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Inflation
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his answer of 21 February 2000, Official Report, column 769W, on inflation, if regional price data have been made available to the European Commission for use in calculating regional GDP per head; and what plans the Chancellor has to instruct the Office for National Statistics to publish regional price and real GDP data for the UK. [113470]
Miss Melanie Johnson: The information requested falls within the responsibility of the Director of the Office for National Statistics. I have asked him to reply.
Letter from Tim Holt to Mr. Matthew Taylor, dated 8 March 2000:
- As Director of the Office for National Statistics (ONS), I have been asked to reply to your recent question on whether regional price data have been made available to the European Commission for use in calculating regional GDP per head, and any plans the Chancellor has to instruct the ONS to publish regional price and real GDP data for the UK.
- Regional GDP per head is calculated from estimates of regional GDP converted on to a common currency using Purchasing Power Parities (PPPs). The PPPs used in the calculation are based on national average prices and the same average PPP is applied to each region within a country.
- The Office for National Statistics has no plans to publish regional price and real GDP data for the UK.
Low-income Households
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer how many earners in the UK earn less than £60 per week; how many households in the UK contain an earner who earns less than £60 per week; and what changes there have been in these numbers since 1980. [113469]
Miss Melanie Johnson: The information requested falls within the responsibility of the Director of the Office for National Statistics. I have asked him to reply.
8 Mar 2000 : Column: 772W
Letter from Tim Holt to Mr. Matthew Taylor, dated 8 March 2000:
- As Director of the Office for National Statistics (ONS), I have been asked to reply to your parliamentary question concerning people earning less than £60 per week.
- The Labour Force Survey (LFS) is the ONS's major source of labour market data on individuals. It can provide information on the earnings of employees and the number and proportion of employees earning below £60. However, LFS estimates on earnings are only available from winter (December to February) 1992/3. Estimates for the autumn (September to November) quarters of 1993, 1997 and 1999 are given in the table below. The figures are for Great Britain and are not seasonally adjusted.
| Autumn | 000s |
|---|---|
| 1993 | 2,466 |
| 1997 | 2,254 |
| 1999 | 1,849 |
Source:
ONS, Labour Force Survey
The LFS has no information available on the number of households containing an earner who earns less than £60 per week.
Estimates from the Family Resources Survey for the period 1997-98 covering Great Britain show that the ratio between the number of households, where at least one earner earns less than £60 a week, and the number of individuals earning less than £60 a week is 96 per cent.
IR35
Mr. Drew: To ask the Chancellor of the Exchequer what is the maximum amount of (a) national insurance and (b) personal taxation that an individual will pay under the changes caused by the introduction of IR35. [112989]
Dawn Primarolo [holding answer 3 March 2000]: The amount of personal tax and National Insurance Contributions that a personal service company will have to pay following the introduction of IR35 will depend on individual circumstances. It is not possible to provide estimates of the maximum amounts payable.
Mr. Ottaway: To ask the Chancellor of the Exchequer what is the expected net revenue gain from the introduction of IR35; and what assumptions the Government have made as to the number of business closures and the extent of business migration overseas for the purposes of calculating this figure. [112763]
Dawn Primarolo: Estimates of the revenue which will arise from the proposed measure to stop avoidance of tax and National Insurance Contributions using personal service companies were included in the Financial Statement and Budget Report published on Budget Day in March 1999. Information on the assumptions used was included in the Regulatory Impact Assessment on the Welfare Reform and Pensions Bill which was published in October 1999.
Mr. Ottaway: To ask the Chancellor of the Exchequer how many contractors operating through personal service companies have moved overseas (a) in each year since 1992 and (b) in the last year for which figures are available; and what is his Department's estimate for each of the next three years. [112764]
8 Mar 2000 : Column: 773W
Dawn Primarolo: I regret that this information is not available.
Mr. Ottaway: To ask the Chancellor of the Exchequer if he will estimate, broken down by industrial sectors, the extra taxation that the introduction of IR35 will place on contractors operating through personal service companies (a) next year, (b) in 2001-02 and (c) in 2002-03, assuming current levels of tax rates. [112765]
Dawn Primarolo: I regret that it is not possible to provide a breakdown of the tax liability arising from the introduction of IR35 by industrial sector which prevents avoidance of tax and NICs. However, a breakdown of the 50,000 personal service companies that are estimated to be affected by this measure by broad industry group is provided in the Regulatory Impact Assessment on the Welfare Reform and Pensions Bill published in October 1999.
Mr. St.Aubyn: To ask the Chancellor of the Exchequer what is his estimate of the extra revenue which will arise as a result of the introduction of IR35. [112858]
Dawn Primarolo: Estimates of the revenue which will arise from the proposed measure to stop avoidance of tax and National Insurance Contributions using personal service companies were included in the Financial Statement and Budget Report published on Budget Day in March 1999.
Mr. St. Aubyn: To ask the Chancellor of the Exchequer which sectors of industry benefit most from the rules on national insurance contributions that would be changed under IR35 proposals. [112859]
8 Mar 2000 : Column: 774W
Dawn Primarolo: All sectors of industry will benefit from the changes we propose. IR35 will prevent avoidance of NIC and right level of tax, allowing us to target support on the real entrepreneurs.
Government Debt
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his answers of 19 January 2000, Official Report, column 516W, on Government debt over the 1975 to 1999 period, what the estimated interest cost of the difference between nominal and gross debt values is; what measures have been undertaken to ensure this will not occur again; and which officials responsible for the debt funding decisions have been disciplined in connection with this matter. [113468]
Miss Melanie Johnson: The answer of 19 January 2000, Official Report, column 516W, on Government debt gave figures for central Government gross debt at (a) nominal and (b) market prices. These are two different valuations of the same debt and so the interest on them would always be the same. The reason for this is that the market values the debt, some of which may have been issued when market conditions for interest rates were different, to reflect current yields. Thus actual interest divided by debt at market valuation is in line with current rates of interest, whereas actual interest divided by nominal debt reflects the mix of historic market conditions when the debt was issued.
Taxation (Spouses)
Mr. Willetts: To ask the Chancellor of the Exchequer what his policy is on the principle of independent taxation of husband and wife. [113580]
Dawn Primarolo: The Chancellor stated his commitment to the principle of independent taxation of husbands and wives when he gave evidence to the Treasury Committee in March 1999.