HL Deb 04 May 1995 vol 563 cc126-8WA
Earl Russell

asked Her Majesty's Government:

Whether they will supply a breakdown, by heads of revenue, of the shortfall in public revenues during 1994–95 and in particular how far the shortfall in income tax receipts is to be explained in terms of number of taxpayers, how far in terms of income levels, and how far in terms of shortfall in collection.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

The differences between provisional receipts and outlays in 1994–95 and the forecasts made for the 1994 Budget are given in the following table.

£ billion
Provisional
Central government Forecast1 outturn Differences
Inland Revenue2 89.1 87.3 -1.8
of which: income tax3 64.2 63.0 -1.2
corporation tax3 20.1 19.3 -0.8
Customs and Excise2 73.6 72.5 -1.1
of which: VAT4 43.3 42.2 -1.1
Social Security contributions (GB) 41.0 40.7 -0.3
Interest and dividends 7.6 7.8 40.2
Other receipts5 17.6 17.4 -0.2
Total receipts 228.8 225.6 -3.2
Interest payments 21.4 21.4 -0.1
Privatisation proceeds -6.3 -6.4 -0.1
Net departmental outlays6 250.0 249.0 -1.1
Total outlays 265.1 263.9 -1.2
Net own account borrowing 36.4 38.3 +1.9

£ billion
Provisional
Central government Forecast1 outturn Differences
Local authority borrowing requirement -0.4 -0.8 -0.4
Public corporations' borrowing requirement -1.7 -1.9 -0.2
Public sector borrowing requirement 34.3 35.6 + 1.3
1 The forecasts are adjusted as necessary for the consequential effects of the Chancellor's statement on 8 December 1994 following the decision to leave the rate of VAT on domestic fuel and power at 8 per cent.
2 Payments to the Consolidated Fund
3 Net receipts by Inland Revenue
4 Net receipts by Customs and Excise
5 Including some elements of expenditure that are not separately identified
6 Net of certain receipts, and" excluding on-lending to local authorities and public corporations

It is not possible at this stage to provide a detailed analysis of the shortfall in income tax receipts.