HC Deb 19 May 1981 vol 5 cc54-5W
Mr. Dubs

asked the Chancellor of the Exchequer what has been the effect of the Civil Service industrial dispute on the compilation of value added tax trade statistics; and whether he is satisfied that it will eventually prove possible to achieve complete statistical records for the period of the dispute.

Mr. Peter Rees

Since industrial action began in March it has not been possible to produce computer-based information about the amounts of VAT paid by persons registered in the various trade classifications. I am not yet able to say what effects the dispute will eventually have upon statistical records.

Mr. Dubs

asked the Chancellor of the Exchequer what is his assessment of the time it will take after the end of the Civil Service industrial action at the value added tax headquarters in Southend before normal value added tax enforcement will be possible.

Mr. Peter Rees

The time it will take to resume normal value added tax enforcement will depend on the length of the dispute. At this stage it is not possible to give a reliable estimate.

Mr. Dubs

asked the Chancellor of the Exchequer if he is satisfied that, despite Civil Service industrial action at value added tax headquarters in Southend, total recovery of value added tax will be possible.

Mr. Peter Rees

Yes, apart from the usual cases of insolvency where a trader has insufficient funds to pay his creditors.

Mr. Gordon Wilson

asked the Chancellor of the Exchequer what impact the loss of revenue caused by the Civil Service dispute has had on the public sector borrowing requirement and other monetary indicators such as sterling M3.

Mr. Brittan

The major impact of the loss of revenue caused by the Civil Sevice dispute has been temporarily to increase the central Government borrowing requirement. It is estimated that the central Government borrowing requirement in April was some £1 ¼ to £1 ½ billion higher than it might otherwise have been as a result of the Civil Service dispute, bringing the estimated cumulative effect since the strike began to between £2 and £2½ billion. In the banking month of April—19 March to 15 April—of the 2 per cent. growth in sterling M3, a possible 1¼ per cent. can be attributed to the strike. A large proportion of the increase in M1 in April was also due to the dispute. These effects are temporary and will unwind when the dispute is over and the outstanding revenue is paid into the Exchequer.