---

19 Jul 2005 : Column 1692W—continued

Money Laundering

Mr. Roger Williams: To ask the Chancellor of the Exchequer how many people in the UK (a) have had their bank accounts closed and (b) been refused a bank account on grounds of suspicion of money laundering in each of the last three years. [12742]

 
19 Jul 2005 : Column 1693W
 

Mr. Ivan Lewis: This information is not held by the Government.

National Insurance

Dr. Cable: To ask the Chancellor of the Exchequer what the cost would be of increasing the personal and employer and employee national insurance contribution thresholds to £8,615 (a) keeping a 10 per cent. starting rate on the first £2,090 above £8,615 and (b) removing the starting rate, in both cases decreasing the basic rate limit so that the upper rate was applied at the same point as at present. [13203]

Dawn Primarolo: Increasing the personal allowance (PA) and employer and employee national insurance contribution thresholds to £8,615 and reducing the basic rate band limit to £28,680, while keeping the 10 per cent. starting rate on the first £2,090 above the PA would reduce the tax/national insurance contribution revenue by around £38.5 billion in 2005–06.

The cost would fall to £32.6 billion in 2005–06 if the first £2,090 above the PA is absorbed into the basic rate band.

These estimates have been obtained after increasing all personal allowances (i.e. the personal allowances and personal allowances for individuals aged 65 and above) to £8,615, increasing the Primary and Secondary Thresholds to £166 per work and keeping the higher rate income-tax threshold at the current £37,295.

The second costing assumes the first £2,090 is taxed at 22 per cent. on earnings and 20 per cent. on savings—the dividends starting rate is kept at 10 per cent.

There would be no savings from lower tax credits since tax credit entitlement is based on gross income.

The income tax information is based upon the 2002–03 Survey of Personal Incomes (SPI) projected forward to 2005–06 and information on national insurance contribution information has been provided by the Government Actuary's Department (GAD). Estimates are in line with Budget 2005 assumptions.

The figures exclude any estimate of behavioural response to the tax and national insurance contributions changes, which could be significant given the scale of the changes, nor do they consider the longer-term consequences of lower accruals of pension benefits and levels of rebates.

National Statistics

Mr. Fallon: To ask the Chancellor of the Exchequer what progress is being made with the Framework Review of National Statistics; when he expects it to be compiled; whether it will be published; and if he will make a statement. [13492]

John Healey: The Framework for National Statistics" came into force in 2000, and included a commitment for its review in five years. The Government will honour this commitment.

North Sea Oil Revenues

Mr. Salmond: To ask the Chancellor of the Exchequer whether the Government have revised their forecast of
 
19 Jul 2005 : Column 1694W
 
North sea oil revenues in the 2005–06 financial year to take account of higher than expected oil prices and sterling/dollar movements; and if he will make a statement. [12519]

Dawn Primarolo: The Government will publish an update of the effect of oil prices on the UK's public finances and updated forecasts for the UK and world economies in the pre-Budget report as usual, taking into account all relevant factors and developments, including oil prices.

Offshore Tax Avoidance

Mr. MacNeil: To ask the Chancellor of the Exchequer what guidance he has issued on the awarding of contracts to companies who register crews offshore to avoid tax. [12469]

Dawn Primarolo: The Government awards contracts in accordance with procurement procedures. I refer the hon. Member to the answer I gave him on 15 June 2005, Official Report, column 391W.

Oil and Gas Revenues

Mr. Salmond: To ask the Chancellor of the Exchequer if he will estimate oil and gas revenues accruing to the Exchequer in the 2005–06 financial year assuming oil prices at (a) $50, (b) $60 and (c) $80 a barrel. [12520]

Dawn Primarolo: The impact of higher oil prices on the public finances is discussed in Box 2.5 in the 2004 Pre-Budget Report.

Overseas Civil Service

Mr. Philip Hammond: To ask the Chancellor of the Exchequer (1) how many former employees of Her Majesty's Overseas Civil Service benefited from a waiver of interest on tax liabilities for the year 1997–98 that were reported after the 31 January deadline as a result of the Hong Kong Government's decision to give a 10 per cent. rebate on tax charged for that year; [13230]

(2) what the total loss to the Exchequer was resulting from waiver of interest charges on tax liabilities of former employees of Her Majesty's Overseas Civil Service for the year 1997–98 that were reported after the 31 January deadline as a result of the Hong Kong Government's decision to give a 10 per cent. rebate on tax charged for that year; [13231]

(3) how many former employees of Her Majesty's Overseas Civil Service were charged interest on tax liabilities for the year 2001–02 that were reported after the 31 January deadline as a result of the Hong Kong Government's decision to give a 50 per cent. rebate on tax charged for that year. [13232]

(4) how much interest was charged on tax liabilities of former employees of Her Majesty's Overseas Civil Service for the year 2001–02 that were reported after the 31 January deadline as a result of the Hong Kong Government's decision to give a 50 per cent. rebate on tax charged for that year. [13233]

Dawn Primarolo: The information requested is not available centrally and could be obtained only at disproportionate cost.
 
19 Jul 2005 : Column 1695W
 

PAYE

Chris Huhne: To ask the Chancellor of the Exchequer what progress has been made in modernising the computerisation of Pay As You Earn (PAYE) by Her Majesty's Revenue and Customs; when current computer projects concerning PAYE are due to be completed; what the (a) original and (b) expected cost of each project is; what functional improvements are expected; and if he will make a statement. [12613]

Dawn Primarolo: PAYE computer systems and processes are being changed in order to support the recommendations of the 2001 Carter Report on Payroll Services which the Government accepted in the 2002 Budget. They include mandatory online submission of Employer's Annual Returns by large and medium-sized employers and incentives for voluntary online submission by small employers. The changes also support the submission of cleaner data to newly defined quality standards. The changes are scheduled for completion in September 2005.

The original estimated development and running costs for this Programme (for the period 2003–04 to 2008–09) were £122 million. The expected costs for the same period, which are in line with the formally agreed business case, are £156 million. The difference is accounted for primarily by increased IT development and running costs driven out by detailed design and analysis work.

935,000 (62 per cent.) 2004–05 Employer's Annual Returns, covering 87 per cent. of employee data, were made online. This compares with 6.6 per cent. of Returns the previous year.

As part of its normal business, HMRC keeps computer support for PAYE under review with a view to improving processes and meeting public service agreement targets on customer service and efficiency.

Pension Funds

Gregory Barker: To ask the Chancellor of the Exchequer what recent representations he has received from British businesses regarding taxes on pension funds since 1997. [10873]

Mr. Ivan Lewis: The Treasury receives representations from a number of parties, including British businesses on a wide range of issues, including tax and pensions.

Pension Savings (Tax Relief)

Mr. Denham: To ask the Chancellor of the Exchequer if he will estimate cost of tax relief on pension savings in 2026. [12791]

Mr. Ivan Lewis: No estimates are available.

---