§ Mr. RedmondTo ask the Chancellor of the Exchequer how works of art donated to the nation in lieu of Inland Revenue debts are accounted for in the budget for arts and libraries and the public expenditure planning system.
§ Mr. Norman LamontWhen a work of art is accepted in lieu of tax, the Inland Revenue is reimbursed for the tax forgone. Both the Office of Arts and Libraries and the Department of the Environment have vote provision to make such payments: in 1989–90 this amounted to £1 million for each of them. This provision forms part of their respective public expenditure programmes.
Also, as announced on 26 July 1985, this provision may be supplemented by access to the reserve for up to £10 million in any one year for large and important offers. When such offers are accepted, parliamentary approval for the extra provision is obtained by a supplementary estimate. This access to the reserve does not add to the planned total of public expenditure. No compensating reductions are sought from the Office of Arts and Libraries or the Department of the Environment when such access is granted.