HC Deb 27 June 2000 vol 352 cc478-80W
Mr. Robertson

To ask the Chancellor of the Exchequer how much extra tax and national insurance he will collect following the introduction of the All-Employee Share Scheme from employee and employer participants in the scheme. [126960]

Mr. Timms

The new all-employee share plan is a tax and NICs relieving measure designed to encourage more employees to hold shares in the companies for which they work and to reward their long-term commitment. The new plan will eventually cost the Exchequer around £400 million a year.

Mr. Robertson

To ask the Chancellor of the Exchequer what representations he has received from(a) employers and (b) employees about the All-Employee Share Scheme; what was the nature of those representations; and if he will make a statement. [126935]

Mr. Timms

Since December 1998, when the consultation process on employee share ownership began, the Inland Revenue has received in the region of 1,000 representations. While these have mostly been from employers and their advisers, many individual employees have also made representations.

The responses have covered all aspects of the existing Inland Revenue approved share schemes and the proposals for the new all-employee share plan and Enterprise Management Incentives. They have been overwhelmingly in favour of the new proposals. We have reflected these representations in the legislation.

Mr. Robertson

To ask the Chancellor of the Exchequer if he will review the annual upper limit of £1,500 for contributions to the All-Employee Share Scheme; and if he will make a statement. [126934]

Mr. Timms

The limit of £1,500 on the amount which employees may contribute annually from their salary under the new plan was arrived at after extensive consultation. We have no plans to review the limit at the present time.

Mr. Robertson

To ask the Chancellor of the Exchequer what discussions he has had with employers about the cost and administration which will be involved in running the new All-Employee Share Scheme alongside existing schemes; and if he will make a statement. [126968]

Mr. Timms

Consideration of employers' costs in setting up and running the new plan has formed a major part of the consultation underlying the plan, and the views of employers have been sought at every stage. Improvements designed to reduce these costs have been made to the legislation currently going through Parliament. The Regulatory Impact Assessment published on 21 March sets out a detailed cost/benefit analysis.

Mr. Robertson

To ask the Chancellor of the Exchequer what discussions with employers he had before deciding on an upper limit of £1,500 per year for employees purchasing shares under the new All-Employee Share Scheme; and if he will make a statement. [126961]

Mr. Timms

The limit of £1,500 on the amount which employees may contribute annually from their salary under the new plan was arrived at after extensive consultation involving their employers, their advisers and other interested parties. Over 1,000 written responses have been received during the consultation period, mainly from employers and their advisers. The process started in December 1998 and ended earlier this year, following the publication of the draft legislation in November 1999. An advisory group drawn from large and small companies, their advisers, the TUC and the academic world worked with officials on the detailed legislation, and a 60-strong group of large and small employers was consulted throughout.

Mr. Robertson

To ask the Chancellor of the Exchequer what estimate he has made of the number of employees who contribute more than £1,500 per year to purchase their employing company shares through a share scheme; and if he will make a statement. [126936]

Mr. Timms

A full picture of the distribution of amounts used by employees to purchase shares in the companies they work for is not available.