Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact that the proposal to make HMRC a secondary preferential creditor in insolvencies may have on business rescue support in the UK from April 2020.
Answered by Lord Young of Cookham
This reform is designed to ensure that when a business becomes insolvent, more of the taxes paid in good faith by that business’s employees and customers will go to fund public services as intended, rather than being distributed to other creditors such as financial institutions.
This measure does not include a cap on the age of tax debts which will be eligible for secondary preferential status, nor an exemption for existing lending. Either proposal would introduce potential distortions into the lending market which the Government does not consider to be either fair or proportionate.
The Government does not expect this reform to have a significant impact on access to finance, the cost of borrowing, business rescue support in the UK or the UK’s ranking in the World Bank’s annual “Doing Business” report.
Consistent with the Government’s impact assessment, the independent Office for Budget Responsibility (OBR) did not make any adjustments to their economic forecast in response to this measure.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask Her Majesty's Government, in the light of their current review of the global persecution of Christians, whether they will consider commissioning similar reviews about other religions or belief groups.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
We have no plans to commission independent reviews on other groups at this time. The persecution or discrimination against all faiths or beliefs remains of profound concern to us and we remain committed to standing up for Freedom of Religion or Belief all over the world. We will continue to work with faith leaders and civil society organisations to tackle discrimination and persecution and to promote the value and benefit - to individuals, communities and wider society - of religious freedom and mutual respect.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what economic analysis they used to support the decision in the 2018 Budget to make HMRC a secondary preferential creditor in insolvency.
Answered by Lord Bates
The government does not expect this reform to significantly impact access to finance or the cost of borrowing.
The independent OBR did not make any adjustments to their economic forecast in regard to this measure.
At Budget 2018, the Government published the following assessment:
Type of Creditor | Explanation and Examples | Current Average Percentage of Debt Recovered in Insolvency | New Average Percentage of Debt Recovered in Insolvency |
| Lenders to whom the business granted security, primarily financial institutions. When a fixed charge is provided, the company loses the right to sell or trade the item. These assets tend to be fundamental to the business; for example, machinery, property or vehicles. | 36% | 36% (unchanged) |
| Fees for overseeing the process. | As charged | As charged |
| Claims by the Redundancy Payment Service (RPS) and Financial Services Compensation Scheme (FSCS) on behalf of employees and customers (to statutory limits); and from 2020, HMRC will be a secondary preferential creditor (below the RPS and FSCS) for Value-Added Tax, Employee National Insurance contributions, Pay-As-You-Earn Income Tax and Construction Industry Scheme Deductions. | 83% | 83% (unchanged) for existing preferential creditors; 14% for HMRC |
| Lenders for whom the company is not granted security, primarily financial institutions. This tends t be the case in relation to assets that are not fixed; for example, stocks, raw materials, fixtures and fittings or cash. | 36% | Less than 36% |
| All remaining creditors, including HMRC debts levied directly on businesses; and debts owed to suppliers, contractors, landlords and customers. | 4% | Less than 4% |
| Only get paid if all the above creditors are paid in full. | N/A | N/A |
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact on lending to UK businesses of the announcement in the 2018 Budget of making HMRC a secondary preferential creditor in insolvency.
Answered by Lord Bates
The government does not expect this reform to significantly impact access to finance or the cost of borrowing.
The independent OBR did not make any adjustments to their economic forecast in regard to this measure.
At Budget 2018, the Government published the following assessment:
Type of Creditor | Explanation and Examples | Current Average Percentage of Debt Recovered in Insolvency | New Average Percentage of Debt Recovered in Insolvency |
| Lenders to whom the business granted security, primarily financial institutions. When a fixed charge is provided, the company loses the right to sell or trade the item. These assets tend to be fundamental to the business; for example, machinery, property or vehicles. | 36% | 36% (unchanged) |
| Fees for overseeing the process. | As charged | As charged |
| Claims by the Redundancy Payment Service (RPS) and Financial Services Compensation Scheme (FSCS) on behalf of employees and customers (to statutory limits); and from 2020, HMRC will be a secondary preferential creditor (below the RPS and FSCS) for Value-Added Tax, Employee National Insurance contributions, Pay-As-You-Earn Income Tax and Construction Industry Scheme Deductions. | 83% | 83% (unchanged) for existing preferential creditors; 14% for HMRC |
| Lenders for whom the company is not granted security, primarily financial institutions. This tends t be the case in relation to assets that are not fixed; for example, stocks, raw materials, fixtures and fittings or cash. | 36% | Less than 36% |
| All remaining creditors, including HMRC debts levied directly on businesses; and debts owed to suppliers, contractors, landlords and customers. | 4% | Less than 4% |
| Only get paid if all the above creditors are paid in full. | N/A | N/A |
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the announcement in the 2018 Budget of making HMRC a secondary preferential creditor in insolvency on (1) secured creditors, (2) floating charge holders, and (3) unsecured creditors such as pension funds and small businesses.
Answered by Lord Bates
The government does not expect this reform to significantly impact access to finance or the cost of borrowing.
The independent OBR did not make any adjustments to their economic forecast in regard to this measure.
At Budget 2018, the Government published the following assessment:
Type of Creditor | Explanation and Examples | Current Average Percentage of Debt Recovered in Insolvency | New Average Percentage of Debt Recovered in Insolvency |
| Lenders to whom the business granted security, primarily financial institutions. When a fixed charge is provided, the company loses the right to sell or trade the item. These assets tend to be fundamental to the business; for example, machinery, property or vehicles. | 36% | 36% (unchanged) |
| Fees for overseeing the process. | As charged | As charged |
| Claims by the Redundancy Payment Service (RPS) and Financial Services Compensation Scheme (FSCS) on behalf of employees and customers (to statutory limits); and from 2020, HMRC will be a secondary preferential creditor (below the RPS and FSCS) for Value-Added Tax, Employee National Insurance contributions, Pay-As-You-Earn Income Tax and Construction Industry Scheme Deductions. | 83% | 83% (unchanged) for existing preferential creditors; 14% for HMRC |
| Lenders for whom the company is not granted security, primarily financial institutions. This tends t be the case in relation to assets that are not fixed; for example, stocks, raw materials, fixtures and fittings or cash. | 36% | Less than 36% |
| All remaining creditors, including HMRC debts levied directly on businesses; and debts owed to suppliers, contractors, landlords and customers. | 4% | Less than 4% |
| Only get paid if all the above creditors are paid in full. | N/A | N/A |
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask Her Majesty's Government what representations they have made, and intend to make, to the government of Pakistan about (1) the arrest of Gulalai Ismail, and (2) ensuring that human rights defenders in Pakistan are able to carry out their work free from persecution by the state.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
We are concerned by restrictions on freedom of expression, including the detention of human rights activists, in Pakistan. The freedom to hold and express views without censorship, intimidation or unnecessary restriction is a cornerstone of democracy. The arrest of Gulalai Ismail is a further worrying development against the backdrop of restrictions on fundamental rights in Pakistan.
We regularly raise at a senior level our concerns about the human rights situation with the Government of Pakistan, including on the freedom of expression. I discussed human rights in Pakistan with the Minister for Human Rights, Dr Shireen Mazari, in September 2018. The British Government continues to urge Pakistan to honour in full its human rights obligations.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask Her Majesty's Government what assessment they have made of the All-Party Parliamentary Humanist Group's report, Any Lawful Impediment; and whether they intend to legally recognise humanist marriage in England and Wales.
Answered by Lord Keen of Elie
The Government welcomes the engagement of the All-Party Parliamentary Humanist group and we are giving careful consideration to the findings of the group’s inquiry.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask Her Majesty's Government whether the Children's Funeral Fund for England will cover the full cost when parents choose to bury their child in an adult burial space with extended grave rights, rather than a child-sized burial space.
Answered by Lord Keen of Elie
The Government is committed to ensuring that all families who lose a child are given the support they need. That is why we have announced the establishment of a Children’s Funeral Fund for England, with the intention that no bereaved family will have to pay for the essential costs of burying or cremating their child. The detailed policy is under development and will be announced in due course.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask Her Majesty's Government whether the Children's Funeral Fund for England will cover the cost of any memorial, religious, or church service before the cremation or burial taking place.
Answered by Lord Keen of Elie
The Government is committed to ensuring that all families who lose a child are given the support they need. That is why we have announced the establishment of a Children’s Funeral Fund for England, with the intention that no bereaved family will have to pay for the essential costs of burying or cremating their child. The detailed policy is under development and will be announced in due course.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the Ministry of Justice:
To ask Her Majesty's Government whether the Children's Funeral Fund for England will cover costs for burial and cremation fees in any cemetery or crematorium chosen by bereaved parents, including church, private or woodland-based funerals; and if not, whether the parents' choice will be restricted by virtue of cost.
Answered by Lord Keen of Elie
The Government is committed to ensuring that all families who lose a child are given the support they need. That is why we have announced the establishment of a Children’s Funeral Fund for England, with the intention that no bereaved family will have to pay for the essential costs of burying or cremating their child. The detailed policy is under development and will be announced in due course.