§ Mr. Michael Lathamasked the Chancellor of the Exchequer whether, pursuant to the reply by the Minister of State, Civil Service Department to the hon. Member for Melton on 23rd June, he will give an assurance that, because the staff of the Inland Revenue has grown to meet an increase in the overall number of taxpayers, it will be reduced proportionately as people cease to be taxpayers because the tax thresholds have been raised; and whether he will quantify the intended reduction over the next six months.
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§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th July 1976; Vol. 915], gave the following information:
It is not possible to quantify the saving which will arise from the raising of the personal tax allowances over the next six months, but as I told the hon. Member for Macclesfield (Mr. Winterton) on 11th May—[Vol. 911, c. 127.]—the Budget proposals as a whole, together with the administrative changes mentioned by my right hon. Friend, should save about 1,300 staff in the Inland Revenue this year, compared with the numbers which would otherwise have been necessary.
§ Mr. Michael Lathamasked the Chancellor of the Exchequer (1) whether, pursuant to the reply by the Minister of State, the Civil Service Department, to the hon. Member for Melton on 23rd June, he will specify what is the new work arising from the Finance and Finance (No. 2) Acts 1975 which has required an increase in the staff of the Inland Revenue over the period 1st January to 1st April 1976;
(2) whether he will break down in numerical terms under each heading which he listed in his answer to the hon. Member for Melton on 23rd June the reasons why the staff of the Inland Revenue grew by 1,198 between 1st January 1976 and 1st April 1976.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 14th July, 1976; Vol. 915], gave the following information:
1. For the general run of work in Inland Revenue offices, staff needs are determined on a yearly basis, and it is not possible to analyse in detail variations which occur over a shorter period. Thus the reasons given for the increase in Inland Revenue staff between 1st January and 1st April 1976 are those which are relevant for the whole of the year 1975–76. Of the increase in staff of just over 6,000 over this period, about 8 per cent. was due to the build up of work under the Social Security Act 1973; about 17 per cent. to new work arising from the Finance and Finance (No. 2) Acts 1975; about 20 per cent. to improved recruitment; and the balance to growth in the number of taxpayers and other changes in existing workloads.
264W2. The main items of work arising in the same period under the two Finance Acts of 1975 were:
Sections 19–52
Capital Transfer Tax.
Section 32
Interim benefit for unmarried or separated parents with children.
Sections 35–37
Benefits in kind.
Section 38
Workers supplied by agencies.
Sections 44–48
Payment of tax pending appeal interest on unpaid tax;
Repayment supplement in respect of delayed repayments.
Sections 68–71
Subcontractors in the Construction Industry.