§ Mr. Lawsonasked the Chancellor of the Exchequer if he will publish in the Official Report the correspondence between the Financial Secretary and the hon. Member for Blaby, dated 4 January, 17 January and 5 February, on the subject of tax changes and Inland Revenue staff numbers.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 14 February 1979; Vol. 962, c. 569], gave the following answer:
638WYes. Following is the correspondence.
4 January 1979
Nigel Lawson Esq MP
Dear Nigel
I am sorry that I was not able to answer before the House rose for Christmas your Question on how many additional persons have been employed by the Inland Revenue to deal with new taxes and tax changes introduced by the Government in each financial year since 1974–75.
The Inland Revenue estimate is as follows:—
Staff Units Change year on year Cumulative 1974–75 … +370 +370 1975–76 … +1,520 +1,890 1976–77 … +1,620 +3,510 1977–78 … -70 +3,440 1978–79* … +810 +4,250 1979–80† … −360 +3,890 * Provisional. † Forecast. The figures given are in terms of staff units needed but exclude overtime used for implementing changes (eg recoding work when personal allowances change). When changes have produced staff savings, these have been netted off.
The figures for 1979–80 reflect changes already on the statute book—(for example, the new system of giving relief on life assurance premiums which comes into effect next April). They exclude however the considerable savings which will flow from our proposals to abolish most child tax allowances from next year; if these are taken into account, the 1979–80 figure is forecast to be -2,360, and the cumulative total +1,890.
Yours ever,
Bob
ROBERT SHELDON
17 January 1979
Dear Bob
Thank you for your letter of 4 January concerning Inland Revenue staff units.
In the context of your final paragraph, I should be grateful if you could let me know the increase in the total numbers of tax payers that would arise, ceteris paribus, from the abolition of child tax allowances.
Yours ever,
Nigel
The Rt. Hon. Robert Sheldon, M.P.
Financial Secretary,
The Treasury,
Treasury Chambers,
Parliament Street,
London, SWI.
5 February 1979
Nigel Lawson Esq MP
You wrote to me again on 17 January about the increase in the number of taxpayers arising from abolition of child tax allowances.
If child tax allowances had been abolished for 1978–79, the number of taxpayers would have been increased by about 100,000.
ROBERT SHELDON