§ Mr. Mike O'BrienTo ask the Chancellor of the Exchequer what were the costs of collection of(a) income tax, (b) corporation tax and (c) capital gains tax in each year since 1974; what were the reasons for changes in costs between years; and in which areas of Government increased administrative costs were attributable to the complexity of legislation. [11135]
§ Mr. JackThe following table shows the costs of collection in current prices and the costs expressed as a percentage of the yield for 1982–83 onwards. Figures for earlier years are not readily available.
£ million Income tax cost Corporation tax cost Capital gains tax cost 1982–83 650 60 15 1983–84 676 63 15 1984–85 730 60 14 1985–86 805 62 15 1986–87 883 71 18 1987–88 932 85 25 1988–89 973 91 27 1989–90 1,068 101 32 1990–91 1,203 125 39 1991–92 1,248 152 43 1992–93 1,366 149 38 1993–94 1,427 156 42 1994–95 1,353 149 33 Changes in costs reflect changes in prices, in the overall burden of work and in efficiency.
It would not be practical to attempt to list every area of government where increased administration costs were attributable to the complexity of legislation, but civil service running costs are falling in real terms and are planned to fall by 15 per cent. between 1993–94 and 1998–99.