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2 Dec 2010 : Column 978W—continued
EU Grants and Loans: Republic of Ireland
Mr Cash: To ask the Chancellor of the Exchequer (1) what legal advice he has (a) sought and (b) received on the compliance of the actions of each relevant EU institution (i) preparatory to and (ii) during the negotiation of a programme of financial support for the Republic of Ireland with the procedure prescribed in article 3 of the Council Regulation establishing the European Financial Stability Mechanism; [25892]
(2) what assessment he has made of the compliance of the actions of each relevant EU institution in respect of negotiations (a) preparatory to and (b) in respect of a programme of financial support for the Republic of Ireland with the procedure prescribed in article 3 of the Council Regulation establishing the European Financial Stability Mechanism. [25894]
Mr Hoban [holding answer 23 November 2010]: The terms of operation of the European Financial Stability Mechanism are set out in EU Council Regulation No. 407/2010. In accordance with Paragraph 1 of Article 3 of this Regulation, and following a request from Ireland for Union financial assistance on 21 November, discussions with the European Commission and European Central Bank (ECB) are under way.
The Government have full confidence that all relevant EU institutions strictly adhere to and comply with the terms set out in Article 3 of the Council Regulation.
Marginal Deductions
Mr Douglas Alexander: To ask the Chancellor of the Exchequer which measures announced in the (a) June 2010 Budget and (b) comprehensive spending review he expects to increase marginal deduction rates for households. [26641]
Justine Greening: When estimating changes to marginal deduction rates, it is reform to the tax and benefit system as a whole that is important to households, rather than certain subsets of the system. Annex A of the June Budget sets out estimates of the numbers of families subject to varying marginal deduction rates in 2010-11, and in 2011-12 following the implementation of planned measures included in the March Budget (e.g. the increase in national insurance rates of 1%), and the June 2010 Budget (e.g. the increase of 2% in the taper rate of tax credits).
At spending review, the Government announced the new universal credit, introduced over two Parliaments, which will replace the current complex system of means-tested working-age benefits with a simple streamlined payment. The universal credit will improve financial work incentives by ensuring that support is reduced at a consistent and managed marginal deduction rate (generally at no more than around 76 pence in the pound as compared with 96 pence currently) as people return to work and increase their working hours and earnings.
Members: Correspondence
Mr Sanders: To ask the Chancellor of the Exchequer when he plans to respond to the letter of 1 October 2010 from the hon. Member for Torbay on low value consignment relief. [27606]
Mr Gauke: I have replied to the hon. Member.
Mortgages
Mr Betts: To ask the Chancellor of the Exchequer (1) what research he has evaluated on the likely effects on access to mortgages of the Financial Services Authority's mortgage market proposals; [27602]
(2) what assessment he has made of the effects of the Financial Services Authority's mortgage market proposals on the operation of the housing market; [27603]
(3) what assessment he has made of the evidential basis for the Financial Services Authority's assessment of the effects on house prices of implementation of the authority's mortgage market proposals. [27604]
Mr Hoban: The Government are committed to a healthy housing and mortgage market.
The Financial Services Authority (FSA) is conducting a wholesale review of mortgage regulation in the UK, the 'Mortgage Market Review'.
The Government believe that it is right for the FSA to ensure that the UK mortgage market has responsible lending practices. We will continue to work with the FSA, mortgage lenders and intermediaries, and consumer groups to ensure a mortgage market that is sustainable for all participants.
The FSA published 'Mortgage Market Review: Responsible Lending' in July. This paper forms one part of an ongoing consultation process.
The FSA has stated that it will fully assess the potential impact on the market before implementing any rule changes.
Mr Betts: To ask the Chancellor of the Exchequer what assessment he has made of the comparative effects on potential new house-buyers of (a) the Financial Services Authority's responsible mortgage-lending proposals and (b) the lending proposals of the European Commission. [27605]
Mr Hoban: The Government are committed to a healthy housing and mortgage market. The Financial Services Authority (FSA) is conducting a wholesale review of mortgage regulation in the UK, the 'Mortgage Market Review'.
The Government believe that it is right for the FSA to ensure that the UK mortgage market has responsible lending practices. We will continue to work with the FSA, mortgage lenders and intermediaries, and consumer groups to ensure a mortgage market that is sustainable for all participants.
The FSA published 'Mortgage Market Review: Responsible Lending' in July. This forms one part of an ongoing consultation process.
The FSA has stated that it will fully assess the potential impact on the market before implementing any rule changes.
The European Commission has not yet announced any proposals on responsible lending. Should any proposals be put forward, the Secretariat-General requires that all Commission initiatives with significant impacts be supported by an impact assessment.
National Insurance Contributions: Portsmouth
Penny Mordaunt: To ask the Chancellor of the Exchequer what estimate he has made of the revenue forgone through (a) implementing and (b) administering an employers' national insurance contribution holiday scheme in the Portsmouth city council area in the period to which the provisions of the holiday scheme under the National Insurance Contributions Bill will apply. [26315]
Mr Gauke
[holding answer 25 November 2010]: The Government have no plans to introduce national insurance
contribution exemptions based on city council areas. The regional national insurance holiday for new businesses is targeted at those regional labour markets most reliant on public sector employment. Labour markets generally extended much wider than city council area boundaries. For this reason, and for reasons of administrative practicality, eligibility for the holiday is defined by region. The Government have made no estimate of the impacts of such options.
Social Security Benefits
Mr Douglas Alexander: To ask the Chancellor of the Exchequer what assumptions he used in respect of levels of long-term unemployment when making his forecast for social security spending in each year to 2015. [24777]
Chris Grayling: I have been asked to reply.
The Department for Work and Pensions uses the claimant count unemployment forecasts published by the Office for Budget Responsibility to forecast social security spending.
The Office for Budget Responsibility published an updated claimant count forecast on 29 November.
Mr Douglas Alexander: To ask the Chancellor of the Exchequer what estimate of the average monetary cost to the Exchequer of each additional person claiming jobseeker's allowance he used in making his forecast for social security spending in each year to 2015. [24778]
Chris Grayling: I have been asked to reply.
The information is in the table.
| Average annual cost per jobseeker's allowance claimant | |
| £ | |
| Notes: 1. Figures are consistent with the Office for Budget Responsibility's Economic and Fiscal Outlook published on 29 November 2010. 2. Figures include jobseeker's allowance, housing benefit and council tax benefit. 3. Figures have been rounded to the nearest £100. | |
Social Security Benefits: Expenditure
Mr Douglas Alexander: To ask the Chancellor of the Exchequer (1) what changes were made between the forecasts of expenditure on each benefit type made in (a) the Office for Budget Responsibility pre-budget forecast and (b) the June 2010 Budget; and which such changes were attributable to (i) decisions on policy and (ii) changes to economic forecasts; [26088]
(2) whether any revisions were made to the economic forecast by the Office for Budget Responsibility between the pre-Budget forecast and the Budget forecast due to changes in marginal deduction rates in the proposals of the June 2010 Budget. [26258]
Justine Greening: The information requested falls within the responsibilities of the Office for Budget Responsibility (OBR), and I have asked the OBR to reply.
Students: Loans
Dr Pugh: To ask the Chancellor of the Exchequer what controls he exercises over arrangements made by the Student Loans Company to securitise its loans. [27551]
Mr Gauke: The Shareholder Executive in the Department for Business, Innovation and Skills has lead responsibility for exploring options to monetise the Student Loan Portfolio including looking at securitisation options. This work is ongoing and the Government intend to reach a decision on whether and how to monetise the portfolio by Budget 2011. The Student Loans Company is owned by the Department for Business, Innovation and Skills and the Scottish Executive.
Tax Yields
Mr David Davis: To ask the Chancellor of the Exchequer (1) how many settlements under controlled foreign companies legislation have yielded (a) under £1 million, (b) between £1 million and £10 million, (c) between £10 million and £100 million, (d) between £100 million and £1 billion and (e) above £1 billion in each of the last three financial years; and what the total yield was from all such settlements; [25723]
(2) how much tax was at risk in cases under controlled foreign companies legislation in each of the last three years; and in how many cases the tax at risk was (a) under £1 million, (b) between £1 million and £10 million, (c) between £10 million and £100 million, (d) between £100 million and £1 billion and (e) above £1 billion; [25724]
(3) how many cases have been settled under controlled foreign companies (CFC) legislation so as to produce lower yields to HM Revenue and Customs than would have been the case if such legislation had been applied in full in each of the last three financial years; how many of these settlements were (a) under £1 million, (b) between £1 million and £10 million, (c) between £10 million and £100 million, (d) between £100 million and £1 billion and (e) above £1 billion; and what the total difference is between the level of the settlements and the maximum which would have been due if the CFC legislation had been fully applied. [25725]
Mr Gauke [ holding answer 22 November 2010]: It is difficult to give a precise answer to this question as the CFC inquiry is often part of a wider investigation and a settlement of a CFC dispute may have been included in an overall settlement figure. There is also a danger that providing the information in the format requested could lead to the identification of specific taxpayers. Our best estimates of the total yield and the number of settlements falling within the following bands are:
| 2007-08 | 2008-09 | 2009-10 | |
The total recorded yield from all the identified CFC settlements in the last three financial years (2007-08 to 2009-10), is £719,446,086.
The amount of tax at risk in respect of any UK company with a holding in a CFC depends on the facts and until an inquiry is completed cannot be more than an estimate. As the facts are established during the course of an inquiry, the tax at risk in any case fluctuates as the inquiry proceeds. Consequently it is not possible to provide an answer to this question.
In every case where a CFC inquiry has been settled in each of the last three financial years, the CFC rules have been applied in full to establish the extent of any liability, or in some cases that there is no liability.
Taxation
Mr Nicholas Brown: To ask the Chancellor of the Exchequer what his most recent estimate is of the contribution to the UK tax base of each sector of the economy. [26691]
Mr Gauke: Her Majesty's Revenue and Customs produces a breakdown by broad industrial sector for corporation tax, pay-as-you-earn income tax and class 1 national insurance contributions (NICs) and value added tax (VAT).
Historical figures for corporation tax receipts paid by several broadly-defined business sectors are regularly updated and published in Table 11.1, on the HMRC National Statistics website. Receipts information is currently available up to 2009-10. The sectors are defined by HMRC's Summary Trade Classifications. The latest update is available here:
PAYE income tax and class 1 NICs received by HMRC in respect of employee and employer liabilities in 2009-10 are split by sector as follows:
| 2009-10 | |
| Sector | £ billion |
The sectors are defined by the Office for National Statistics' Standard Industrial Classification 2003. The occupational pensions figure in the table above includes all income tax on occupational pensions regardless of the sector in which the person was previously employed.
Declared VAT is published by trade group in the VAT factsheet, table 2.3:
Given that sectors for corporation tax and VAT and PAYE income tax and class 1 NICs are defined differently these sets of figures are not directly comparable.
Taxation: Carbon Emissions
Mr Bain: To ask the Chancellor of the Exchequer what proposals his Department has for the (a) taxation of and (b) establishment of a floor price for carbon. [27426]
Justine Greening: The Budget announced that the Government would publish proposals to establish greater support and certainty to the carbon price by reforming the climate change levy.
A consultation will be published shortly. Subject to consultation, the Government intend to bring forward legislation in Finance Bill 2011.
Taxation: Private Rented Housing
Graham Jones: To ask the Chancellor of the Exchequer how many private sector landlords required to pay tax arrears by HM Revenue and Customs in the latest period for which figures are available are resident (a) in the UK and (b) overseas. [26185]
Mr Gauke: HM Revenue and Customs does not hold this information; I would however refer the hon. Member to the answer I gave him on 30 November 2010, Official Report, column 682W.
VAT
Mr Douglas Alexander: To ask the Chancellor of the Exchequer what estimate he has made of the average annual cost of the January 2011 increase in the rate of value added tax to each income decile of retired households. [26252]
Mr Gauke: The Government are committed to reducing the Budget deficit while supporting the most vulnerable. Many essential items that pensioners buy are zero-rated, while others are reduced-rated. Additionally, the Government are committed to providing fair support to pensioners, and will uprate the basic state pension by a triple guarantee of earnings, prices and 2.5%-whichever is highest-from April 2011. The Government will increase the basic state pension in April 2011 by at least the equivalent of RPI.
Additionally, as stated by the Institute for Fiscal Studies, expenditure might be a better proxy for lifetime resources than current income, and as such it might be more appropriate to use expenditure deciles for this type of analysis. Chart A3 and A4 in Annex A of the June Budget set out the impacts of indirect tax changes by expenditure deciles, and show that these changes in cash and percentage terms are progressive.
The following table provides estimates in 2011-12 for the average annual cost by income decile of pensioner households from the change in the rate of value added tax. Note these estimates are rounded to the nearest £5.
| Income decile of pensioner households | Average loss (£ per year) |
These estimates provided here have been calculated from HM Treasury's tax and benefit static micro-simulation model using Expenditure and Food Survey 2005 to 2008 data uprated to 2011-12 levels of prices and earnings. The model does not take into account behavioural changes in response to changes to the tax and benefit system or economic conditions and so there is significant uncertainty around the true impact of the value added tax change on retired households.
Timber
Mr Bain: To ask the Chancellor of the Exchequer what assessment he has made of the compliance of (a) his Department, (b) its agencies and (c) its non-departmental public bodies with the UN Food and Agriculture Organisation's criteria for sourcing sustainable timber. [27842]
Justine Greening: HM Treasury Group (including: the Asset Protection Agency, the Debt Management Office and the Office for Budget Responsibility) apply the UK Government guidelines for timber procurement policy as specified by 'the Central Point of Expertise on Timber' on behalf of the Department for Environment, Food and Rural Affairs.
The furniture procured by HM Treasury Group is sourced from framework suppliers that comply with the Government Buying Standards. The Government Buying Standard for furniture requires that timber must be purchased in accordance with UK timber procurement policy.
Defence
Afghanistan and Iraq: Peacekeeping Operations
Nic Dakin: To ask the Secretary of State for Defence how many military personnel (a) who were killed and (b) who lost a limb in operations in (i) Iraq and (ii) Afghanistan were aged 21 years or younger. [27663]
Nick Harvey: Between 7 October 2001 and 25 November 2010, 37 UK Service personnel aged 21 or under have died as a result of deployment to Op Telic (Iraq), of which 31 were the result of hostile action. 86 UK service personnel aged 21 or under died as a result of deployment to Op Herrick (Afghanistan), of which 82 were the result of hostile action.
Between 1 April 2006 and 31 December 2009, fewer than five UK service personnel aged 21 or under have suffered a traumatic or surgical amputation as a result of an injury sustained while deployed on Op Telic (Iraq). 33 UK service personnel aged 21 or under have
suffered a traumatic or surgical amputation as a result of an injury sustained while deployed on Op Herrick (Afghanistan). These range from the loss of part of a finger or toe up to the loss of entire limbs. Figures for 2010 will be available in the new year. Numbers have not been verified prior to 1 April 2006.
Afghanistan: Peacekeeping Operations
Dr Julian Lewis: To ask the Secretary of State for Defence what the average response time was for (a) Harriers and (b) Tornados when deployed in Afghanistan following a call for close air support from air troops in action in each of the last two years. [23694]
Nick Harvey [ holding answer 16 November 2010]: I am withholding the information as its disclosure would, or would be likely to, prejudice the capability, effectiveness or security of the armed forces. However, I can confirm that there are no significant differences between the response times of these aircraft.
Mrs Moon: To ask the Secretary of State for Defence (1) what the cost was of supplying UK forces serving in Afghanistan utilising truck convoys from Pakistan in each of the last four years; and if he will make a statement; [26840]
(2) which trucking companies are contracted by his Department to supply UK forces in Afghanistan; and if he will make a statement. [26925]
Nick Harvey: The Ministry of Defence (MOD) currently uses SEAFAST Logistics to deliver materiel from UK depots to Camp Bastion and Kandahar in Afghanistan through a multi-modal transport contract. The element covering transportation by road in Pakistan and Afghanistan has been sub-contracted.
The MOD has a contract with Purple Foodservice Solutions to provide food to UK personnel deployed in the UK and overseas, currently including Afghanistan. Purple Foods is a consortium of three companies, including Supreme Foodservice, who handle logistic arrangements from the UK into Afghanistan via Pakistan.
We do not have visibility of payments made under the sub-contracts placed by SEAFAST or Supreme Foodservice for transportation within Pakistan and Afghanistan and the costs are not therefore separately identified within amounts paid by us.
Andrew Rosindell: To ask the Secretary of State for Defence how many force elements at readiness are required to provide close air support in Afghanistan on a long-term basis. [26870]
Nick Harvey: I am withholding the information as its disclosure would, or would be likely to, prejudice the capability, effectiveness or security of the armed forces.
Mr Jim Murphy: To ask the Secretary of State for Defence what assessment his Department has made of the readiness of the Afghan national security forces to take control of security in Afghanistan by the end of 2014. [26961]
Nick Harvey [holding answer 29 November 2010]: The NATO Training Mission Afghanistan, of which UK forces form an important part, provides regular assessments of the ability of the Afghan national army and the Afghan national police.
As at the middle of November, the strength of the Afghan national security forces stands at around 144,000 for the Afghan national army, and around 116,000 for the Afghan national police. We assess that the growth in both capacity and capability of the Afghan forces is on track to meet the target of transferring lead responsibility for security to the Afghan forces by the end of 2014.
Mr Jim Murphy: To ask the Secretary of State for Defence with what frequency, and by what means, the Government plan to assess the readiness of the Afghan national security forces to take control of security in Afghanistan by the end of 2014. [26962]
Nick Harvey [holding answer 29 November 2010]: The NATO Training Mission Afghanistan (NTM-A), of which UK forces form an important part, assesses on a monthly basis the ability of the Afghan national army by brigade and corps and assesses the ability of the Afghan national police by province.
The assessments rate the units based on their ability to operate with varying degrees of international security assistance force (ISAF) support. These assessments will continue in order to ensure that Afghan forces are ready to take the lead for security as the process of transition moves forward.
Air Force: Military Bases
Sir Menzies Campbell: To ask the Secretary of State for Defence how much was spent under each budgetary heading on running costs for each RAF base in the UK in each of the last five financial years; and what the equivalent figures are for 2010-11. [27579]
Nick Harvey: Under the current budgetary structure, the available figures for expenditure for RAF Stations in the UK since financial year 2005-06 and their planned budgets for financial year 2010-11 are contained in the following table. Expenditure on satellite and lodger units is included in the figures for the appropriate parent station. Service personnel pay costs are not attributable to individual stations from financial year 2009-10 and beyond.
| Expenditure by station 2006-07 | |||||||
| £ million | |||||||
| Personnel | Infrastructure | Inventory/Other consumption | Equipment support costs | Other costs | Receipts and other income | Total | |
| (1) Not available. | |||||||
| Expenditure by station 2007-08 | |||||||
| £ million | |||||||
| Personnel | Infrastructure | Inventory/Other consumption | Equipment support costs | Other costs | Receipts and other income | Total | |
| Expenditure by station 2008-09 | |||||||
| £ million | |||||||
| Personnel | Infrastructure | Inventory/Other consumption | Equipment support costs | Other costs | Receipts and other income | Total | |
| Expenditure by station 2009-10 | |||||||
| £ million | |||||||
| Personnel (Civilian) | Infrastructure | Inventory/Other consumption | Equipment support costs | Other costs | Receipts and other income | Total | |
| Planned budget by station 2010 -1 1 | |||||||
| £ million | |||||||
| Personnel (Civilian ) | Infrastructure | Inventory/Other consumption | Equipment support costs | Other costs | Receipts and other income | Total | |
Sir Menzies Campbell: To ask the Secretary of State for Defence what plans he has for the future of RAF Leuchars; and if he will make a statement. [27581]
Nick Harvey: The Strategic Defence and Security Review (SDSR) had implications for the entire Defence Estate. Changes to the Royal Air Force force structure mean that RAF Kinloss and two other bases will not be required by the RAF; re-basing of forces in Germany is being accelerated; and greater efficiencies need to be made through estate rationalisation. The Ministry of Defence is now addressing the full range of defence estate issues involved so as to identify and subsequently deliver a long term cost effective solution for defence basing and the estate as a whole.
This is inevitably a complex piece of work going beyond the bases directly affected by the SDSR. No decisions have yet been made, including on the potential future use of those bases affected, and we do not expect to be in a position to make those decisions until spring 2011.
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