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TREASURY
Child Tax Allowance
Mr. Frank Field: To ask the Chancellor of the Exchequer how many claimants (a) would cease to be eligible for family credit, housing benefit and other means tests if a child tax allowance was re-introduced and set each at multiple of £100 up to an including £1,000 and (b) would cease to pay tax at each charge; if he will estimate the cost in gross and net terms of such a charge; how many tax payers would not have a high enough income to use each of the tax allowances; and if he will estimate an average amount of unused allowances for each £100 median in child tax allowances. [9935]
Mr. Jack:
Information for 1995-96 is given in the tables. It has been assumed that either partner of a married couple may use such a child tax allowance. Estimates in the tables have been produced for three of the multiples of £100. Estimates for all 10 multiples could be provided only at disproportionate cost.
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| Number of recipients of: | ||||||||
|---|---|---|---|---|---|---|---|---|
| Tax | Family credit | Housing benefit | Council tax benefit | Income support | ||||
| allowance per child | No longer eligible | Taken(2) out of tax | No longer eligible | Taken(2) out of tax | No longer eligible | Taken(2) out of tax | No longer eligible | Taken(2) out of tax |
| (under 16) | (000) | (000) | (000) | (000) | (000) | (000) | (000) | (000) |
| £100 | (3)-- | 10 | (3)-- | (3)-- | (3)-- | (3)-- | (3)-- | (3)-- |
| £500 | 10 | 30 | 10 | 20 | (3)-- | 20 | (3)-- | (3)-- |
| £1,000 | 20 | 60 | 10 | 30 | (3)-- | 30 | (3)-- | (3)-- |
(2) Husbands and wives treated separately.
(3) Denotes estimates of less than 5,000.
The total numbers of claimants no longer eligible for any means-tested benefit or taken out of tax cannot be obtained by adding together the estimates for each benefit. This is because claimants for one benefit are often also claiming one or more of the other benefits. It is only possible to provide figures for claimants of each benefit separately.
These estimates are based on data drawn from the 1991 1992 and 1993 Family Expenditure Surveys uprated to 1995-96 price and benefits levels. Income related benefit cases have been calibrated to those contained in the 1995 DSS Departmental Report.
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| Tax allowance per child | Exchequer cost | Net cost(4) | Married couples and single individuals taken out of tax | Average amount of unused child tax allowances(5) |
|---|---|---|---|---|
| (under 16) | £ million | £ million | (thousand) | £ per child |
| £100 | 250 | 240 | 50 | 98 |
| £500 | 1,200 | 1,150 | 200 | 465 |
| £1,000 | 2,300 | 2,200 | 350 | 902 |
(4) Tax revenue cost less reductions in means-tested benefits.
(5) This is the average for those who have an unused allowance.
These estimates are based on information projected from the 1993 Family Expenditure Survey and are therefore provisional.
Unemployment
Ms Gordon:
To ask the Chancellor of the Exchequer what estimates he has made to the value of the economy of a reduction of unemployment by 100,000 assuming normal cost-benefit assumptions. [12600]
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Mr. Waldegrave:
A fall of 100,000 in unemployment in the UK is a strong signal of the fundamental strength of the UK's economy, and unemployment in the UK has fallen by 741,600 since December 1992 as a result of Government policies.
Estimating the overall numerical value of a reduction in unemployment of 100,000 requires several heroic assumptions. However, the Department of Social Security's departmental report shows that a variation in unemployment of 100,000, assuming the 100,000 have the same characteristics as the existing unemployed population, would change total expenditure on benefits paid to the unemployed by £385 million in 1995-96.
Mr. Mike O'Brien:
To ask the Chancellor of the Exchequer what was the percentage of taxation taken in (a) direct and (b) indirect taxation in (i) 1979-80, (ii) 1985-86 and (iii) 1995-96. [11126]
Mr. Jack:
The national accounts distinguish between taxes on income and capital, and taxes on expenditure. Social security contributions are identified separately. The
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table presents the information requested on this basis. Rates and community charge/council tax are shown separately so as to avoid the distortion to the series
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resulting from the 1990 switch from domestic rates to community charge. The table also shows equivalent figures for 1978-79.
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| Year | Taxes on income(6) | Taxes on expenditure(7) | Taxes on capital | Rates(8) council tax, community charge | Social security contributions |
|---|---|---|---|---|---|
| 1978-79 | 40¼ | 31 | 1½ | 10 | 17½ |
| 1979-80 | 38 | 34½ | 1½ | 9½ | 16½ |
| 1985-86 | 39 | 31½ | 1¾ | 10 | 17¾ |
| 1995-96(9) | 37½ | 35¼ | 1 | 8¾ | 17½ |
(6) Excludes community charge and council tax.
(7) Excludes rates.
(8) Business rates from 1990.
(9) Budget forecast.
Totals may not sum to 100 due to rounding.
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Employment (Year-on-year Change)
Mr. Gordon Prentice: To ask the Chancellor of the Exchequer what has been the year-on-year change in employment in the United Kingdom, Belgium, France and the Netherlands for each year since 1987. [12599]
Mrs. Angela Knight: The latest available information is shown in the table. For Belgium, France and the Netherlands, it is for the period 1986 to 1993.
| United Kingdom | Belgium | France | Netherlands | |
|---|---|---|---|---|
| 1986-87 | 489 | -49 | -116 | 554 |
| 1987-88 | 929 | 10 | 109 | 59 |
| 1988-89 | 829 | 103 | 241 | 120 |
| 1989-90 | 247 | 39 | 128 | 244 |
| 1990-91 | -536 | 94 | 241 | 146 |
| 1991-92 | -587 | 51 | -94 | 194 |
| 1992-93 | -301 | -26 | -113 | 26 |
| 1993-94 | 186 | -- | -- | -- |
| 1994-95 | 276 | -- | -- | -- |
Note:
(10) Unadjusted.
Source:
UK (CSO, Labour Force Survey); Belgium, France and Netherlands (Eurostat).
Reference period:
Year on year changes for UK, Belgium and France based on spring employment figures and for Netherlands on average of January to June employment figures.
Privatisation
Mr. Pike: To ask the Chancellor of the Exchequer if he will list the proceeds from privatisation indicating source and cash in real terms and constant value terms in each year since 1979. [12854]
Mr. Jack:
Table 5.6 to the statistical supplement to the "Financial Statement and Budget Report 1995-96" (HMSO Cm 2821) gives privatisation proceeds by source in cash terms. The table sets out the annual proceeds in cash and real terms at 1995-96 prices.
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| Year | Cash | Constant 1995-96 prices |
|---|---|---|
| 1979-80 | 0.4 | 1.0 |
| 1980-81 | 0.2 | 0.5 |
| 1981-82 | 0.5 | 1.0 |
| 1982-83 | 0.5 | 0.8 |
| 1983-84 | 1.1 | 2.0 |
| 1984-85 | 2.1 | 3.4 |
| 1985-86 | 2.7 | 4.3 |
| 1986-87 | 4.5 | 6.9 |
| 1987-88 | 5.1 | 7.5 |
| 1988-89 | 7.1 | 9.7 |
| 1989-90 | 4.2 | 5.4 |
| 1990-91 | 5.3 | 6.4 |
| 1991-92 | 7.9 | 8.9 |
| 1992-93 | 8.2 | 8.8 |
| 1993-94 | 5.4 | 5.7 |
| 1994-95 | 6.4 | 6.6 |
| 61.6 | 78.9 |
Mr. Pike: To ask the Chancellor of the Exchequer if he will list the golden shares held by Her Majesty's Government in the privatised industries, indicating when these lapse. [12853]
Mr. Jack: The remaining special or golden shares and their expiry dates, where applicable, are as follows:
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