HC Deb 25 January 1988 vol 126 cc83-5W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer what is his estimate of the increase in revenue and the decrease in expenditure as a result of the reduction in unemployment in 1987–88; how much of this would accrue to the national insurance fund via an increase in national insurance contributions and a reduction in social security payments; and if he will provide comparable figures for 1988–89 on the basis of the present level of employment and unemployment.

Mr. Major

[holding answer 22 January 1988]: It is not possible to estimate the extra revenue accruing to the Exchequer as a result of the fall in unemployment. Details of the estimated effect of a fall in unemployment on overall benefit expenditure are given in table 3.15.18 of the 1987 public expenditure White Paper, and table 6.15.20 of the 1988 public expenditure White Paper (published 20 January). The estimated increase in contribution income

£ million
(a) (b) (c) (d) (e) (f) + (g)
Cigarettes Tobacco Beer Wine Spirits1 Petrol & Diesel1
1979–80 2,717.9 243.4 1,406.4 523.3 1,422.9 3,047.4
1980–81 3,094.6 276.8 1,738.4 606.9 1,502.5 3,928.0
1981–82 3,672.1 368.5 2,136.3 765.4 1,602.1 5,155.3
1982–83 3,717.6 396.3 2,366.0 7860 1,355.3 5,840.3

are given in table 3.6 of Financial Statistics, published by the Central Statistical Office. Those issued since 31 October are as listed.

to the national insurance fund resulting from the increase in employment in 1987–88 is £300 million. The estimated reduction in unemployment benefit expenditure in 1987–88 resulting from the decrease in the numbers entitled to unemployment benefit is £250 million. The overall effect of a fall in unemployment and increase in employment on the national insurance fund in 1988–89 is described in the report of the Government Actuary on the Social Security (Contributions, Re-rating) Order (No.2) 1987, which will be published shortly.

Mr. Fearn

To ask the Chancellor of the Exchequer if he will list the total tax receipts from the sale of the following items:(a) cigarettes, (b) tobacco, (c) beer, (d) wine, (e) whisky, (f) petrol and (g) diesel for each year for which figures are available between 1979 and 1987.

Mr. Lilley

[holding answer 22 January 1988]: The figures, in financial years, show the information at the lowest level of detail for which total tax receipts (i.e. both VAT and excise duty) can be provided.

(a) (b) (c) (d) (e) (f) + (g)
Cigarettes Tobacco Beer Wine Spirits1 Petrol & Diesel1
1983–84 4,103.3 401.5 2,608.8 982.8 2,131.6 6,293.8
1984–85 4,477.9 414.7 2,835.0 997.7 1,702.4 6,820.5
1985–86 4,851.5 412.4 3,057.7 1,066.4 2,003.4 7,272.8
1986–87 5,193.6 424.7 3,124.2 1,098.5 1,989.2 8,262.2
1 VAT statistics do not distinguish whisky from "spirits" or petrol from "motor fuels in general".