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10 July 2008 : Column 1780W—continued
Global Carbon Finance Project
15. Kerry McCarthy: To ask the Chancellor of the Exchequer what recent discussions Ministers and officials from his Department have had with the Office of Climate Change on the Global Carbon Finance project. [217466]
Angela Eagle: The Stern Review demonstrated that the economics of climate change is an important issue for economics and finance ministries. Treasury officials therefore work closely with the Office of Climate Change and other government Departments on a range of issues around the economics and financial aspects of climate change, and continue to be involved with the development of the Office of Climate Change's Global Carbon Finance Project.
Budget Deficit
16. Mr. Bone: To ask the Chancellor of the Exchequer what recent discussions he has had with the European Commission on the UK's budget deficit. [217467]
Kitty Ussher: The Chancellor attended the Economic and Financial Affairs Council on the 8 July, where implementation of the Stability and Growth Pact was discussed, including in the UK.
Food Prices
17. Mr. Simon: To ask the Chancellor of the Exchequer what recent discussions he has had with his international counterparts on the effects on the economy of global food prices. [217468]
Angela Eagle: Treasury Ministers and officials hold a wide range of discussions with international counterparts. The Treasury published analysis of the recent increases in energy and agricultural prices on 12 June, and the Government are working to deal with both the short and long-term issues relating to global food prices. For example, the June European Council agreed that it is important to continue to improve the market orientation of agriculture and thus enable EU farmers to respond better to market signals, while the Government continue to work for a balanced WTO deal.
Low Income Households
18. Sir Peter Viggers: To ask the Chancellor of the Exchequer what estimate he has made of the amount of tax paid by low income households in the last 12 months. [217469]
19. Tim Loughton: To ask the Chancellor of the Exchequer what estimate he has made of the amount of tax paid by low income households in the last 12 months. [217470]
Jane Kennedy: A single earner family with two children on half male average earnings pays no net tax in 2008-09, as tax credits and child benefit more than offset income tax and national insurance liabilities.
In 1997-98, their net tax burden was 9.3 per cent. of gross income.
As a result of Government reforms to the tax and benefit system since 1997, households in the poorest fifth of the population are, on average, £2,575 a year better off in 2008-09.
Co-operative Sector
20. Mr. Sharma: To ask the Chancellor of the Exchequer what recent discussions he has had with Ministerial colleagues on support for the co-operative sector. [217472]
Kitty Ussher:
I am delighted to say that I was recently able to announce at the UK Cooperatives Congress, that the Government will be introducing a Legislative Reform Order which will remove the unnecessary burdens on the sector and help them to
grow and develop with fitting legislation for the 21st century. We will be publishing a consultation document on the proposed changes before summer recess.
Vehicle Excise Duty
21. Mr. Swayne: To ask the Chancellor of the Exchequer what representations he has received on potential measures to mitigate the effects of increases in vehicle excise duty; and if he will make a statement. [217473]
Angela Eagle: The Government have received a wide-ranging number of representations in relation to the vehicle excise duty reforms announced at Budget. There are a variety of options expressed on their merit.
Tax Burden
22. Paul Flynn: To ask the Chancellor of the Exchequer if he will bring forward proposals to reduce the tax burden on low earners and pensioners. [217474]
Jane Kennedy: On 13 May 2008, the Chancellor announced further support for low and middle-income families for 2008-09. For the current tax year, income tax personal allowances will be increased by £600 for all tax payers under 65. Around 22 million basic-rate taxpayers will benefit from this change. The Government will set out plans for future years in the 2008 pre-Budget report.
Road Hauliers
23. Mr. Hollobone: To ask the Chancellor of the Exchequer what recent assessment he has made of the effectiveness of the tax and duty regimes for UK and foreign road hauliers within the UK. [217475]
Angela Eagle: Fuel duty remains an important mechanism to encourage efficient use of fuel as the UK seeks to reduce polluting emissions, as well as providing support for the funding of essential public services.
EU law is clear that policy measures may not inhibit the freedom of movement of goods and may not discriminate according to nationality, origin or destination of a vehicle. This of itself precludes any lump-sum tax levied specifically on entry to the UK.
Capital Gains Tax: Shares
Jim Cousins: To ask the Chancellor of the Exchequer how many individual declarations of share disposals for capital gains tax purposes were made in each of the last three most recently available tax years; and of what total value in each year. [217651]
Jane Kennedy: Estimates of the number and value of disposals by asset type are published as National Statistics on the HM Revenue and Customs at:
The current publication refers to 2004-05. Figures for share disposals for that and the previous two years are provided in the following table:
| Tax year | Shares | Disposals (Thousand) | £ million |
Cost of Living
John Barrett: To ask the Chancellor of the Exchequer what his most recent assessment is of trends in the cost of living. [217471]
Angela Eagle: Higher inflation tends to raise the cost of living. The Treasury published its latest assessment of economic prospects in the Financial Statement and Budget Report 2008. The Budget forecast showed inflation was expected to rise in the near term, driven by global energy and food prices. Since then, further rises in crude oil and world food prices have led to higher inflation than that expected at Budget.
Cycling
Justine Greening: To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of VAT-free bicycles that have been bought by employers under the Government’s Cycle to Work scheme in each year since the scheme began; [215700]
(2) what estimate he has made of the number of employees who have received use of a bicycle from their employer under the Government’s Cycle to Work scheme in each year since the scheme began; [215701]
(3) what estimate he has made of the effects on revenues accruing to the Exchequer as a result of the Cycle to Work scheme, with particular reference to (a) VAT exemptions on the purchase price of bicycles, (b) lower income tax contributions as a result of bike-related salary sacrifices, (c) lower national insurance contributions by employers as a result of bike-related salary sacrifices, (d) lower national insurance contributions by employees as a result of bike-related salary sacrifices and (e) capital allowances for bicycle purchases in each year since the scheme began; [215702]
(4) if he will estimate the number of employees earning the national minimum wage that have received use of a bicycle under the Cycle to Work scheme in each year since the scheme began. [215703]
Jane Kennedy: No such estimates have been made.
Bicycles purchased by employers for use in a Cycle to Work scheme are liable to the standard rate of VAT. However, under the normal rules of VAT, the tax charged can be reclaimed by a VAT registered business to the extent that it relates to its taxable business activities.
Departmental Manpower
Mr. Redwood: To ask the Chancellor of the Exchequer what the change in the number of employees in his Department and its agencies has been since July 2006. [217075]
Angela Eagle: These data have been published as at 31 March 2006, 2007 and 2008 for the Treasury and its agencies and can be found on the Treasury's website:
Energy: Conservation
Lembit Öpik: To ask the Chancellor of the Exchequer what discussions he has had with EU counterparts on the list of energy saving materials covered by a reduced value added tax rate; whether these discussions have included proposals to amend the list; what discussions he has had on the exclusion of double glazing and low emissivity glass from the list; and if he will make a statement. [214968]
Jane Kennedy: The availability of VAT reduced rates is governed by the European VAT agreements, signed by successive Governments. Where reduced rates are available, these have been applied where they provide the most cost-effective and well-targeted support for the Government’s objectives.
The existing provisions of directive 2006/112/EC have allowed us to introduce a reduced rate of VAT of 5 per cent. for the installation of certain renewable energy technologies and certain energy-saving materials; there is no requirement to discuss the materials and products to which it is applied with EU counterparts. The Government have examined the possibility of applying a reduced rate to the installation of double glazing and low-emissivity glass, but legal advice has suggested that under the current terms of directive 2006/112/EC, this would be incompatible with the principle of fiscal neutrality.
Income Tax: Tax Rates and Bands
Dr. Cable: To ask the Chancellor of the Exchequer pursuant to the oral statement of 13 May 2008, Official Report, columns 1201-02, on income tax, if he will break down the 1.1 million people affected by the removal of the 10p tax rate, who were not fully compensated by the measures announced in the statement by (a) age, (b) income decile, (c) region and (d) full or part-time employment; and if he will make a statement. [216151]
Jane Kennedy [holding answer 3 July 2008]: A detailed breakdown, including by age, of the 1.1 million households who were not fully compensated by the £600 increase in the personal allowance for income tax announced by the Chancellor on 13 May 2008, Official Report, columns 1201-02, is provided in the Treasury’s memorandum to the Treasury Select Committee as part of their inquiry into “Budget Measures and Low Income Households”.
Members: Correspondence
Sir Michael Spicer: To ask the Chancellor of the Exchequer when he plans to reply to the letter from the hon. Member for West Worcestershire dated 28 May 2008, PO Ref: 1/57888/2008, on diesel fuel. [217784]
Mortgages
Gordon Banks: To ask the Chancellor of the Exchequer what recent discussions he has had with mortgage lenders on the effect on the economy of levels of mortgage provision to first-time house buyers. [217452]
Kitty Ussher: I have regular discussions with the mortgage industry on a range of issues relating to the economy, and we continue to monitor economic developments closely, including the market for first-time buyers.
Poverty
Mr. Rooney: To ask the Chancellor of the Exchequer what steps he is taking to combat poverty amongst low income workers without dependent children. [216466]
Jane Kennedy [holding answer 7 July 2008]: Since 1997 the Government have introduced a series of reforms to make work pay and to guarantee minimum weekly incomes for families without dependent children. By October 2008, in real terms, households without dependent children in the poorest fifth of the population will be, on average, £1,800 a year better off.
These changes include the introduction, for the first time, of the working tax credit and a national minimum wage, which work together to provide guaranteed income in work. Since 1999, the minimum income guarantee has increased by 30 per cent. in real terms for single people aged 25 and over and in full time work.
Tax credits also play a key role in making work pay and reducing poverty. The 1(st) tax credit threshold, the point at which tax credits start to be withdrawn, was increased by £1,200 this year.
Research and Development Tax Credit: Energy
Jo Swinson: To ask the Chancellor of the Exchequer how much funding his Department has provided through research and development tax credits for projects relating to (a) energy generation, (b) renewable energy generation, (c) energy transmission and (d) energy efficiency, broken down by region. [217926]
Angela Eagle: Claims made by companies for R and D tax credits do not include details of the type of R and D project in the claim. Therefore, information on funding provided by R and D tax credits for energy-related projects is not available.
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