Category: Chief Secretary (1987-1989)

Below is the text of Mr Major’s written Parliamentary Answer on Small Businesses on 20th July 1987.

Mr. David Shaw Asked the Chancellor of the Exchequer if he will make a statement on the achievements of his Department in helping small businesses over the last three years; 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 policy is designed to maintain a vigorous economy in which business and enterprise can flourish. Specific measures helpful to small businesses have been introduced in each of the last three Budgets. These include:

1985 Budget
self employed benefit from continuing reduction in Class 2 NIC and tax relief on half Class 4 NIC;
NIC restructuring;
extension of business expansion scheme (BES);
reform of capital gains retirement relief, extension of indexation, relief for long term holdings;
VAT threshold increase in line with inflation, extension of bad debt relief;
abolition of development land tax;
unincorporated businesses share benefit of real increase in income tax thresholds.

1986 Budget
small companies’ corporation tax (CT) rate reduced to 29 per cent.;
unincorporated businesses benefit from basic rate cut to 29 per cent. and indexation of tax thresholds;
BES extended and targeting improved;
Inheritance tax exemption for lifetime gifts;
VAT registration and deregistration thresholds increased broadly in line with inflation;
Enterprise allowance scheme expanded;
Employee share schemes: improved access for unquoted family companies, employee controlled companies, worker co-operatives;
Loan guarantee scheme extended and premium halved.

1987 Budget
small companies’ CT rate reduced to 27 per cent.;
unincorporated businesses benefit from income tax basic rate cut to 27 per cent. and indexation of the tax threshold; package of measures to lighten VAT burden on small businesses including: cash and annual accounting for businesses with turnover up to £250,000; registration threshold increased to £21,300 and period in which 73 businesses obliged to register extended to 30 days, simpler schemes to he more widely available for small and medium sized retailers;
standstill in fuel duties and most vehicle excise duty rates; BES changes to reduce effect of investment bunching in last quarter of tax year;
small companies’ capital gains charge reduced to 27 per cent. with advance corporation tax offset against liability on gains;
ceiling for capital gains retirement relief increased to £125,000;
Inheritance tax (IHT) business relief increased from 30 per cent. to 51) per cent. for minority holdings over 25 per cent. in unquoted companies; IHT threshold increased; new simplified occupational pension schemes will help small employers set up own schemes.
The success of the Government’s policies to improve the climate for small businesses is indicated by the rate of net business startups which, on the basis of VAT registration, averaged around 500 per week between 1980 and 1985.

Below is the text of Mr Major’s written Parliamentary Answer on Inflation on 17th July 1987.

Mr. Galbraith Asked the Chancellor of the Exchequer what assumptions his Department has made about the rate of inflation for 1988, 1989 and 1990.

Mr. Major The Financial Statement and Budget Report published in March 1987 contains assumptions for inflation as measured by the GDP deflator for the financial years 1988-89 to 1990-91, together with forecasts for growth in the GDP deflator in 1987-88 and for the retail prices index up to the second quarter of 1988. These figures are presented as follows:

Inflation (percentage change on a year earlier)

Year | GDP deflator Forecast
1987-88 | 4.5
1988-89 | 4.0
1989-90 | 3.5
1990-91 | 3.0

RPI
1987 4th quarter | 4.0
1988 2nd quarter | 4.0

Below is the text of Mr Major’s written Parliamentary Answer on Departmental Staff on 16th July 1987.

Mr. John Townend Asked the Chancellor of the Exchequer what was the number of staff-in-post in central Government Departments at 1 April.

Mr. Major At 1 April 1987 there were 597,814 staff in post in central Government Departments. Of these, 507,460 were non-industrials and 90,354 were industrials.

Below is the text of Mr Major’s written Parliamentary Answer on Industrial Production on 9th July 1987.

Miss Emma Nicholson Asked the Chancellor of the Exchequer what is his latest estimate of the level of industrial production.

Mr. Major I refer my hon. Friend to the reply my hon. Friend the Economic Secretary gave earlier today to my hon. Friend the Member for Esher (Mr. Taylor).

Below is the text of Mr Major’s written Parliamentary Answer on Overseas Assets on 9th July 1987.

Mr. Quentin Davies Asked the Chancellor of the Exchequer if he will make a statement on the present level of net United Kingdom assets overseas.

Mr. Hannam Asked the Chancellor of the Exchequer if he will make a statement on the present level of net United Kingdom assets overseas.

Mr. Major Net United Kingdom overseas assets are estimated to have increased from about £80 billion at the end of 1985 to about £110 billion at the end of 1986. This is equivalent to 28 per cent. of GDP, the highest recorded level since the war.

Below is the text of Mr Major’s written Parliamentary Answer on the Public Sector Borrowing Requirement on 9th July 1987.

Mr. Yeo Asked the Chancellor of the Exchequer what is his latest forecast for the public sector borrowing requirement for 1987-88.

Mr. Major The figure is £3.9 billion, or 1 per cent. of GDP – as published in the “Financial Statement and Budget Report” for 1987-88.

Below is the text of Mr Major’s written Parliamentary Answer on Unemployment Costs on 9th July 1987.

Mr. Nigel Griffiths Asked the Chancellor of the Exchequer whether he will provide an estimate of the cost of unemployment in Scotland.

Mr. Major I regret that regional figures for benefit expenditure on the unemployed are not available.

Below is the text of Mr Major’s written Parliamentary Answer on Oil Prices on 9th July 1987.

Mr. Salmond Asked the Chancellor of the Exchequer what is his Department’s current assessment of the impact of lower oil prices on the United Kingdom’s economy.

Mr. Major Individuals and companies are benefiting from lower fuel costs and the manufacturing sector is already responding to the competitiveness gains which have occurred.

Below is the text of Mr Major’s written Parliamentary Answer on Public Expenditure on 9th July 1987.

Mr. Ralph Howell Asked the Chancellor of the Exchequer what is his latest estimate of general Government expenditure as a proportion of gross domestic product.

Mr. Couchman Asked the Chancellor of the Exchequer what is his latest estimate of general Government expenditure as a proportion of gross domestic product.

Mr. Major General government expenditure represented just under 43 per cent. of gross domestic product in 1986-87.

Mr. Rowe Asked the Chancellor of the Exchequer what is his latest estimate of central Government expenditure as a proportion of gross domestic product.

Mr. Major The normal measure for assessing trends in public spending is general government expenditure as a percentage of GDP. The latest estimate for that in 1986-87 is 43 per cent. The figure for central Government expenditure is 32 per cent.

Below is the text of Mr Major’s written Parliamentary Answer on Manufacturing Industry on 9th July 1987.

Mr. Bruce Asked the Chancellor of the Exchequer what is the current projected deficit in manufactured goods compared with the estimates at the time of the last Budget.

Mr. Major The performance so far in 1987 has been better than implied at Budget time; in the four months to April the trade deficit in manufactures fell by £1.1 billion compared to the last four months of 1986. A new forecast will be published in the usual way at the time of the autumn statement.