Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 16 January 1997.
Mrs Alice Mahon
, Halifax
12:00,
16 January 1997
To ask the Chancellor of the exchequer what additional sums have been paid as a result of changes in VAT since 1992. [9524]
Mr Philip Oppenheim
, Amber Valley
The net revenue effect of various changes to VAT coverage since 1992 is estimated to be £870 million in the current financial year.
Mrs Alice Mahon
, Halifax
Will the Minister confirm that, because of the Government's imposition of VAT on domestic fuel, many pensioners are forced to pay the highest premium to heat their homes? Has he calculated the cost of that in human terms and to the national health service, as many pensioners, especially in my Constituency, are forced to cut back on heating in cold weather?
Mr Philip Oppenheim
, Amber Valley
The hon. Lady makes a point, but this could be a good moment gently to remind her and Opposition Members that, for many years, Labour's energy policy was to burn expensive and relatively dirty coal. Labour denigrated our policy of allowing cleaner, cheaper gas, which has resulted in falling energy costs and cleaner air. I am surprised that Labour Members are so shameless that they can come to the House, after pursuing that policy, and declare that they are worried about the cost of energy for the less well-off.
David Lidington
, Aylesbury
Surely the impact of extending VAT to domestic fuel has been outweighed by the price cuts arising from the Government's policy of privatisation. Is it not also the case that the parties in the House that voted against privatisation were therefore voting in favour of dearer energy prices for pensioners and others, and that those who support a windfall tax would also bring about dearer fuel prices for pensioners and others?
Mr Philip Oppenheim
, Amber Valley
My hon. Friend is exactly right. Even including VAT, power prices are lower than they were. Gas prices alone have fallen by 19 per cent. in real terms. The less well-off have also been protected by compensating rises in benefits.
Alistair Darling
Shadow Chief Secretary to the Treasury
The House will have noted that the Chancellor has not answered any questions on VAT today. How can we believe a Chancellor who says that he never contemplated extending VAT to food when he specifically mentioned it in his 1993 Budget? How can we trust a Chancellor who says that somebody promised not to extend VAT in the 1992 election when not only was that somebody the Prime Minister, but we have film of the Chancellor of the exchequer sitting next to the Prime Minister when he gave that commitment?
Mr Philip Oppenheim
, Amber Valley
How can the House and voters trust a Shadow Chief Secretary who, in response to a Scottish nationalist Amendment proposing a reduction in VAT on fuel from 8 per cent. to 5 per cent, said that it was a
cynical ploy from a desperate party"—[Official Report, 23 January 1995; Vol. 253, c. 49.]
yet only three months ago came to the House and proposed just such a cynical ploy—from another desperate party?
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.
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 general election, each Constituency chooses an MP to represent them. MPs have a responsibility to represnt the views of the Constituency in the House of Commons. There are 650 Constituencies, and thus 650 MPs. A citizen of a Constituency is known as a Constituent
The Opposition are the political parties in the House of Commons other than the largest or Government party. They are called the Opposition because they sit on the benches opposite the Government in the House of Commons Chamber. The largest of the Opposition parties is known as Her Majesty's Opposition. The role of the Official Opposition is to question and scrutinise the work of Government. The Opposition often votes against the Government. In a sense the Official Opposition is the "Government in waiting".
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
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Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.
In the end only a handful of amendments will be incorporated into any bill.
The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.
The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.
The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.
