Written Ministerial Statements
Tuesday 18 July 2006
Treasury
HMRC Online Services
The Paymaster General (Dawn Primarolo): In his report on the “Review of HMRC Online Services”, published at the Budget in March 2006, Lord Carter of Coles recommended that, for 2007-08 and subsequent returns, the income tax self assessment filing deadline should be brought forward from 31 January to 30 September for paper returns and to 30 November for returns filed over the internet. Lord Carter has since reviewed the responses to the Partial Regulatory Impact Assessment published with his report and has received further representations from tax practitioners. Having reviewed his earlier findings, he has now recommended that, for 2007-08 and subsequent returns, the filing period for paper returns should be reduced to seven months—the new deadline should be 31 October—and the filing period for online returns should remain at 10 months—with a deadline of 31 January. He has also suggested that HM Revenue and Customs officials should work with practitioners to explore how in future the practical difficulties in collecting data earlier might be overcome so that taxpayers can complete their returns sooner if they wish. The Government have accepted Lord Carter’s revised recommendation. This updating of the self assessment system takes account of both the views of tax professionals and the operational requirements of HM Revenue and Customs.
Communities and Local Government
Home Information Packs
The Minister for Housing and Planning (Yvette Cooper): I am today setting out further details of the Government’s implementation strategy and dry run for Home Information Packs (HIPs).
The aims of the HIPs programme
The aims of the Government’s reforms to the home buying and selling process are threefold:
(i) To provide home owners with important energy efficiency information about their homes to help them cut fuel bills and carbon emissions. This is vital as homes account for 27 per cent. of Britain’s carbon emissions. Energy Performance Certificates will provide clear information about the energy efficiency of homes and how that can be improved. The Energy Saving Trust estimates that following the advice in Energy Performance Certificates could save the average home owner up to £300 a year on their fuel bills The Government believe it is important to implement these as early as possible given the importance of reducing carbon emissions.
(ii) To benefit consumers by cutting waste and duplication, speeding up home sales and reducing the number of failed transactions, which at present cost consumers around £350 million a year in wasted costs.
(iii) To encourage and support long term transformation of the home buying and selling industry by introducing greater transparency and competition to drive down costs and incentivise better service and clearer redress for consumers.
There are three main components to Home Information Packs: searches and other legal documents; Energy Performance Certificates; and the home condition surveys that make up the other component of a full Home Condition Report. It is essential that all aspects of Home Information Packs are properly tested before fall implementation. We need to be sure that consumers understand, value and can utilise the information that HIPs provide; that the assumed benefits will be realised; and that the different operating systems underpinning HIPs will work effectively.
As part of our on-going programme of implementation, we have already successfully tested over 14,000 HIPs with searches, but largely without Home Condition Reports, in the dry run so far. Over the course of the summer we propose to undertake farther consumer research on Home Condition Reports; to study in greater detail the 250 HIPs that have been produced to date with some kind of survey; and to look to see what more we can learn from experience in other countries where HIPs have been introduced successfully or are currently being proposed. From the autumn the emphasis of our implementation programme will switch to the testing of Energy Performance Certificates and Home Condition Reports. Working with the industry and with consumers, we are proposing to support a series of area based trials and we will test proposals such as allowing sellers to start marketing their homes if they have already commissioned their HIP rather than having to wait up to 14 days. There will be independent assessment and monitoring of all aspects of the dry run.
It is also important that reforms are introduced on a timetable and as part of a programme that maximises the benefits for consumers and the environment.
As part of the development of the dry run we have engaged in detailed consultation with a wide range of stakeholders and gathered substantial information on the progress of implementation so far. As a result, we have concluded that there would be significant risks and potential disadvantages to consumers from a mandatory “big bang” introduction of full Home Condition Reports on 1 June 2007. In particular:
Further testing is needed to ensure that Home Condition Reports deliver the assumed benefits for consumers and that the operating systems that support them work smoothly. Design work on the dry run has made it clear that this cannot be completed in time for the results to be taken into account by 1 June.
A recent report from the Council of Mortgage Lenders identified the real possibility that some lenders might not be fully geared up to use HCRs until 2008-09. In particular the industry’s plans for bringing in Automated Valuation Models means that many lenders will not have them in place by June 2007 and so will continue to seek separate mortgage valuation surveys where they could have relied on a Home Condition Report.
There are concerns about the number of inspectors that will be in place in time for June next year.
Moreover, because of our commitment to addressing climate change we do not want to jeopardise the successful introduction of Energy Performance Certificates at the earliest possible opportunity by pursuing the ‘big bang’ mandatory introduction of full Home Condition Reports at the same time.
We believe that progressive market-led take-up of full HCRs could strongly benefit consumers. Bearing in mind our commitment to the early introduction of Energy Performance Certificates, combining an Energy Performance Certificate and a full Home Condition Report at the same time is likely to offer significant additional benefits to buyers and sellers. In particular, sellers offering full Home Condition Reports should be more likely to benefit from swifter sales and suffer fewer transaction failures, as accepted offers are much less likely to be re-opened as a result of new information coming to light. In addition, once Automated Valuation Models are in place, Home Condition Reports should mean buyers get cheaper and swifter valuations and mortgage offers. We therefore believe that there will be a significant incentive for consumers to top up their HIPs voluntarily to include full Home Condition Reports and that this is a product that the market can and should deliver.
Therefore we have concluded that:
HIPs will be introduced with searches and other key documents from 1 June 2007.
Energy Performance Certificates will be included in HIPs on a mandatory basis from 1 June 2007.
We will work with the industry to facilitate market-led take-up of full HCRs. As part of this approach, we will explore with the sector a wide range of options to enable a successful and innovative market for HCRs, including options for supporting the provision of necessary systems, effective demonstration projects for HCRs, and will consider the case for pump-priming funding. This market-led approach has the added benefit of giving industry more flexibility to innovate and adapt to consumer preferences.
This means that the remaining aspects of Home Condition Reports will not be made mandatory from June next year, but HCRs will be authorised documents that sellers will be able to include in their packs
Mandatory HCRs will remain on the table if the industry fails to make a success of the roll out of HCRs
As part of the next phase of reform of we will also be setting out our plans for an ombudsman scheme for estate agents to strengthen consumer protection as well as further proposals to review competition and transparency in the industry to the benefit of consumers.
We believe that these arrangements will ensure that Home Information Packs are implemented in a way that maximises benefits for consumers and the environment and successfully enables the long-term transformation of the home buying and selling market.
Constitutional Affairs
Court of Protection Rules and Lasting Powers of Attorney
The Minister of State, Department for Constitutional Affairs (Ms Harriet Harman): My noble Friend the Parliamentary Under-Secretary of State has made the following written ministerial statement:
“The Department for Constitutional Affairs has yesterday published a consultation paper seeking views on new rules of court for the new Court of Protection established under the Mental Capacity Act 2005. The Department is seeking views on the draft rules included in the consultation paper. Copies will be placed in the Libraries of both Houses.
The Department is also publishing the Government response to the consultation on “Lasting Powers of Attorney” today. The consultation ended on 14 April 2006 and 118 responses were received. The consultation response provides a summary of responses and the next steps in light of the consultation.
The Mental Capacity Act 2005 establishes a new specialist court, to be known as the Court of Protection, with a new jurisdiction to deal with decision-making for adults who lack capacity. This court will have important structural differences from the current Court of Protection. The new court will be able to make decisions both, as the current court can, about property and affairs (the term used in the Act to describe the financial decision-making jurisdiction) and also about personal welfare matters including health care. The new Court of Protection will begin operating from April 2007.
The Act also allows people to plan ahead for a time when they may lack capacity by appointing an attorney to make decisions about both their property and affairs and personal welfare.”
Defence
Nimrod MRA4
The Secretary of State for Defence (Des Browne): I can announce that the contract for full production of 12 Nimrod MRA4 aircraft has been placed with BAE Systems. This is the culmination of many years of hard work by BAE Systems and its supply chain, and builds upon the considerable investment already made by the Ministry of Defence and BAE Systems. Nimrod MRA4 has had a troubled and well publicised history of time delays and cost overruns. The contract restructuring introduced since early 2003 has been successful in stabilising costs and, with three aircraft participating in the flight trials programme, the design has now reached a level of maturity which permits a commitment to full production.
The greater transparency offered by the revised contracting arrangements and the development of an effective partnering relationship between MOD and BAE Systems and its supply chain have been essential to restoring confidence in the programme. These are key elements of the Defence Industrial Strategy (DIS) and progress on Nimrod MRA4 demonstrates the benefits that will accrue to MOD and industry as these and other features of the DIS are put into effect across the defence industrial base.
The programme will provide the RAF with a maritime patrol aircraft capability second to none. Nimrod MRA4 will offer greater capability and improved availability when compared with the current MR2 maritime patrol aircraft which it replaces.
This contract will secure some 1,000 jobs at BAE Systems sites in the north-west of England, including around 700 at the Woodford site where the aircraft is manufactured. A further 300 or so jobs associated with production will also be secured at other BAE Systems sites.
Military Low Flying
The Parliamentary Under-Secretary of State for Defence (Mr. Tom Watson): It is normal practice for the Ministry of Defence to publish before the summer recess a report giving a detailed account of the low flying training that has taken place in the UK Low Flying System for the previous training year April 2005 to March 2006.
In the preparation of the report for this year an error in the method of attribution of hours from night areas into day areas has been discovered, which also affects information reported in prior years. This has delayed analysis of data and production of the 2005-06 report.
The corrected prior year figures will be shown in the 2005-06 report, and copies will be placed in the Library of the House.
November 2006 Roulement
The Secretary of State for Defence (Des Browne): I would like to confirm the details of the force package that we currently plan to deploy to Iraq at the next routine roulement of UK forces in November 2006.
The lead UK formation, currently 20 Armoured Brigade, will be replaced by 19 Light Brigade, which will take over command of UK forces in early November. In addition to 19 Light Brigade’s Headquarters and Signals Squadron, the other major units currently in Iraq will be replaced as follows:
Following the completion of the roulement in November, the total number of UK troops in Iraq will be broadly the same as currently deployed, approximately 7,100 servicemen and women.
Members of the reserve forces will continue to deploy to Iraq as part of this force package, and we shall shortly start to serve approximately 600 call-out notices in order to fill some 500 posts. On completion of their mobilisation procedures, the reservists will undertake a period of training and integration into their respective receiving units. For, the majority their deployment to theatre will also commence in November and most will serve there for six to seven months, although some may have shorter tours. The reservists will perform a wide range of activities including force protection duties, logistics, medical support and individual reinforcements to units. In addition, we expect some 20 members of the sponsored reserves to be in theatre at any one time.
I emphasise that the force package we deploy in October/November will depend on the conditions on the ground, in particular the security situation in the south and progress on handover of security responsibility to the Iraqi civil authorities over the months to come. I very much hope that positive progress in these areas will enable adjustments to the force package we deploy, and we will continue to keep UK force levels in Iraq under review. I will, of course, aim to inform Parliament of any changes to these plans at the earliest opportunity.
| Next Section | Index | Home Page |