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4 Mar 2005 : Column 1397W—continued
Growth Rate
Mr. Willetts: To ask the Chancellor of the Exchequer what the UK's five year rolling average growth rate has been in each year since 1992. [219556]
Mr. Timms:
The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
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Letter from Len Cook to Mr. David Willetts, dated 4 March 2005:
As National Statistician, I have been asked to reply to your recent Parliamentary Question concerning what the UK's five year rolling average growth rate has been in each year since 1992. (219556)
The rolling average growth rates of UK Gross Domestic Product, for each year since 1992, in nominal terms (current prices) and chained volume measures (constant prices) are summarised in the table below:
Mr. Willetts: To ask the Chancellor of the Exchequer what estimate his Department has made of the effect of migration on the underlying growth rate of the UK economy. [219561]
Mr. Timms: The Treasury's projection for the trend growth rate of the economy is built up from projections of growth for the different components that drive trend growth, one of which is the population of working age. As referred to in the 2004 pre-Budget report, the trend growth assumption is 2¾ per cent. over the current economic cycle, with growth in the working-age population contributing around ½ percentage point. Included in this ½ percentage point is a contribution from net migration of slightly over ¼percentage point. The paper "Trend Growth: Recent Developments and Prospects" published alongside Budget 2002 explained the Treasury's approach to assessing trend growth, and further relevant material is published in the economy chapter of each pre-Budget and Budget report.
Inland Revenue/Customs and Excise (Merger)
Mr. Key: To ask the Chancellor of the Exchequer what assessment he has made of the impact of the Inland Revenue office in Alexandra House, Salisbury of the merger of the Inland Revenue with Customs and Excise. [219776]
Dawn Primarolo: Any decisions are dependent upon customer requirements and the development of the new HMRC business model. The plans for Alexandra House, Salisbury were made public in my written answer of 1 February 2005, Official Report, column 759W. Planning options continue to be explored for the staff affected.
Rent-a-room Scheme
Mr. Willetts: To ask the Chancellor of the Exchequer how many (a) landlords and (b) tenants have participated in the rent-a-room scheme. [219553]
Dawn Primarolo: The Inland Revenue does not have central records of the numbers of landlords or tenants who have participated in the rent-a-room scheme, as many of those landlords do not have to complete tax returns.
Tax Credits
Mr. Willetts: To ask the Chancellor of the Exchequer pursuant to the oral answer of 11 November 2004, Official Report, column 922, on tax credits, when the figures for overpayments of tax credits referred to will be published. [212358]
Dawn Primarolo: Statistics on overpayments and underpayments will be published in spring 2005 under National Statistics. In line with the National Statistics code of practice, the date of publication will be announced on the Inland Revenue website in due course.
http://www.inlandrevenue.gov.uk/stats/updates/updating_figures_2003_1.htm
Mr. Tynan: To ask the Chancellor of the Exchequer (1) what safeguards are in place to ensure individuals do not suffer financial hardship through the recovery of overpayment of tax credits by the Inland Revenue; [219531]
(2) what factors are taken into account before the Inland Revenue takes a decision on the level of repayment an individual should make towards recovery of overpayment of tax credit; [219532]
(3) what steps the Inland Revenue takes to discuss affordability with individuals in advance of imposing deductions to recover overpayments of tax credit. [219533]
Dawn Primarolo:
The Inland Revenue's Code of Practice 26 ("What happens if we have paid you too much tax credit?") sets out their approach to handling overpayments of tax credits. It describes a number of measures the Revenue has put in place to protect against hardship being caused by the recovery of an overpayment, which I can summarise as follows:
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Where possible, the Inland Revenue will collect an overpayment from a previous year from a continuing award. There are automatic limits on the amounts that will be deducted from payments and these are designed to prevent hardship.
Where a claimant's circumstances change, the Inland Revenue adjust their payments for the rest of the year with the aim of paying the right amount of tax credits for the year as a whole. The Inland Revenue may make additional tax credits payments to prevent hardship where payments are reduced following the adjustment of an award. The effect of these payments is that only part of an expected overpayment being collected is recovered by the end of the year, leaving the balance to be recovered in later years.
In exceptional cases, where claimants still feel that recovery of an overpayment is causing hardship, the Inland Revenue will consider the facts of the case and may decide not to collect all or part of the overpayment, or allow more time to pay.
Where claimants have no award for the current year, they receive a "Notice to Pay". This advises them to contact the Inland Revenue if they want to arrange to pay back their overpayment in 12 monthly instalments, or to request repayment over a longer period.
Mr. Webb: To ask the Chancellor of the Exchequer when he will reply to the letter from the hon. Member for Northavon of 5 January (PO Ref: 1/38019/2005) regarding the tax credits position of a constituent; and if he will ensure that the constituent receives emergency giro payments of tax credits at the earliest possible opportunity. [219743]
Dawn Primarolo: I wrote to the hon. Member on 2 March.
The Inland Revenue sent the hon. Member's constituent a payment on 1 March.
Mr. Steen: To ask the Chancellor of the Exchequer when a giro for an underpayment of tax credits for the 2004–05 tax year will be sent to Mr. David Crawford of Galmpton; why it has not been issued to date; and if he will make a statement on the tax credit computer system problems which are preventing giros being issued. [219809]
Dawn Primarolo: The Inland Revenue wrote to the hon. Member on 3 March 2005.
Mr. Steen: To ask the Chancellor of the Exchequer if he will investigate the reasons for working family tax credit being reclaimed from Ms Deborah Porter of Paignton; and for what reasons the Tax Credit Office have not replied to her letters. [219810]
Dawn Primarolo:
The Inland Revenue replied to the hon. Member's constituent's letters on 3 December 2004 and 3 March 2005. Their Code of Practice 26 "What happens if we have paid you too much tax credits?" outlines the approach they take in dealing with overpayments of tax credits.
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Tax Returns
Pete Wishart: To ask the Chancellor of the Exchequer if he will estimate the annual saving to the Exchequer of the introduction of (a) self-assessment tax returns and (b) online filing of self-assessment tax returns. [212348]
Dawn Primarolo: Self-Assessment was introduced in 1996 to modernise and simplify the assessment and payment processes. The new system also produced staff savings worth over £450million within the first four years. The success of the project was confirmed in an independent post-implementation review.
Since 1996 many improvements and changes have been made in the light of experience and they have also produced savings. One of the most significant has been the ability to file online (via the internet or the electronic lodgement service). More than 1.6 million online tax returns have been received in 2004–05 (for tax year 2003–04). These will generate targeted savings of more than £14 million in 2005–6, which as take-up continues to rise will increase to over £40 million per annum from 2011–12.
Pete Wishart: To ask the Chancellor of the Exchequer how many random checks on (a) self-employed and (b) small business tax returns there were in (i) 1997, (ii) 2001 and (iii) the last year for which figures are available; and what proportion of these random checks identified (A) major and (B) minor errors or omissions. [212349]
Dawn Primarolo: I can inform that hon. Gentleman that in every year since 1997 the Inland Revenue has undertaken roughly 2,600 random enquiries into the tax returns of self-employed individuals and roughly 250 random enquiries into the tax returns of small businesses. In the tax year 1997–98 adjustments were made to the returns in 32 per cent. of all random enquiries. The last year for which the Inland Revenue has produced complete analysis is 1998–99. In 1998–99 adjustments were made to returns in 30 per cent. of random enquiries.
Pete Wishart: To ask the Chancellor of the Exchequer if he will estimate the cost of random checks of self-assessment tax returns in (a) 1997, (b) 2001 and (c) the last year for which figures are available. [212350]
Dawn Primarolo: The Inland Revenue has not undertaken any research into such costs.
Pete Wishart: To ask the Chancellor of the Exchequer what assessment he has made of the tax fee insurance being offered by accountancy firms to cover costs in the event of a random audit by the Inland Revenue; and if he will make a statement. [212351]
Dawn Primarolo: The Inland Revenue has not made any assessment of these insurance schemes.
Pete Wishart: To ask the Chancellor of the Exchequer what estimate he has made of the average costs borne by an individual facing a random audit of their income tax return; whether financial assistance will be made available to cover the costs for those individuals who are found to have filed their return correctly; and if he will make a statement. [212352]
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Dawn Primarolo: The Inland Revenue has not undertaken any research into the costs concerned and has no plans to offer to reimburse such costs in any inquiry case.
Pete Wishart: To ask the Chancellor of the Exchequer whether there is a difference in the average cost for the Inland Revenue when undertaking a random audit of an individual's income tax return when the Inland Revenue deals with (a) an accountant representing the individual and (b) the individual themselves. [212353]
Dawn Primarolo: The Inland Revenue has not undertaken any research into the relative costs concerned.
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