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9 Oct 2006 : Column 292W—continued


National Insurance

Mr. Frank Field: To ask the Chancellor of the Exchequer, pursuant to the answer of 30 March 2006, Official Report, column 114W, on national insurance, how many of the 35,000 numbers issued to claimants of tax credits have been checked for fraud. [78120]

Dawn Primarolo: All claims for tax credits are subject to a risk assessment process which looks at the features of a claim against known risks of error and fraud.

New Enterprise Funds

Mr. Francois: To ask the Chancellor of the Exchequer how many of the business loans and management scholarships have been allocated from the new enterprise funds in each year since 2000. [84814]

Margaret Hodge: I have been asked to reply.

The number of scholarships that have been allocated in respect of the new entrepreneur scholarship programme in each of the financial years since the programme commenced is as follows.


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Number

2001-02

75

2002-03

296

2003-04

1,173

2004-05

995

2005-06

1,034

2006-07

1,610


In respect of Community Development Finance Institutions (CDFIs), 16 CDFIs allocated 1,180 loans between 2000 and 2003, 31 CDFIs allocated 1,632 loans between 2002 and 2005; and 55 CDFIs allocated 1,678 loans between 2003 and 2006. Funds are managed over a three year term and to provide an annual breakdown would be at disproportionate cost.

Mr. Francois: To ask the Chancellor of the Exchequer how much was spent on the two new enterprise funds announced in the 2000 Budget for business loans and management scholarships for high unemployment areas in each year since their inception; and if he will make a statement. [84815]

Margaret Hodge: I have been asked to reply.

The amount allocated by the Learning and Skills Council since the inception of the new entrepreneur scholarship programme for delivering the scholarships is given in the following table.

£ million

2001-02

2

2002-03

4

2003-04

6

2004-05

5

2005-06

5

2006-07

7


The amount allocated by DTI to Community Development Finance Institutions for business loans is given in the following table.

£ million

2000-01

3.5

2001-02

10.9

2003-04

17.4


Office for Government Commerce

Mr. Stewart Jackson: To ask the Chancellor of the Exchequer what factors were taken into account in deciding that other Government Departments would have access to the retained solicitors of the Office for Government Commerce without this arrangement being subject to competitive tendering; and if he will make a statement. [89299]

John Healey: Core legal services are provided to OGC by an in-house team of Government lawyers, they have no other clients.

A framework agreement for the provision of Information and Communications Technology and commercial (non-core) legal services to OGC and its customer organisations was concluded with DLA in May 2003. This contract was awarded following a
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competition that complied with the EU public procurement regime. The terms of the competition were such that the contract would include advice to other government organisations.

No new work has been placed under this agreement since December 2005.

Oil Prices

Chris Huhne: To ask the Chancellor of the Exchequer pursuant to his answer of 19 July 2006, Official Report, column 521W, on oil prices (1) what effects his Department’s econometric model predicts of a sustained $10 per barrel rise in the world oil price caused by supply constraints or disruption in each of the five subsequent years compared with a base forecast on (a) gross domestic products (GDP), (b) GDP growth, (c) consumer price inflation, (d) the unemployment rate, (e) the employment rate, (f) Government borrowing as a percentage of GDP, (g) policy interest rates, (h) balance of trade as a percentage of GDP, (i) the current account of the balance of payments as a percentage of GDP, (j) public debt at end year as a percentage of GDP, (k) the effective exchange rate and (l) the real effective exchange rate; and what other economic assumptions are made in each case; [90272]

(2) what effects his Department’s econometric model predicts of a sustained $10 per barrel rise in the world oil price caused by demand pressures in each of the five subsequent years compared with a base forecast on (a) gross domestic products (GDP), (b) GDP growth, (c) consumer price inflation, (d) the unemployment rate, (e) the employment rate, (f) Government borrowing as a percentage of GDP, (g) policy interest rates, (h) balance of trade as a percentage of GDP, (i) the current account of the balance of payments as a percentage of GDP, (j) public debt at end year as a percentage of GDP, (k) the effective exchange rate and (l) the real effective exchange rate; and what other economic assumptions are made in each case. [90273]

John Healey: To estimate the effects of a sustained $10 per barrel rise in the world oil price would require a wide range of additional auxiliary assumptions to be specified such as, for example, the response of fiscal and monetary policy makers and any movements in the sterling exchange rate.

Therefore, the Treasury does not run simulations on its macro-economic model in response to parliamentary questions on grounds of disproportionate cost associated with such a wide range of assumptions needed in order to specify simulation design.

Outsourced Administration

Mr. Gauke: To ask the Chancellor of the Exchequer what administrative functions for which his Department is responsible are outsourced overseas; and what assessment he has made of the merits of outsourcing further such functions overseas. [81555]

John Healey: No administrative functions for which HM Treasury are responsible are outsourced overseas.


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Overpayments

Mr. Laws: To ask the Chancellor of the Exchequer on what date the reasonable belief test in relation to writing off overpayments was introduced into HM Revenue and Customs’ code of practice on overpayments; how this test will be applied; and if he will make a statement. [76854]

Dawn Primarolo: HMRC’s policy on dealing with overpayments, including those caused by their mistake, is set out in their Code of Practice—COP 26—“What happens if we have paid you too much tax credit?” The policy has been set out in every edition of the Code.

Pensions

Miss McIntosh: To ask Mr Chancellor of the Exchequer whether he has plans to compensate those who pay voluntary class 3 National Insurance contributions under the present system if the proposed Pensions Reform Bill is passed in its present form and additional contributions paid prove unnecessary. [91084]

Dawn Primarolo [holding answer 13 September 2006]: The National Insurance system operates on a pay-as-you-go basis with the National Insurance Contributions that people pay funding payments to those currently in receipt of contributory benefits and helping to fund the NHS. Work is ongoing on the detailed implementation of the Pensions White Paper.

The Government intend to bring forward legislation on Pensions Reform during the second session of this Parliament.

Mr. Pelling: To ask the Chancellor of the Exchequer what account is taken of pension deficits in the financial model for economic growth. [91617]

Ed Balls: The Treasury macroeconomic model is principally a model of the economic activity described and recorded in the National Accounts. As such it does not explicitly include pension deficits that are defined by accounting standards e.g. FRS17. However, in preparing the Pre-Budget Report and Budget forecasts careful consideration is given to the possible economic implications of pension fund deficits for corporate and household behaviour.

Mr. Philip Hammond: To ask Mr Chancellor of the Exchequer what assessment he has made of how a restriction in tax relief on pension contributions to the basic rate would affect defined benefit pension schemes. [90411]

Ed Balls: No such analysis has been carried out.

Planning Gain Supplement

Mr. Hands: To ask the Chancellor of the Exchequer whether there will be a redistribution mechanism to transfer revenue from planning gain supplement (a) between local authorities within the Government office region in which the development is located and (b) to local or regional authorities in different Government office regions in which the development is located. [89408]


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John Healey: The Government stated at Budget 2006 that it will ensure that a significant majority of planning gain supplement (PGS) revenues are retained for infrastructure priorities within the local authority area where the revenues derived. The remainder would be dedicated to strategic infrastructure of regional importance. Further announcements on PGS will be made by the end of the year.

Mr. Hands: To ask the Chancellor of the Exchequer whether planning gain supplement will be levied at the same rates on (a) residential and non-residential development and (b) brownfield and greenfield land; and if he will make a statement. [89410]

John Healey: The Government have proposed that planning gain supplement (PGS) be applied at the same rate on residential and non-residential development.

The Government consulted on the possibility of a lower rate for brownfield land, and will make further announcements on PGS by the end of the year.

Mr. Hands: To ask the Chancellor of the Exchequer what assessment he has made of whether local councils in which a development is located will receive an increase in net aggregate revenue once planning gain supplement is introduced and existing Section 106 agreements are curtailed. [89411]

John Healey: The Government have stated that a significant majority of planning gain supplement (PGS) revenues would be retained within the local area where the revenues are derived. How much each community receives will depend on the level of development in their area that is subject to the planning gain supplement. Further announcements on PGS will be made by the end of the year.

Mr. Hands: To ask the Chancellor of the Exchequer whether planning gain supplement will be classified as a tax by (a) HM Treasury and (b) the Office for National Statistics. [89412]

John Healey: The Government published a consultation on their proposals for planning gain supplement (PGS) alongside the 2005 Pre Budget Report. The Office of National Statistics have yet to take a view on the classification of PGS.

Mr. Hands: To ask the Chancellor of the Exchequer whether revenue from planning gain supplement will be (a) ring-fenced and (b) hypothecated. [89413]

John Healey: As set out in Budget 2006, planning gain supplement (PGS) revenues would be hypothecated for local infrastructure priorities and strategic infrastructure of regional importance. The Government have stated that a significant majority of PGS revenues will be retained within the local area where the revenues derived.

Mr. Hands: To ask the Chancellor of the Exchequer whether it is his intention for it to be permissible for planning gain supplement revenues to be spent on infrastructure that is not allowed under section 106 agreements. [89414]


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John Healey: Planning gain supplement (PGS) revenues would be dedicated to financing additional investment in local and strategic infrastructure necessary to support growth. Further announcements on PGS will be made by the end of the year.

Michael Gove: To ask the Chancellor of the Exchequer pursuant to the answer of 16 March 2006, Official Report, column 2417W, to the hon. Member for Brentwood and Ongar (Mr. Pickles), on planning gain supplement, if he will place in the Library copies of the responses to the consultation. [90103]

John Healey: The Government will publish copies of the responses to the consultation alongside the summary of responses in due course. Further announcements on PGS implementation will be made by the end of the year.

Police Force Amalgamations

Mrs. Villiers: To ask the Chancellor of the Exchequer what the Home Office has reported to the Office of Government Commerce (OGC) as the impact on its ability to deliver the £1,060 million Gershon efficiency savings by the police of the change in the position relating to police force amalgamations; what alternative efficiency savings have been proposed to the OGC by the Home Office to replace the savings expected to be made; and if he will make a statement on the Home Office’s latest reports of progress towards achieving the total efficiency savings by the police. [86089]

Mr. Timms: I refer the hon. Member to the answer given by the Minister of State, Home Office on 15 August, printed on 4 September 2006, Official Report, column 1882W.

Private Finance Initiative

Mr. Tyrie: To ask the Chancellor of the Exchequer what total amount has been spent on Private Finance Initiative projects postponed pending further consideration or stopped in the last 12 months. [92196]

John Healey: Aggregated information is not held centrally. Individual Departments may be able to provide data relating to their own PFI programmes.

Mr. Dai Davies: To ask the Chancellor of the Exchequer what steps he plans to take to close loopholes permitting private finance initiative (PFI) contract holders legally to avoid paying taxes on PFI contracts. [92387]

John Healey: All PFI companies are contractually committed to deliver their service subject to the UK tax regime.


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Government’s policy in this area .is set out in the “Dear Accounting Officer” letter of 22 May 2003 issued to all government departments regarding Tax Planning and Tax Avoidance.

The full letter is available on the Treasury website at http://www.hm-treasury.gov.uk


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