Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of freezing the level of the tax-free Personal Allowance on the economy; and if he will make an assessment of the potential merits of increasing this level.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government is committed to keeping taxes low to support people to keep more of what they earn. The Personal Allowance has nearly doubled since 2010 and is over 20% higher in real terms.
As with all aspects of the tax system, the Government keeps the Personal Allowance under review and any decisions on future changes will be made by the Chancellor in the context of the wider public finances.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of exempting state pension from tax; and if he will make an assessment of whether state pension should be classified as income.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Personal Allowance is currently set at a level high enough to ensure that those pensioners whose sole income is the full rate of the new State Pension or basic State Pension do not pay any income tax.
The Government keeps all aspects of the tax system under review and any decision on future changes will be made by the Chancellor in the context of the wider public finances.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to support self-employed individuals who may struggle to file their tax returns on time due to economic difficulties; and whether he has made a recent assessment of the potential merits of reforming the penalty system.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC is committed to helping all taxpayers pay their taxes and urges anyone having difficulty to make contact as soon as possible. Time to Pay arrangements are available for taxpayers who cannot afford to make full payment of their tax when it is due. Also, a Budget Payment Plan service allows Self Assessment taxpayers to make advance payments. HMRC has recently published YouTube videos on GOV.UK to help the self-employed, including one about ‘How to budget for your Self-Assessment tax bill if you’re self-employed’.
In Spring 2021 the government announced a new points-based penalty regime for regular tax return submission obligations, to replace existing penalties for VAT and Self Assessment. The new approach is fairer, with financial penalties arising only when the failure is consistent. For Self Assessment taxpayers, reformed penalties will begin when they join the Making Tax Digital (MTD) service for Self Assessment from April 2026 onwards.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 April 2024 to Question 21426 on Childcare: Taxation, if he will make it his policy to increase the childcare tax free cap in line with inflation.
Answered by Laura Trott - Chief Secretary to the Treasury
The £2,000 Tax-Free Childcare top-up, which can be claimed per year and per child, was set at this level because the Government believes it strikes the right balance between helping parents with their childcare costs, and managing the public finances in a responsible way.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential economic impact of the European Commission’s proposals on EU customs reform of 17 May 2023 on Northern Ireland, in the context of the Windsor Framework.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has been engaging with the European Commission including through the UK/EU annual Trade Specialised Committee on Customs Cooperation and Rules of Origin.
The EU has expressed the need for consultation with the UK to take into account potential implications for Northern Ireland.
The Government published an Explanatory Memorandum in August 2023 setting out relevant considerations in relation to the EU’s proposed reforms. As the reforms develop, we will continue to monitor the progress and to assess any potential impacts on UK businesses.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential economic impact of the European Commission’s customs reform proposals of 17 May 2023 on exporters to the EU.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has been engaging with the European Commission including through the UK/EU annual Trade Specialised Committee on Customs Cooperation and Rules of Origin.
The EU has expressed the need for consultation with the UK to take into account potential implications for Northern Ireland.
The Government published an Explanatory Memorandum in August 2023 setting out relevant considerations in relation to the EU’s proposed reforms. As the reforms develop, we will continue to monitor the progress and to assess any potential impacts on UK businesses.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with the Financial Conduct Authority on the additional costs to consumers of paying (a) vehicle and (b) household insurance in monthly instalments; and if he will make an assessment of the potential impact of such costs on people on lower incomes.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with her relevant EU counterparts on the potential impact of the European Commission’s customs reform proposal of 17 May 2023 on exporters.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government has been engaging with the European Commission including through the UK/EU annual Trade Specialised Committee on Customs Cooperation and Rules of Origin.
The EU has expressed the need for consultation with the UK to take into account potential implications for Northern Ireland.
The Government published an Explanatory Memorandum in August 2023 setting out relevant considerations in relation to the EU’s proposed reforms. As the reforms develop, we will continue to monitor the progress and to assess any potential impacts on UK businesses.
Asked by: Toby Perkins (Labour - Chesterfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the next round of International Climate Finance from April 2026 has already been allocated under future spending plans.
Answered by Laura Trott - Chief Secretary to the Treasury
The next round of International Climate Finance falls outside of this Spending Review period. Decisions on how spending is allocated after 2024-25, including for International Climate Finance, will be made at a future Spending Review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to review the (a) rate of and (b) threshold for Stamp Duty Land Tax in Northern Ireland in the context of trends in average house prices.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The government keeps all tax policy under review and changes are announced at a fiscal event as part of the normal tax policy making process.