provided, the Inland Revenue will finalise the previous tax year's award (2003–04) and, if appropriate, set up the award for 2004–05.
If they do not have details of their actual income for 2003–04 by the deadline, claimants can provide an estimate by 30 September 2004. They will then have until 31 January 2005 to provide the details of their actual income.
There will be a comprehensive publicity campaign throughout the period to ensure that claimants are fully aware of what they have to do.
The Inland Revenue is also expanding the capacity of the Tax Credits Helpline to support the finalisation and renewals processes, with the addition of two new contact centres.
As set out in my answers of 7 July 2003 to the hon. Members for Arundel and South Downs (Mr. Flight), Official Report, column 583W and for Yeovil (Mr. Laws), Official Report, column 584W, the Inland Revenue's compliance strategy for new tax credits has been placed in the Library of the House.
Sir Archy Kirkwood: To ask the Chancellor of the Exchequer how many complaints he has received about (a) child tax and (b) working tax credit; how much compensation has been paid for errors; and what the (i) range and (ii) average amount of compensation paid is. [135933]
Norman Lamb: To ask the Chancellor of the Exchequer (1) how many compensation awards have been made by the Inland Revenue in respect of complaints about (a) child and (b) working tax credit; [136151]
- (2) how many complaints seeking compensation have been received in respect of (a) child and (b) working tax credit; [136152]
(3) what the total value is of compensation awards made by the Inland Revenue in respect of complaints about (a) child and (b) working tax credits. [136449]
Dawn Primarolo [holding answer 4 November 2003]: To the end of September approximately 1,600 claims had been paid out. This represents about one thirtieth of one per cent of all claims received for tax credit awards. The average payment was £30.
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