Written Ministerial Statements
Wednesday 21 October 2009
Business, Innovation and Skills
Better Regulation
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Ian Lucas): The Government have today published a report on the Benefit-cost Ratio of New Regulations Introduced in the Financial Year 2008-09.
The report shows that the benefits of new regulations enacted in the last financial year outweighed the costs by £9 billion, at a ratio of nearly 2 to 1 and confirms the Government's commitment to strengthening regulatory management.
The figures, published as part of a new benefit-cost ratio, showed that overall quantifiable benefits exceeded costs by about 80 per cent., meaning that Government regulation is expected to deliver £1.85 in yearly benefits for every £1 of cost, or a ratio of 1.85 to 1. The publication of the ratio, covering the 2008-09 legislative programme, is a world-first and will be published annually in the future.
The Pensions Act 2008, aimed at enabling and encouraging more people to build up a private pension income to supplement the money received from their basic state pension, is an exceptional piece of legislation, with the highest benefits and costs in 2008-09, which has a significant effect on the overall ratio. If removed from the ratio, the benefit to cost ratio would increase to 4 to 1.
The benefit-cost ratio is drawn from the detailed assessments of the impact of new regulation produced by Government Departments and regulators. All Departments and regulators that introduce new regulation that has a significant cost or benefit must produce a full impact assessment which is published in an online library.
The Government are fully committed to ensuring that all new regulation is justified and proportionate and that the benefits outweigh the costs. It builds on commitments to increase transparency and accountability, following on from the publication of the Government's regulatory programme.
Regulation provides essential protections to employees, employers and citizens. Striking the right balance between costs and benefits is vital to make sure the regulatory framework is fit for the 21st century.
A copy of the report is being placed in the Libraries of both Houses.
Cabinet Office
Draft Census (England and Wales) Order 2009
The Minister of State, Cabinet Office (Angela E. Smith):
The Draft Census (England and Wales) Order 2009 in Council providing for a census to be taken in
England and Wales on Sunday 27 March 2011 has, today, been laid before Parliament. This Order specifies the persons by whom, and with respect to whom, returns are to be made and the topics on which questions are to be asked, and gives effect to the United Kingdom statistics authority's proposals which were set out in the Government's White Paper, "Helping to shape tomorrow", in December 2008.
The Census is the most important source of demographic and social statistics available in the UK today. It provides the underlying information needed to inform a wide range of policy debates and is used extensively to plan services and allocate funds to local areas.
The design for the new Census, as set out in the White Paper, builds upon the experience gained by the Office for National Statistics (ONS) from previous censuses and, in particular, from the lessons learned from the 2001 Census. The design takes account of the several formal recommendations from the Treasury Select Committee, the Public Accounts Committee and the former Statistics Commission. It also reflects the concerns more recently expressed by the Treasury Sub-Committee and others about the quality of national and local population statistics generally.
Consequently, a number of major changes are proposed in the design for 2011 compared with previous censuses.
Census forms will be delivered to households by post in the majority of cases.
There will be the facility to return the completed information online.
A central address register is being developed to facilitate improved form delivery and field management.
Tighter control of the field operation and the targeting of non-response follow-up will be facilitated by closer monitoring of the delivery of forms and receipt of returns through a questionnaire tracking system.
The recruitment, training and payment of field staff will be outsourced to specialist service providers.
The topics proposed for the 2011 Census are set out in the Draft Order, and cover those issues where information is most needed by the major users of census information. The questions have been devised to produce reliable and accurate data. ONS has carried out extensive consultations and testing over a number of years to ensure that the questions are justified, both in terms of the need for the information and public acceptability.
New questions are proposed on: national identity; citizenship; second residences; language; civil partnership status; date of entry into the UK and length of intended stay (for non-UK born); type of central heating; and number of bedrooms.
Copies of the 2011 Census questionnaire will be included as part of the Census regulations to be made early in 2010 following the Census Order.
Following devolution, separate legislative arrangements will be made in Scotland and Northern Ireland for the censuses there. However, the Census date proposed is common throughout the UK in order to maximise comparability, to minimise costs, and reduce public confusion.
Treasury
Anti-avoidance
The Financial Secretary to the Treasury (Mr. Stephen Timms): It is right that all taxpayers pay their fair share of tax. However, there are a minority who continue to seek ways to avoid paying their share. This is unacceptable. It is unfair on the majority of taxpayers, undermines fiscal sustainability, and reduces funding for public services. This Government will not tolerate tax avoidance or tax evasion in any form, and will act promptly to tackle both of these.
Several tax avoidance schemes have been notified to HM Revenue and Customs (HMRC) exploiting the sideways loss relief and double tax relief (DTR) rules, so I am today announcing changes to be made to legislation, with immediate effect, to counter these schemes.
As made clear by the Paymaster General in her written statement on 2 March 2007, Official Report, column 105WS and the introduction of anti-avoidance legislation in subsequent Finance Acts, the Government will not tolerate avoidance schemes designed to exploit sideways loss relief rules. The Government have recently become aware of a contrived and aggressive avoidance scheme that seeks to generate losses in a professional partnership for offset by users of the scheme against their other income or capital gains by way of sideways loss relief. This scheme relies on the creation of losses through a series of arrangements that are established for the purposes of tax avoidance.
The Government do not accept that these arrangements have the effect that is sought, but to remove any doubt, and to prevent scheme providers continuing to devise and operate even more contrived schemes that seek to challenge the sideways loss relief rules, I am announcing prompt and decisive action to protect the Exchequer.
With effect from today a general rule will be introduced to prevent sideways loss relief being given where the loss arises from arrangements and a main purpose of the arrangements is to obtain a tax reduction by means of sideways loss relief. This test does not impact on genuine loss-makers who have not entered into avoidance arrangements.
Legislation will be introduced in next year's Finance Bill. Full details of this measure including draft legislation will be issued on HMRC's website today.
Double tax relief: Unauthorised Unit Trusts
HMRC has been notified that unauthorised unit trusts are being used to avoid restrictions on double tax relief and to generate "repayments" of tax that the UK Exchequer has not received. To counter this, legislation will be introduced with the effect that to the extent any distribution treated as paid by a unauthorised unit trust is paid out of overseas income on which UK tax has been reduced by DTR, the distribution will be treated by the recipient as overseas income under deduction of overseas tax. The legislation will have effect from today.
A technical note setting out the details of this measure will be issued on HMRC's website today, with draft legislation to follow shortly.
Double tax relief: Manufactured Overseas Dividends
HMRC has been notified that some companies are using manufactured overseas dividends (MODs) instead of real overseas dividends in order to disapply the anti-avoidance rules in the DTR legislation.
To counter this, legislation will be introduced amending the relevant DTR anti-avoidance provision so that it applies to deemed overseas tax deducted from MODs in the same way that it applies to real overseas dividends. The amendment will ensure that the provision can also apply in other circumstances where the UK Tax Acts treat an amount that is not overseas tax as if it were overseas tax. These changes will prevent credits for notional overseas tax from being treated more favourably than tax credits on real dividends. The legislation will have effect from today.
A technical note setting out the details of this measure will be issued on HMRC's website today, with draft legislation to follow shortly.
Double tax relief: Manufactured Interest
HMRC has been notified that UK manufactured interest payments are being used to avoid tax under the rules relating to controlled foreign companies (CFCs) by artificial generation of DTR.
To counter this, regulations, coming into force today, will be made repealing rules that deem companies to have received UK manufactured interest under deduction of tax. Instead, the recipient will simply be taxed on the amount of manufactured interest it receives with no relief for any notional tax credit.
HMRC has identified a provision in separate regulations dealing with MODs that would allow substantially the same scheme to be implemented using MODs. To prevent this, regulations coming into force today will also be made ensuring that the MOD rules cannot be used to claim relief for overseas tax in inappropriate circumstances. Instead, the recipient will be taxed on the amount of the MOD it receives with no relief for any notional tax credit.
Both sets of regulations will be available on HMRC's website today.
Energy and Climate Change
Written Answer (Correction)
The Parliamentary Under-Secretary of State for Energy and Climate Change (Mr. David Kidney): I would like to inform the House that a written answer I gave on 12 October 2009, Official Report, column 445W to the hon. Member for Bassetlaw (John Mann) was incorrect.
It should not have included reference to the figures including services claims made under Chronic Obstructive Pulmonary Disease and Vibration White Finger schemes.
The number of coal health claims that were eligible for a Vibration White Finger services claim is shown in the table below.
We are unable to provide the number of Chronic Obstructive Pulmonary Disease claims that were eligible for a services claim as these figures are included within the schedule 11 calculations under the terms of the Claims Handling Agreement, and it is not possible to isolate them.
| Claimants' Representatives | Location | Number of claims | Claim eligible for services | Claim eligible for services that have been settled |
| Next Section | Index | Home Page |