Category: Chief Secretary (1987-1989)

Below is the text of Mr Major’s written Parliamentary Answer on Small Businesses on 24th July 1989.

Mr. David Shaw To ask the Chancellor of the Exchequer if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months compared with the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.

Mr. Major The Government’s economic policies are designed to maintain a vigorous economy in which business and enterprise can flourish. Over the last 12 months we have continued our commitment to this goal. Among the specific measures helpful to small businesses introduced in the last Budget were for the small companies’ lower corporation tax rate of 25 per cent. profit limit raised by 50 per cent. to £150,000 and the limit for receiving transitional relief raised to £750,000; simplification of pensions rules and substantial increases in personal pension contribution limits; improved tax reliefs designed to encourage employee participation in PRP and employee share schemes (including ESOPS); abolition of close company apportionment rules; introduction of the receipts basis of schedule E (a simpler system for the assessment of earnings). extended relief for pre-trading expenditure; VAT registration threshold raised broadly in line with inflation; CGT gifts relief retained for business assets.

We are continually looking at ways of reducing the burdens on small businesses. In addition to the continuous review of forms, explanatory notices and leaflets with the aim of providing guidance which can be easily understood, the following changes have been achieved in the last 12 months: The completion of the computerisation of PAYE and extension throughout the country of computerisation of the tax affairs of the self-employed. From 1 July 1989 the scope of the Community carnet was extended. Development work has taken place for the introduction on 1 August 1989 of two fast lane systems which will speed up the clearance of certain EC imports. Development work is proceeding on a new computerised system for the handling of import export freight which will speed up the clearance of goods. We have also carried out thorough examinations of:

The VAT cash accounting scheme;
Default surcharge;
VAT bad debt relief;
Export data capture;
VAT second hand schemes; and
PAYE communications between employers and the Inland Revenue

The results of these reviews are under consideration.

Below is the text of Mr Major’s written Parliamentary Answer on Engagements on 24th July 1989.

Mr. Siliars To ask the Chancellor of the Exchequer if he will list his engagements when he expects to make a major speech on the economy.

Mr. Major My right hon. Friend will be speaking on a number of occasions over the next few months, including the IMF/IBRD meetings in Washington (26–28 September), the Conservative Party conference (10–13 October) and at the Mansion house (19 October).

Below is the text of Mr Major’s written Parliamentary Answer on Balance of Trade on 20th July 1989.

Mr. Allen To ask the Chancellor of the Duchy of Lancaster (1) if he has made an estimate of the balance of trade with Germany in 1992;
(2) if he has made an estimate of the United Kingdom’s balance of trade with the European Community in 1992.

Mr. Major I have been asked to reply.

No.

Below is the text of Mr Major’s written Parliamentary Answer on Manufacturing Investment on 20th July 1989.

Mr. Allen To ask the Chancellor of the Duchy of Lancaster what was the amount of net manufacturing investment in new buildings, machinery and plant in the period 1980 to 1988; and what was the comparable figure for 1971 to 1979.

Mr. Major I have been asked to reply.

The latest estimates of net domestic fixed capital formation by manufactured industry for 1977–87 appear in the 1988 edition of the Central Statistical Office publication “United Kingdom National Accounts”, table 13.5. Estimates for earlier years may be obtained from the CSO Databank, a collection of macroeconomic time series in computer readable form to which the House of Commons Library has direct access. Estimates for 1988 are not yet available. Separate estimates of net investment in new buildings and works, and plant and machinery are not of publishable quality.

The published figures do not include capital goods leased from financial sector lessors. Furthermore, there are difficulties in measuring net domestic fixed capital formation since the national accounts estimates of the economic lives of fixed assets, used to estimate capital consumption, are very broad brush.

Below is the text of Mr Major’s written Parliamentary Answer on Fixed Investments on 20th July 1989.

Mr. Allen To ask the Chancellor of the Exchequer what was the increase in 1988 of fixed investments expressed as a percentage of total fixed investments.

Mr. Major Total gross domestic fixed capital formation is estimated to have increased in volume by 12 per cent. between 1987 and 1988. In current prices, the increase was 18 per cent.

Below is the text of Mr Major’s written Parliamentary Answer on Capital (Rate of Returns) on 20th July 1989.

Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will publish in the Official Report the net rate of return on capital employment in manufacturing industry each year since 1959 and his forecast for 1989 together with the return on trading assets.

Mr. Major Official data for the current cost net rate of return on capital employed in manufacturing companies are published in “British Business”, 30 September 1988. A copy is available in the Library. No official forecast is available.

Below is the text of Mr Major’s written Parliamentary Answer on the Trade Deficit on 19th July 1989.

Mr. Macdonald To ask the Chancellor of the Exchequer if he will give his latest estimate of Britain’s end of year trade deficit in 1989 and 1990.

Mr. Major I refer the hon. Member to the reply I gave to the hon. Member for Bootle (Mr. Roberts) on 6 July at columns 217–18.

Below is the text of Mr Major’s written Parliamentary Answer on Manufacturing on 19th July 1989.

Mr. Livsey To ask the Chancellor of the Exchequer what is his latest estimate of the deficit in manufactured trade for 1989–90.

Mr. Major I refer the hon. Member to the reply I gave to the hon. Member for Southport (Mr. Fearn) on 21 June at column 138.

Below is the text of Mr Major’s written Parliamentary Answer on Capital Goods Industries on 18th July 1989.

Mr. Austin Mitchell To ask the Chancellor of the Exchequer whether he will publish in the Official Report the return on capital employed and on trading assets of the capital goods industries less building materials, contracting and construction in 1959, 1968, 1973, 1978 1980 and his estimate for 1988 together with his forecast for 1989 and 1990.

Mr. Major No official statistics exist in the form required. Neither is a forecast made of these numbers. The Bank of England has published data taken from large companies’ accounts which shows the historic cost rate of return for a number of different industrial classifications. The latest data can be found on pages 548–49 of the “Bank of England Quarterly Bulletin” November 1988, volume 28 No. 4. A copy is available in the Library.

Below is the text of Mr Major’s written Parliamentary Answer on Northern Region (GDP) on 18th July 1989.

Mr. Steinberg To ask the Chancellor of the Exchequer what is the gross domestic product per head for the northern region of the United Kingdom; and in which EEC regions the gross domestic product per head is lower than this figure.

Mr. Major Gross domestic product per head at factor cost in the north is provisionally estimated to have been £5,389 in 1987. International comparisons of regional GDP per head by the statistical office of the European Communities are published on page 156 of “Regional Trends 24”; 1989 Edition. This shows the following regions to have had lower GDP per head than the north in 1986 (in descending order):

Region | Country
Wales United Kingdom
Noreste Spain
Oost-Nederland Netherlands
Region wallonne/Waals gewest Belgium
Abruzzi-Molise Italy
Madrid Spain
Northern Ireland United Kingdom
Este Spain
Sardegna Italy
Campania Italy
Sicilia Italy
Sud Italy
Noroeste Spain
Canarias Spain
Ireland Ireland
Centro Spain
Kentriki Ellada Greece
Sur Spain
Voreia Ellada Greece
Portugal Portugal
Anatolika Kai notia nisia Greece