§ Mr. WebbTo ask the Chancellor of the Exchequer if he will list the principal activities of his Department and its agencies which provide business for(a) Crown post offices and (b) other post offices; if he will assess whether the level of business generated in each case is likely to increase or decrease over the next five years; and which new areas of business for post offices are likely to be developed by his Department and its agencies over the same period. [99578]
§ Dawn PrimaroloThe agencies of the Chancellor which provide business for Crown and sub-post offices are National Savings, Inland Revenue and Royal Mint.
National Savings raises deposits from the retail sector through a range of savings and investment products for personal savers retailing 10 of its 11 personal savings products through the full network of post offices.
On current projections National Savings transaction levels through post offices are forecast to reduce by some 8 per cent. over the next five years. This trend is seen as an inevitable consequence of competition from other financial services providers and personal choice as
254W
Table 1: Revenue evaded and revenue lost through cross-Channel smuggling £million 1998 (revised) 1999 Product type Revenue evaded Revenue lost Revenue evaded Revenue lost Beer 200 150 215 165 Wine 65 50 45 35 Spirits 40 30 20 15 Alcohol 305 230 285 215 Hand Rolling tobacco 685 685 720 720 Cigarettes and other tobacco products 250 250 340 340 Tobacco 935 935 1,055 1,055 Total 1,245 1,165 1,340 1,270 customers opt to deal through other channels such as post, telephone or electronic commerce. Enhancements over the next five years are likely to be direct replacements for existing products and as such unlikely to stimulate an increase in overall traffic levels through post offices.
The Inland Revenue has, for some years, given certain taxpayers the option to pay their taxes at any Post Office and expects these volumes to grow over the next five years. The Inland Revenue's National Insurance Contributions Office generates the payment of Quarterly Bills for Class 2 and Class 3 National Insurance Contributions (via giro bank) through all post offices, although contributors are encouraged to pay by direct debit rather than giro payment.
The Inland Revenue is also responsible for administering Working Families Tax Credit and Disabled Person's Tax Credit. Currently most successful applicants receive their tax credit payment by order book which can be cashed at post offices. From April 2000, however, it is expected that the vast majority of employee applicants will be paid through their employers and that there will be a consequent decline in payments at post offices over the next five years.
Royal Mint use all post offices to distribute commemorative UK circulation coinage. This business is expected to remain at the same level over the next five years. Collector coins are also offered through all post offices and Royal Mint are working to increase the volume of business in this regard. No new areas of Royal Mint business for Post Offices are currently considered likely to be developed in the next five years.