Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the number of weeks they can continue to fund the financial support schemes for individuals and businesses that have been put in place as a result of the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. Our economic response is one of the most generous and comprehensive globally.
The Office for Budget Responsibility note that the measures taken should help limit the long-term damage to the economy and public finances – and the costs of inaction would have been higher.
Precise costs will depend on a range of factors including the impact of the crisis on the wider economy and the level of take-up for each scheme. However, it is clear that the impact on the economy and the government's necessary response will lead to an increase in borrowing in the short-term.
The government intends to finance the additional borrowing through its normal debt management operations. HM Treasury, the Debt Management Office and the Bank of England are cooperating closely to support the orderly functioning of the gilt and sterling money markets
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they expect to begin addressing the increase in national debt that has occurred as a result of the COVID-19 pandemic, and what assessment they have made of the measures that will be needed.
Answered by Lord Agnew of Oulton
The work of the last ten years in bringing borrowing and debt back under control has ensured that the public finances are well placed to deal with the challenges posed by COVID-19. However, it is clear that the impact of COVID-19 on the economy and the government's necessary response to it will lead to an increase in borrowing and debt this year.The government has provided a comprehensive policy package to do whatever it takes to support businesses, households and our vital public services through this difficult period. Not taking these steps would result in the temporary effects of COVID-19 permanently damaging our economy, which would weaken the fiscal position over the longer-term; as the independent Office for Budget Responsibility have said, “the costs of inaction would certainly have been higher.”
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of any discrepancies between the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction, published on 15 April, and the guidance available on the HMRC website; and where there are discrepancies, which rules will be followed when processing a claim through the Coronavirus Job Retention Scheme.
Answered by Lord Agnew of Oulton
The Coronavirus Job Retention Scheme was introduced in extraordinary circumstances and at unprecedented pace in order to provide vital support to employers and their employees. The scheme was announced by the Chancellor on 20 March and launched on 20 April. In its first day of operation, applications were received from over 140,000 employers, in respect of over 1,000,000 jobs.
HMRC will act at all times in accordance with the HM Treasury Direction. HMRC’s interpretation of the Direction is set out in their published guidance, and it is HMRC’s view that the published guidance is consistent with the Direction. It is HMRC’s expectation that employers should consider the guidance in the first instance when seeking to understand the operation of the scheme and HMRC’s interpretation of the Direction.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether employees who were made redundant, or stopped working for their employers, after 19 March can be claimed for under the Coronavirus Job Retention Scheme if they are now re-employed.
Answered by Lord Agnew of Oulton
Employees who were made redundant or stopped working for their employers after 19 March can be claimed for under the Coronavirus Job Retention Scheme if their employer agrees to re-employ them and place them on furlough. The employer will still be able to claim a grant to cover 80% of the employee’s regular wages from the date they were placed on furlough, up to a cap of £2,500 a month. This applies if the employees were made redundant or stopped working for their employer after 19 March 2020, as long as the employees were employed by them on 19 March 2020 and on their payroll on or before 19 March 2020. This means an RTI submission to HMRC notifying payment in respect of the employee must have been made on or before 19 March 2020.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether employers can claim through the Coronavirus Job Retention Scheme for employees who (1) were furloughed as of 28 February and (2) were transferred under TUPE between 28 February and 19 March.
Answered by Lord Agnew of Oulton
A new employer is eligible to claim under the Coronavirus Job Retention Scheme (CJRS) in respect of the employees of a previous business transferred after 28 February 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership. Further guidance on the CJRS has been published on GOV.UK.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government (1) what plans they have, if any, to issue guidance on whether employers can direct employees to take holiday during furlough and (2) whether employers and employees can agree to vary holiday pay entitlement during furlough.
Answered by Lord Agnew of Oulton
The Government has published detailed guidance on managing holidays during Covid-19. The Government encourages employers to engage with their workforce before requiring them to take holiday during furlough.
The employer and employee can agree to vary holiday entitlement as part of the furlough agreement, but almost all workers are entitled to 5.6 weeks of statutory paid annual leave each year. The Working Time Regulations require holiday pay to be paid at the employee’s normal rate of pay or, where the rate of pay varies, calculated on the basis of the average pay received by the employee in the previous 52 working weeks.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the weekly total cost of the financial support being provided to individuals and businesses as a result of the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. These steps are necessary to ensure that the country, economy and public finances are stronger in the longer-term.
Precise costs will depend on a range of factors including the impact of the crisis on the wider economy and the level of take up for each scheme.
The Office for Budget Responsibility (OBR) published a coronavirus reference scenario on 14 April which provides insight into the potential fiscal costs under a particular set of economic circumstances and updated their policy costings table on 30 April. In their scenario, the OBR estimate the direct cost of Government decisions to be £103.7 billion in 2020/21. The OBR note that the measures taken should help limit the long-term damage to the economy and public finances, and that the costs of inaction would have been higher.
A full assessment of the economic and fiscal position will be made at the next Budget alongside an updated OBR forecast.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will publish the results of Operation Kingfisher before 31 October; and if so, when.
Answered by Earl of Courtown - Opposition Deputy Chief Whip (Lords)
We are continuing to monitor companies and sectors that may be exposed to short-term difficulties as a result of EU exit. This monitoring is market sensitive and confidential.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the UK’s budget rebate would apply if the UK's notifiction to withdraw from the EU under Article 50 was withdrawn.
Answered by Lord Bates
We want to leave with a deal on March 29. We reached a fair financial settlement with the EU, honouring commitments we made during our period of membership, as set out in the draft Withdrawal Agreement in November 2018. As an EU Member State, we will continue to have rights and obligations until exit.
Asked by: Lord Jones of Cheltenham (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of ending freedom of movement after Brexit on those UK citizens who own property in France; and whether there will be any limit to the number of days each year those residents can spend in such property before incurring tax liabilities.
Answered by Lord Bates
UK nationals are bound and protected by France's domestic law when purchasing and selling property in France, in the same way that the law of UK protects property rights in the UK. The UK’s exit from the EU will not change this.
All UK nationals resident in the EU before the end of the implementation period, 31 December 2020, will fall under the Citizens’ Rights part of the Withdrawal Agreement. This will protect their right to reside in France continuing to live their lives broadly as now.
As at present, liability to taxation in France will depend on the nature of the income and French domestic tax law. The double taxation agreement between the UK and France protects UK citizens’ taxation rights, and will continue to apply on withdrawal.