Policy Reviews (Hansard, 28 July 1997)

§ Mrs. Liddell

[holding answer 22 July 1997]: Below is a list of policy reviews in progress or scheduled by the Chancellor's departments: Comprehensive review of all Government spending, covering all Departments; To ensure that public spending decisions reflect the Government's long-term priorities and meet the country's long-term needs. The conclusions will inform public spending plans for the rest of this Parliament. The review will take 12 months to complete and will include separate reviews of the Treasury, the revenue departments and the Office for National Statistics. 16W Review of the Bank of England's financial arrangements The Bank's finances will be reviewed to ensure that they are in line with the Bank's new responsibilities and best practice of transparency and accountability. The review is under way and will be completed as soon as possible. Review of the North sea fiscal regime To ensure that an appropriate share of North sea profits are being taxed while continuing to maintain a high level of oil industry interest in the future development of the UK's oil and gas reserves. The review will be completed in time for the spring Budget. Review of capital gains taxation To consult industry widely on the reform of capital gains tax. The findings of the review will be reported in the next Budget. Review of charities taxation To explore the options for a simpler, more coherent system of tax reliefs which is better suited to the way charities work today. Charities will be asked to send their initial views by 1 December 1997 and these will be worked into a consultation paper for publication in spring 1998. Review of leakage and avoidance of direct taxes To identify situations in which significant amounts of tax are, or are at risk of, leaking from the Exchequer and to consider how the Inland Revenue approaches the defeat and deterrence of tax avoidance schemes. An outcome of the rolling review is expected to be proposed for legislation to counter tax leakage in future Finance Bills. The first results will be available in time for a spring budget. Review of alcohol and tobacco duties To reduce losses to Government and industry revenue through alcohol and tobacco fraud, smuggling and cross-border shopping. The review will also look at health and law and order issues. Trade associations and other interested parties will be consulted at an early stage and their views sought on the extent of the problem and practical ways in which it can be tackled. A report is due by the end of 1997. Review of the venture capital trust scheme and enterprise investment scheme To take views from interested parties on the exclusion of arrangements where a substantial part of the return to investors is guaranteed, or which are backed by property, from the venture capital trust scheme and enterprise investment scheme. The Government will publish draft legislation on guarantee arrangements for the Finance Bill following a spring Budget and will lay regulations in Parliament on asset-backed arrangements. It is expected to be ready by autumn 1997. Tax benefit review To explore the scope for the tax and benefit systems to act as an incentive to move off benefit and into work. The project is expected to last for about a year. Review of the landfill tax To review the operation and level of the tax. The project is expected to be complete by January 1998. Report to Parliament on the revenue effect of a reduced rate of VAT for energy-efficient materials and alternative options for targeted relief to help those on low incomes to save energy Section 111 of the Finance Act 1997 commits the Treasury to report by March 1998 on the consequences to the Exchequer of a reduced rate of VAT for energy-saving materials. This review broadens the scope of that study so that it will also look at the best way of giving help where it is needed. It is expected to be complete by the end of October 1997.