Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 16 January 1997.
Mr Peter Pike
, Burnley
12:00,
16 January 1997
To ask the Chancellor of the exchequer how many people he estimates will pay inheritance tax in the current financial year. [9518]
Michael Jack
, Fylde
It is provisionally estimated that inheritance tax will be paid on around 18,000 transfers on death and in lifetime in the current financial year.
Mr Peter Pike
, Burnley
As a Lancashire Member, I congratulate the Minister—another Lancashire Member—on his elevation to the Privy Council.
Does not the Government's obsession with the abolition of inheritance tax underline, in many people's minds, their obsession with helping a minority of wealthy people rather than giving a fair deal to the Majority? That has been the trend ever since the Government were elected in 1979.
Michael Jack
, Fylde
In a spirit of camaraderie, I thank the hon. Gentleman for his kind good wishes on my appointment to the Privy Council. I listened to what he had to say, but it contrasts starkly with what the hon. Member for North Warwickshire (Mr. O'Brien) said last year in the Standing Committee considering the Finance Bill. At that time, he confirmed your party's wish for more millionaires to be created, and seemed to confirm some interest in the creation of wealth; but you show your usual nasty attitude to that wealth passing down—
Miss Betty Boothroyd
Speaker of the House of Commons
Order. Privy Councillors do not behave in that way.
Michael Jack
, Fylde
I apologise, Madam Speaker—the heat of battle must have got to me.
The hon. Gentleman suggested that his party takes a rather unfortunate attitude to wealth being passed on. Inheritance tax statistics show that only 2 per cent. of estates now pay it. Through raising the threshold and our long-term desire to remove the tax, we want to end the worry caused to those with modest estates as they pass their wealth down the generations. We want more wealth to be passed on for productive use by future generations.
Mr Patrick Nicholls
, Teignbridge
Does my hon. Friend agree that 2 per cent. of estates being subject to inheritance tax is 2 per cent. too many? The trouble with inheritance tax is not that it was designed to raise revenue for items that must be financed by the state, but that it was devised as a way of punishing people for having money in the first place. It is a thoroughly un-Conservative tax and it should go at the earliest opportunity.
Michael Jack
, Fylde
My hon. Friend puts his finger on an important point. It is worth considering the history of estate taxes, or estate duty as it was once called. Such taxes were relevant when the tax base was not as it is today. Today, we have taxes on income, earning and consumption; the time has come for us to make progress on our long-term objective of removing inheritance tax, as and when we can afford it.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
The Privy Council goes back to the earliest days of the Monarchy, when it comprised those appointed by the King or Queen to advise on matters of state.
As the constitution developed into today's constitutional monarchy, under which The Sovereign acts on the advice of Ministers, so the Privy Council adapted. Its day to day business is transacted by those of his Majesty's's Ministers who are Privy Counsellors, that is all Cabinet Ministers and a number of junior Ministers. Membership of the Privy Council brings with it the right to be called "Right Honourable".
The Privy Council still meets regularly, on average once a month, but, as with the Cabinet, most of its business is transacted in discussion and correspondence between its Ministerial members and the Government Departments that advise them. The Privy Council Office (which is itself a Government Department) provides a secretariat for these discussions, as the Cabinet Office does in relation to the business of Cabinet and Cabinet Committees. Councils are held by The King and are attended by Ministers and the Clerk of the Council. At each meeting the Council will obtain His Majesty's formal approval to a number of Orders which have already been discussed and approved by Ministers, much as Acts of Parliament become law through the giving of the Royal Assent after having been debated in Parliament.
Meetings are reported in the Court Circular, along with the names of Ministers attending (usually four in number). The Orders made at each Council are in the public domain, and each bears the date and place of the Council at which it was made. There is therefore nothing at all "secret" about Privy Council meetings. The myth that the Privy Council is a secretive body springs from the wording of the Privy Counsellor's Oath , which, in its current form, dates back to Tudor times. It requires those taking it to "keep secret all matters...treated of in Council". The Oath (or solemn affirmation for those who cannot take an Oath) is still administered, and is still binding; but it is only in very special circumstances nowadays that matters will come to a Privy Counsellor on "Privy Council terms". These will mostly concern matters of the national interest where it is important for senior members of Opposition parties to have access to Government information.
The term "majority" is used in two ways in Parliament. Firstly a Government cannot operate effectively unless it can command a majority in the House of Commons - a majority means winning more than 50% of the votes in a division. Should a Government fail to hold the confidence of the House, it has to hold a General Election. Secondly the term can also be used in an election, where it refers to the margin which the candidate with the most votes has over the candidate coming second. To win a seat a candidate need only have a majority of 1.
Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.
In a normal session there are up to ten standing committees on bills. Each has a chair and from 16 to 50 members. Standing committee members on bills are appointed afresh for each new bill by the Committee of Selection which is required to take account of the composition of the House of Commons (ie. party proportions) as well as the qualification of members to be nominated. The committees are chaired by a member of the Chairmen's Panel (whose members are appointed by the Speaker). In standing committees the Chairman has much the same function as the Speaker in the House of Commons. Like the Speaker, a chairman votes only in the event of a tie, and then usually in accordance with precedent. The committees consider each bill clause by clause and may make amendments. There are no standing committees in the House of Lords.
The Speaker is an MP who has been elected to act as Chairman during debates in the House of Commons. He or she is responsible for ensuring that the rules laid down by the House for the carrying out of its business are observed. It is the Speaker who calls MPs to speak, and maintains order in the House. He or she acts as the House's representative in its relations with outside bodies and the other elements of Parliament such as the Lords and the Monarch. The Speaker is also responsible for protecting the interests of minorities in the House. He or she must ensure that the holders of an opinion, however unpopular, are allowed to put across their view without undue obstruction. It is also the Speaker who reprimands, on behalf of the House, an MP brought to the Bar of the House. In the case of disobedience the Speaker can 'name' an MP which results in their suspension from the House for a period. The Speaker must be impartial in all matters. He or she is elected by MPs in the House of Commons but then ceases to be involved in party politics. All sides in the House rely on the Speaker's disinterest. Even after retirement a former Speaker will not take part in political issues. Taking on the office means losing close contact with old colleagues and keeping apart from all groups and interests, even avoiding using the House of Commons dining rooms or bars. The Speaker continues as a Member of Parliament dealing with constituent's letters and problems. By tradition other candidates from the major parties do not contest the Speaker's seat at a General Election. The Speakership dates back to 1377 when Sir Thomas Hungerford was appointed to the role. The title Speaker comes from the fact that the Speaker was the official spokesman of the House of Commons to the Monarch. In the early years of the office, several Speakers suffered violent deaths when they presented unwelcome news to the King. Further information can be obtained from factsheet M2 on the UK Parliament website.
