HM Treasury

In 2021/22, the Foreign, Commonwealth and Development Office (FCDO) was allocated an Overseas Development Assistance (ODA) research and development budget of £251m. This is equivalent to 43% of the total ODA research and development budget this year.

Research councils were allocated £139m of ODA research and development expenditure in 2021/22 by the Department of Business, Energy and Industrial Strategy (BEIS). This is equivalent to 24% of the total ODA research and development budget this year.

The NHS is not responsible for the allocation of any ODA research and development expenditure.

At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use rebated diesel and biofuels from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies. As part of the changes, duty will also be extended to biodiesel used for heating.

The Government recognised that these reforms would be a significant change for some businesses and ran a consultation to gather information on the expected impact and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use rebated diesel and biofuels beyond April 2022. During the consultation period, the Government engaged directly with a wide variety of organisations from all parts of the UK, including sectors which consume rebated diesel and biofuels, and fuel suppliers.

Following the consultation, the Chancellor granted entitlements to use rebated diesel and biofuels after April 2022 for a limited number of users, including for use in non-commercial heating and power generation. In the case of non-commercial heating, the Government felt there was a risk that removing entitlement would significantly increase the heating bills of households that use diesel, especially those in areas off the gas grid where there is no alternative.

The Government did not believe that the cases made by sectors that will not retain their red diesel entitlement outweighed the need to ensure fairness between the different uses of diesel fuels and the Government’s environmental objectives.

To support the development of alternatives that affected businesses can switch to, the Government is at least doubling the funding provided for energy innovation through the new £1 billion Net Zero Innovation Portfolio. From that portfolio, the Government announced the £40 million Red Diesel Replacement Competition, which will provide grant funding for projects that develop and demonstrate lower carbon, lower cost alternatives to red diesel for the construction, and mining and quarrying sectors.

HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuels, which is available at:

www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022

At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use rebated diesel and biofuels from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies. As part of the changes, duty will also be extended to biodiesel used for heating.

The Government recognised that these reforms would be a significant change for some businesses and ran a consultation to gather information on the expected impact and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use rebated diesel and biofuels beyond April 2022. During the consultation period, the Government engaged directly with a wide variety of organisations from all parts of the UK, including sectors which consume rebated diesel and biofuels, and fuel suppliers.

Following the consultation, the Chancellor granted entitlements to use rebated diesel and biofuels after April 2022 for a limited number of users, including for use in non-commercial heating and power generation. In the case of non-commercial heating, the Government felt there was a risk that removing entitlement would significantly increase the heating bills of households that use diesel, especially those in areas off the gas grid where there is no alternative.

The Government did not believe that the cases made by sectors that will not retain their red diesel entitlement outweighed the need to ensure fairness between the different uses of diesel fuels and the Government’s environmental objectives.

To support the development of alternatives that affected businesses can switch to, the Government is at least doubling the funding provided for energy innovation through the new £1 billion Net Zero Innovation Portfolio. From that portfolio, the Government announced the £40 million Red Diesel Replacement Competition, which will provide grant funding for projects that develop and demonstrate lower carbon, lower cost alternatives to red diesel for the construction, and mining and quarrying sectors.

HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuels, which is available at:

www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022

At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use rebated diesel and biofuels from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies. As part of the changes, duty will also be extended to biodiesel used for heating.

The Government recognised that these reforms would be a significant change for some businesses and ran a consultation to gather information on the expected impact and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use rebated diesel and biofuels beyond April 2022. During the consultation period, the Government engaged directly with a wide variety of organisations from all parts of the UK, including sectors which consume rebated diesel and biofuels, and fuel suppliers.

Following the consultation, the Chancellor granted entitlements to use rebated diesel and biofuels after April 2022 for a limited number of users, including for use in non-commercial heating and power generation. In the case of non-commercial heating, the Government felt there was a risk that removing entitlement would significantly increase the heating bills of households that use diesel, especially those in areas off the gas grid where there is no alternative.

The Government did not believe that the cases made by sectors that will not retain their red diesel entitlement outweighed the need to ensure fairness between the different uses of diesel fuels and the Government’s environmental objectives.

To support the development of alternatives that affected businesses can switch to, the Government is at least doubling the funding provided for energy innovation through the new £1 billion Net Zero Innovation Portfolio. From that portfolio, the Government announced the £40 million Red Diesel Replacement Competition, which will provide grant funding for projects that develop and demonstrate lower carbon, lower cost alternatives to red diesel for the construction, and mining and quarrying sectors.

HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuels, which is available at:

www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022

The Soft Drinks Industry Levy (SDIL) is not formally linked to any individual spending programme.

However, the government will continue to invest in supporting public health and tackling obesity, including the Department for Education’s Holiday Activities and Food programme, which was extended by £200 million per year at the 2021 Spending Review, and the £320 million per year PE and Sport Premium.

The money allocated to these causes exceeds the revenue raised by the SDIL.

To better support public health and provide a more level playing field, we are moving to a system where all drinks between 8.5% and 22% ABV will pay the same rate of duty, linked to the alcohol content of the product. This means that the stronger the drink, the more duty will be paid, and vice versa.

Subsequently, higher strength fortified wines, port and sherry will increase in price, while still wines below 11.5% ABV will become cheaper. However, the changes will also mean that the duty on spirit-based liqueurs will reduce, and will for the first time pay the same duty as wines.

The Government is continuing to engage with industry on these reforms. A consultation was launched in October and industry members are encouraged to respond to the alcohol review consultation before the deadline of 30 January 2022.

HM Treasury has contracted with Clifford Chance LLP in the last five years as follows:

The department has not contracted with the other named suppliers in that period.

Details of ministerial meetings are published quarterly and can be found on GOV.UK

The Government is continuing to monitor the economic impact of covid-19 on the brewing sector and is taking steps to support pubs and brewers in their recovery.

As announced at Autumn Budget, the duty rates on alcohol including beer will be frozen for another year. This is expected to save beer drinkers £900 million over the next five years, and has resulted in beer duty rates being at their lowest level in real terms since the 1990s.

In addition, as part of our alcohol duty review, the Government has announced a number of reforms which will further support brewers. This includes our proposal to widen the reduced rate for lower strength beers from 2.8% alcohol by volume (ABV) to extend to beers below 3.5% ABV, and to move the higher rate for beers above 7.5% ABV to start at 8.5% ABV.

The Government has also announced it will reduce the duty on draught beer by 5% from 2023. This will cut the duty on a pint of beer served in a pub by 3p.

The Government is continuing to monitor the economic impact of covid-19 on the brewing sector and is taking steps to support pubs and brewers in their recovery.

As announced at Autumn Budget, the duty rates on alcohol including beer will be frozen for another year. This is expected to save beer drinkers £900 million over the next five years, and has resulted in beer duty rates being at their lowest level in real terms since the 1990s.

In addition, as part of our alcohol duty review, the Government has announced a number of reforms which will further support brewers. This includes our proposal to widen the reduced rate for lower strength beers from 2.8% alcohol by volume (ABV) to extend to beers below 3.5% ABV, and to move the higher rate for beers above 7.5% ABV to start at 8.5% ABV.

The Government has also announced it will reduce the duty on draught beer by 5% from 2023. This will cut the duty on a pint of beer served in a pub by 3p.

Extending the current reliefs further would come at a cost to the Exchequer, and this must be viewed in the context of around £50 billion worth of requests which have been received since the EU referendum.

The Shared Outcomes Fund is a UK government fund testing innovative ways of working across the public sector with an emphasis on thorough evaluation. Where funding is given for a Shared Outcomes Fund project in a devolved area, the Barnett formula will apply in the normal way.

HM Treasury’s Block Grant Transparency publication sets out the breakdown of changes in the devolved administrations’ block grants, including all Barnett consequentials related to the Shared Outcomes Fund, since the 2015 Spending Review. This is available on the gov.uk website here:

https://www.gov.uk/government/publications/block-grant-transparency-december-2021

The government has provided around £400 billion of direct support for the economy through the pandemic to date, which has helped to safeguard livelihoods and public services in every region and nation of the UK.

The government recognises the impact Omicron is having on businesses and individuals, which is why we announced £1 billion of targeted financial grant support for the hospitality, leisure and cultural sectors to protect jobs and businesses.

The package includes £30 million which will be made available through the Culture Recovery Fund (CRF), to support theatres, museums and other vital cultural institutions through the temporary disruption this winter, helping in turn to support the livelihoods of those working in this sector.

In addition to the CRF, government funding via Arts Council England will also provide an immediate £1.5 million to support freelancers affected by the pandemic, alongside a further £1.35 million contribution from the theatre sector. This will provide grants of £650,000 each directly to the Theatre Artists Fund, Help Musicians, and £200,000 to a-n the Artists Information Company, a charity for visual artists which will distribute cash to freelancers over the coming weeks.

The government is also waiving late filing and late payment penalties for Income Tax Self-Assessment (ITSA) taxpayers to support cashflow and ease administrative burdens. Self-Assessment taxpayers with up to £30,000 of tax debt can spread their tax payments online, through HMRC’s “time to pay” service, and all others can call HMRC to arrange a repayment plan. For those on low income whose earnings continue to be affected by Covid-19 restrictions, work coaches will continue to be able to suspend the Universal Credit Minimum Income Floor on an individual basis for up to six months.

The remedy proposed in the Public Service Pensions and Judicial Offices Bill is designed to address the discrimination identified by the McCloud and Sargeant judgments. For the main unfunded public service pension schemes, in effect, remedy offers members in scope a choice between legacy or reformed scheme benefits for the remedy period, which runs from 1 April 2015 to 31 March 2022. Members in scope of remedy are those with service on or before 31 March 2012 and on or after 1 April 2015.

The cost of remedy is the cost of additional pension benefits accrued due to remedy. Those benefits will typically be paid out across the retirement of eligible members. The estimated £17 billion cost of remedy will, therefore, be paid out over many decades as the pensions of those in scope come into payment.

VAT is a broad-based tax on consumption. The standard rate of 20 per cent applies to most goods and services, including PCR tests. Medical testing, where it is administered by a registered health professional or where it is supervised by a relevant health professional and supplied as part of a single testing service, is exempt from VAT. The Government also continues to offer free Covid-19 testing for those with Covid-19 symptoms.

The Government recognises that the cost of PCR tests can be high, which is why we are working with the travel industry and private testing providers to see how we can further reduce the costs for the British public, whilst ensuring that travel remains as safe as possible. From 7 January 2022, eligible fully vaccinated passengers will no longer need to take a pre-departure test or self-isolate on arrival in England.

The Government announced the Health and Social Care Levy on 7 September 2021 and passed the legislation on 20 October 2021.

The Levy will allow the Government to implement necessary adult social care reform, tackle the elective backlog in the NHS as it recovers from Coronavirus, develop our pandemic response and preparedness, and ensure the NHS has the resources it needs throughout this Parliament.

The Government is committed to responsible management of the public finances and it is important that this spending is fully funded, particularly in the context of record borrowing and debt to fund the economic response to COVID-19.

A levy charged on the National Insurance Contributions base is the fairest way to raise the funds needed to support health and social care. It ensures the lowest earners are protected from increases as National Insurance has a threshold to protect the lowest paid. The highest earning 15 per cent will pay over half the revenue raised from the Levy and 6.1 million people earning less than the Primary Threshold (£9,880 in the year 2022-23), will not pay the Levy. In addition, using National Insurance as the basis ensures businesses will also pay the Levy. Businesses benefit from having a healthy workforce, so it is only fair that they contribute.

The vast majority of marketed tax avoidance schemes, including those involving umbrella company arrangements, do not work and can lead to large tax bills building up for those that use them. The promotion or use of these tax avoidance schemes is not in and of itself a criminal offence. However, there may be a range of fraud offences which might be committed by those who use or promote specific schemes or advise on their use.

Whilst HMRC does not routinely record whether criminal investigations into tax fraud feature the use of umbrella companies, and therefore are currently unable to provide a precise number, HMRC has confirmed that it has criminally investigated umbrella businesses in the past and has a number of current active criminal investigations involving umbrella arrangements.

The Government and HMRC are committed to tackling those who market and sell tax avoidance schemes. HMRC will continue to use its anti-avoidance regimes to challenge the entities and individuals who promote these schemes.

Prosecutions are only one type of intervention available where HMRC identify concerns.

There is currently no overarching definition of ‘tax advice’ or ‘tax adviser’ in legislation and it is legal for tax advice to be provided by a wide range of professionals and individuals, including accountants, legal professionals, payroll companies, bookkeepers, and software developers. Therefore, HMRC is unable to provide any data in response to this request. The Government intends to hold a consultation in 2022 to explore options to improve the wider regulatory framework that supports standards in tax advice. This consultation will also test a potential legislative definition of tax advice.

HMRC remains committed to maintaining agent standards and tackling those who enable and facilitate tax evasion. They currently have nearly 150 enablers, including those who have provided tax advice as part of their involvement in the fraud, under criminal investigation. Over 60 enablers have been prosecuted in the past 4 financial years.

As a result of the Omicron variant, hospitality and leisure businesses saw significant numbers of cancellations and reduced footfall throughout their peak trading period around Christmas. The aim of the Omicron Hospitality and Leisure Grant is to support businesses offering in-person services, where social mixing is the primary motivation for their customers.

However, the Government also recognises that other businesses, including in the personal care industry, may also have been impacted by the Omicron variant. That is why we have provided an extra £102 million of discretionary funding through the Additional Restrictions Grant, on top of the £250 million that local authorities have left from previous allocations.

Guidance for the Omicron Hospitality and Leisure Grants and revised guidance for the Additional Restrictions Grant scheme were published on 30 December 2021, and can be found here: https://www.gov.uk/government/publications/local-restrictions-support-grants-lrsg-and-additional-restrictions-grant-arg-guidance-for-local-authorities

The total spend on the Trader Support Service since its commencement to December 2021 is £213 million.

The Government has made several assessments of the overall impact of the introduction of the Health and Social Care Levy, which were published alongside the announcement. These include the distributional analysis of the impact of the combined tax and spending announcements, a technical annex in the Government’s plan for health and social care, and a Tax Information and Impact Note.

The Office for Budget Responsibility set out their assessment of the economic effects of the Levy, including the impact on labour supply and wages, in their latest Economic and Fiscal Outlook. This can be found here: https://obr.uk/efo/economic-and-fiscal-outlook-october-2021/

The Government has made several assessments of the overall impact of the introduction of the Health and Social Care Levy, which were published alongside the announcement. These include the distributional analysis of the impact of the combined tax and spending announcements, a technical annex in the Government’s plan for health and social care, and a Tax Information and Impact Note.

The Office for Budget Responsibility set out their assessment of the economic effects of the Levy, including the impact on labour supply and wages, in their latest Economic and Fiscal Outlook. This can be found here: https://obr.uk/efo/economic-and-fiscal-outlook-october-2021/

The government is taking targeted action worth more than £4.2 billion a year over the next 5 years to help families with the cost of living. This includes the £500 million Household Support Fund (October 2021 to March 2022) to help vulnerable households with costs for essentials over the winter. The fund is ringfenced so that at least 50 per cent of it will be spent on households with children and should primarily be used to support households in the most need with food, energy, and water bills.

The government continues to maintain a zero-rate of VAT on many food and drink products, including fresh fruit, vegetables, cereals, meat, bread, milk, tea and coffee.

The government monitors consumer food prices using the ONS Consumer Price Index published statistics.

The government is taking targeted action worth more than £4.2 billion a year over the next 5 years to help families with the cost of living. This includes the £500 million Household Support Fund (October 2021 to March 2022) to help vulnerable households with costs for essentials over the winter. The fund is ringfenced so that at least 50 per cent of it will be spent on households with children and should primarily be used to support households in the most need with food, energy, and water bills.

The government continues to maintain a zero-rate of VAT on many food and drink products, including fresh fruit, vegetables, cereals, meat, bread, milk, tea and coffee.

The government monitors consumer food prices using the ONS Consumer Price Index published statistics.

Recognising that fuel is a major cost for households and businesses, the government announced at the Autumn Budget 2021 that fuel duty rates would remain frozen on a UK-wide basis in 2022-23. Twelve consecutive years of the fuel duty freeze will save the average UK car driver around £15 in fuel duty per tank of fuel, compared to what would have been paid under the pre-2010 escalator.

The Government does not set pump prices or wider oil prices.

Tonnage tax is an alternative method of calculating Corporation Tax profits by reference to the net tonnage of the ship operated. It is a reserved tax and applies UK wide.

The Consolidated Fund receives the proceeds of tonnage tax and other tax revenues, such as those collected by Her Majesty’s Revenue and Customs. Tonnage tax is not a hypothecated tax.

When funding is allocated to UK Government departments from the Consolidated Fund the Barnett formula is applied. The Barnett formula provides the devolved administrations with a population share of changes in the UK’s available resources consistent with the principles set out in the Statement of Funding Policy.

The government has always been clear that the £20 per week increase to Universal Credit (UC) was a temporary measure to support households whose incomes and earnings were affected by the economic shock of COVID-19.

There have been significant positive developments in the public health and economic situation since the uplift was first announced. Now that the economy has reopened, the government is focusing on supporting people to move into and progress in work.

To continue to boost employment, wages and living standards, the government is continuing or enhancing the most successful Plan for Jobs schemes and introducing a new package of measures – taking the total DWP spend on labour market support to more than £6 billion over the next three years. This includes investing over £900m each year on work coaches, who will provide effective support to help job seekers on Universal Credit move into work and, for the first time ever, help people progress once in work, and funding for the Kickstart scheme, which has so far supported over 112,000 young people into Kickstart jobs.

The government has also taken decisive action to make work pay by cutting the Universal Credit taper rate from 63p to 55p, and increasing Universal Credit work allowances by £500 a year. This is effectively a tax cut for the lowest paid in society worth around £2.2bn in 2022-23 and strengthens incentives to move into and progress in work. 1.9m households will keep, on average, around an extra £1000 on an annual basis.

As set out in the Statement of Funding Policy, the Barnett formula applies to changes in UK Government department budgets.

The Welsh Government's existing funding already includes Barnett consequentials on changes in overall funding provided to the Department for Levelling Up, Housing and Communities, which is responsible for cladding remediation in England. Most recently, Spending Review 2021 provided the Welsh Government with the biggest annual block grants, in real terms, of any spending review settlement since devolution in 1998.

It is for the Welsh Government to allocate funding as it sees fit across its devolved responsibilities including tackling unsafe cladding in residential properties in Wales.

The Government has made a comprehensive package of support available, worth billions, to a wide range of businesses that have been affected by the COVID-19 pandemic. This includes extensions to the reduced rate of VAT for tourism and hospitality, the furlough scheme, extensions to the COVID-19 loan schemes, grant support, a business rates holiday for all retail, hospitality, and leisure business properties, mortgage holidays, enhanced Time to Pay for taxes, and VAT deferrals.

The Government can neither confirm nor deny whether HMRC has been the target of any cyber-attacks.

HMRC is responsible for the collection of around £700 billion in tax annually and undertakes a range of actions to monitor and maintain the security of their systems and services from cyber-attacks. To disclose the number is likely to attract additional questions which may include specific threats or incidents identified and dealt with, aiding criminals to determine weaknesses in HMRC’s defences or the methods used to identify and respond to such threats.

To provide the information requested would reveal the extent to which HMRC had been subject to such attacks, revealing where cyber intrusion had been successful.

The National Cyber Security Centre advice continues to be that Government departments should withhold detailed and specific information which may provide insight into the likelihood of success of specific techniques. In some cases, the successful application of such insight may still pose a security risk with the potential to prejudice the prevention of crime and/or national security. A successful attack could lead to the loss of confidentiality, integrity, and availability of Government information.

HMRC publish details about security breaches reported to the Information Commissioner in their annual reports: https://www.gov.uk/government/collections/hmrcs-annual-report-and-accounts

The free trade agreement with the EU is the first the EU has ever reached based on zero tariffs and zero quotas, supporting families and businesses in every part of the UK.

Labour market data since January 2020 has been affected significantly by the impact of the Covid-19 pandemic and does not provide an indication of the effect of leaving the EU on unemployment or average earnings.

According to the latest Office for National Statistics nominal average weekly earnings stood at £586 in October 21. Unemployment stood at 1.4 million in the 3m to October 2021.

The free trade agreement with the EU is the first the EU has ever reached based on zero tariffs and zero quotas, supporting families and businesses in every part of the UK.

Labour market data since January 2020 has been affected significantly by the impact of the Covid-19 pandemic and does not provide an indication of the effect of leaving the EU on unemployment or average earnings.

According to the latest Office for National Statistics nominal average weekly earnings stood at £586 in October 21. Unemployment stood at 1.4 million in the 3m to October 2021.

Government ministers, including the Chancellor, as well as officials, meet regularly with business leaders and representative organisations from the hospitality sector and other sectors impacted by Covid-19.

On 21 December, the Chancellor announced a package of support for businesses impacted by the Omicron variant. This included cash grants of up to £6,000 per premises for the hospitality, leisure and accommodation sectors; a further £102m of discretionary funding for local authorities to deliver to businesses most in need; and the reintroduction of the Statutory Sick Pay Rebate scheme for small- and medium-sized employers.

Since 1990 the UK has reduced our greenhouse gas emissions by 44%, while growing our economy by over 75%.

The Net Zero Strategy sets out our long-term plan to end the UK’s domestic contribution to man-made climate change by 2050. However, the government recognises that sustainable economic growth goes further than tackling climate change.

Our response to the Dasgupta Review on the Economics of Biodiversity recognises that nature sustains our economies, livelihoods and well-being, and commits to a nature positive future in which we leave the environment in a better condition than we found it. The world leading Environment Act 2021 supports this ambition.

The State of the Estate series of reports published by Cabinet Office provides information on HM Treasury’s occupied floor area on an annual basis. The reports from 2010-11 to 2013-14 can be found here: https://www.gov.uk/government/collections/state-of-the-estate. Subsequent reports from 2014-15 to 2020-21 can be found by using links in the following style: https://www.gov.uk/government/publications/state-of-the-estate-2014-to-2015.

The government is committed to the approach to infrastructure that was set out in the National Infrastructure Strategy (NIS) in November 2020. This addresses the long-term issues that have held back investment in and delivery of UK infrastructure, and ensures a coherent cross-sectoral approach to decision-making.

As committed to in the NIS, last year the government reviewed the National Infrastructure Commission’s (NIC’s) role and responsibilities, and the NIC’s fiscal remit. As a result of those reviews, at Spending Review 2021 the government updated the NIC’s objectives to reflect the government’s climate commitments and increased the NIC’s fiscal remit. These changes will inform the NIC’s Second National Infrastructure Assessment, to be published in 2023, which launched recently with the publication of a baseline report and will set out the NIC’s expert independent assessment of the UK’s economic infrastructure needs. ICE’s policy statement was one of the sources that informed the reviews, and ongoing engagement with industry stakeholders and representative organisations remains central to the government’s infrastructure strategy.

The government is committed to the approach to infrastructure that was set out in the National Infrastructure Strategy (NIS) in November 2020. This addresses the long-term issues that have held back investment in and delivery of UK infrastructure, and ensures a coherent cross-sectoral approach to decision-making.

As committed to in the NIS, last year the government reviewed the National Infrastructure Commission’s (NIC’s) role and responsibilities, and the NIC’s fiscal remit. As a result of those reviews, at Spending Review 2021 the government updated the NIC’s objectives to reflect the government’s climate commitments and increased the NIC’s fiscal remit. These changes will inform the NIC’s Second National Infrastructure Assessment, to be published in 2023, which launched recently with the publication of a baseline report and will set out the NIC’s expert independent assessment of the UK’s economic infrastructure needs. ICE’s policy statement was one of the sources that informed the reviews, and ongoing engagement with industry stakeholders and representative organisations remains central to the government’s infrastructure strategy.

The UK has supported significant action on debt through the G20-Paris Club Debt Service Suspension Initiative (DSSI). Preliminary estimates suggest the DSSI has suspended over $12.7 billion in debt service repayments due by the poorest countries in the world. In April 2021, the G20 and Paris Club endorsed a final extension of the DSSI to the end of 2021.

The DSSI was designed as a short-term initiative to tackle the immediate financing needs of eligible countries. To deliver a longer-term, more sustainable approach to dealing with debt vulnerabilities the UK, along with the G20, also agreed a new Common Framework for Debt Treatments beyond the DSSI, designed to provide more efficient, equitable and effective debt treatments. The UK is fully committed to implementing the Common Framework in coordination with our international partners. This will support those countries who request a debt treatment in returning to a more fiscally sustainable path and support their development goals, including responding to climate change.

The Bank of England’s Financial Policy Committee (FPC) noted in its December 2021 Financial Stability Report that direct risks to the stability of the UK financial system from cryptoassets are currently limited. However, it also noted at the current rapid pace of growth, and as these assets become more interconnected with the wider financial system, cryptoassets will present a number of financial stability risks.

The Chancellor laid the Financial Stability report in Parliament on the 14^th December.

The Financial Conduct Authority (FCA) published consumer research in June 2021, which offered insight into the cryptoassets market in the UK. The FCA found that 4.4% of UK adults currently hold cryptocurrency, or approximately 2.3 million consumers. The FCA also found that the median value of holdings of crypto owners was £300, and 47% of crypto owners (who chose to declare their holdings) had £260 or less in crypto.

According to the December 2021 Financial Stability Report, no major UK banks have reported having direct exposures to cryptoassets as yet, some UK and global banks are starting to offer a variety of services, such as cryptoasset derivatives trading, and custody services.

The UK authorities continue to monitor developments in this area very closely and have already taken a series of actions to support innovation while mitigating risks to stability and market integrity. These include launching a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020; consulting on proposals to ensure cryptoasset promotions are fair, clear and not misleading; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The Government will issue responses to the consultations shortly.

The Bank of England’s Financial Policy Committee (FPC) noted in its December 2021 Financial Stability Report that direct risks to the stability of the UK financial system from cryptoassets are currently limited. However, it also noted at the current rapid pace of growth, and as these assets become more interconnected with the wider financial system, cryptoassets will present a number of financial stability risks.

The Chancellor laid the Financial Stability report in Parliament on the 14^th December.

The Financial Conduct Authority (FCA) published consumer research in June 2021, which offered insight into the cryptoassets market in the UK. The FCA found that 4.4% of UK adults currently hold cryptocurrency, or approximately 2.3 million consumers. The FCA also found that the median value of holdings of crypto owners was £300, and 47% of crypto owners (who chose to declare their holdings) had £260 or less in crypto.

According to the December 2021 Financial Stability Report, no major UK banks have reported having direct exposures to cryptoassets as yet, some UK and global banks are starting to offer a variety of services, such as cryptoasset derivatives trading, and custody services.

The UK authorities continue to monitor developments in this area very closely and have already taken a series of actions to support innovation while mitigating risks to stability and market integrity. These include launching a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020; consulting on proposals to ensure cryptoasset promotions are fair, clear and not misleading; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The Government will issue responses to the consultations shortly.

Any business concerned about repayments should get in touch with their lender who will be able to provide support and talk them through their options.

In order to give businesses who have borrowed under the Bounce Back Loan Scheme further support and flexibility in making their repayments, the Chancellor announced “Pay as You Grow” (PAYG) options in September 2020. In addition to the six month full repayment holiday, PAYG gives businesses the option to extend their Bounce Back Loan repayments over ten years, reducing their average monthly repayments on the loan by almost half. Businesses also have the option to move to interest-only payments for periods of up to six months (an option which they can use up to three times). If borrowers want to take advantage of these options, they should notify their lender.

The Money and Pensions Service (MaPS) monitors financial difficulty in the UK through the Debt Need Survey, with data on levels of over-indebtedness at a local authority level last published in 2018. MaPS will publish the results of the 2021 Debt Need Survey early this year, which will include a regional breakdown of their new Need for Debt Advice measure.

Since the start of the pandemic, the Government has a strong track record of responding quickly, flexibly, and comprehensively in supporting jobs, businesses, individuals, and families when needed.

The effectiveness of our £400 billion package of interventions since the start of the pandemic, and the strength of the recovery that we have seen from previous waves means the economy is in a different place now.

Employee numbers are above February 2020 levels in every part of the country and have grown consistently through this year.

So, it is right that our economic response in the face of Omicron adapts too and that our support is better targeted at the businesses that need it the most, providing better value for taxpayers and helping the economy to bounce back more quickly.

However, we recognise the impact Omicron and Government guidance is having on businesses and individuals, which is why on 21 December 2021 we announced £1 billion of new grant support for the hospitality, leisure, and cultural sectors, and reintroduced the Statutory Sick Pay Rebate Scheme. This is on top of the existing package of support, in place through to Spring 2022, which includes the Recovery Loan Scheme, business rates relief, VAT reduction, and the ongoing commercial rent moratorium.