§ Mr. HansonTo ask the Chancellor of the Exchequer what estimate he has made of the effects of the moneys held by the national lottery distribution fund on the public sector borrowing requirement. [40085]
§ Mr. WaldegraveSo far, the direct effect of the moneys held by the national lottery distribution fund has been to reduce the PSBR by £1.1 billion. This reflects timing lags between receipt of the money into the NLDF and its spending on good causes.
The effect of the lottery on the PSBR will be unwound in due course as the NLDF runs down its surplus by increasing its grants to good causes.
§ Mr. BayleyTo ask the Chancellor of the Exchequer if he will estimate the impact on the public sector borrowing requirement of the national lottery, distinguishing between revenue raised through taxation, lottery money not yet distributed and lottery money remaining unclaimed. [40778]
§ Mr. Waldegrave[holding answer 31 October 1995]: The table gives the relevant figures. The direct impact of the national lottery, before allowing for the displacement of other tax receipts, was to reduce the PSBR by £0.4 billion in 1994–95. The summer economic forecast projected that the direct effect of the lottery would be to reduce the PSBR by £1.4 billion in 1995–96. This assumed lottery spending of £5 billion.
Lottery prize money that remains unclaimed after 180 days is paid into the national lottery distribution fund. At the end of September, unclaimed lottery prize money received by the NLDF was £15 million.
The effect of the lottery on the PSBR will be unwound in due course as the NLDF runs down its surplus by increasing its grants to the good causes.
727W
The direct effects of the lottery on the PSBR £million Outturn 1994–95 Forecast 1995–96 Receipts Betting duty on Lottery 104 600 Payments into the NLDF 295 1,350 Total General Government Receipts 399 1,950 Payments Payments from the NLDF 6 550 Total General Government Expenditure 6 550 PSBR -393 -1,400 To date the total receipts of the NLDF, including interest, are £1.2 billion. This includes unclaimed prize money of £15 million. Deductions from the NLDF, for payment of both expenses and draw down to distributing bodies, so far totals £71.7 million. To date 2,329 projects have been approved, with a total value of £671 million. Most of the schemes approved are for capital spending, with a resultant lag between commitment and cash flow from the NLDF.
§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the effect on the public sector borrowing requirement in the first six months of 1995–96 of the cash flows associated with the receipts and disbursements of national lottery funds; and if he will make a statement. [40825]
§ Mr. Waldegrave[holding answer 1 November 1995]: The table gives the relevant figures. The direct impact of the lottery, before allowing for the displacement of other tax receipts, was to reduce the PSBR by £1 billion in the first six months of 1995–96.
The effect of the lottery on the PSBR will be unwound in due course, as the NLDF runs down its surplus by increasing grants to the good causes.
The direct effects of the lottery on the PSBR in the first six months of 1995–96 £ million Receipts Lottery duty 307 Payments into the distribution fund 747 Total general Government receipts 1,054 Payments Payments from the distribution fund 52 Total General Government Expenditure 52 PSBR -1,002 To date, the total receipts of the NLDF, including interest, are £1.2 billion. This includes unclaimed prize money of £15 million. Deductions from the NLDF, for payment of both expenses and draw-down to distributing bodies, so far totals £71.7 million. To date 2329 projects have been approved, with a total value of £671 million. Most of the schemes approved are for capital spending, with a resultant lag between commitment and cash flow from the NLDF.