Asked by: Lord Strathcarron (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the Bank of England’s financial forecasting record; and what steps, if any, they plan to take to improve the Bank’s forecasting.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Bank of England has statutory responsibilities for monetary policy and financial stability, and operational independence from the Government to carry out those responsibilities. The Government remains fully committed to the Bank’s independence.
The Court of the Bank of England has commissioned the Bank’s Independent Evaluation Office (IEO) to review the Bank’s forecasting, and related processes. It will be led by Dr Ben Bernanke. The review began this summer and is expected to publish its findings in spring 2024.
Asked by: Lord Strathcarron (Conservative - Excepted Hereditary)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will review the 45 pence per mile HMRC mileage rate motoring allowance in the light of current levels of inflation.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government sets the Approved Mileage Allowance Payments (AMAP) rates to minimise administrative burdens. The AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than the AMAP rates. If an employee is paid less than the approved amount, they are allowed to claim Mileage Allowance Relief (MAR) from HMRC. However, if the payment exceeds the relevant AMAP rate, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
As with all taxes and allowances, the Government keeps the AMAP rates under review and any changes are considered by the Chancellor.