Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the recommendations of Lord Myners published in March 2001 in Institutional Investment in the United Kingdom: A Review will form part of their growth and productivity plans.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Institutional investment is vital for growth, and investment in starts ups and scale ups is an important part of that. The Myners Report contains valuable insights that are still valuable today. However, the pensions market in particular is now significantly different than it was in 2001. The Chancellor has launched a landmark pensions review which will focus on increasing investment, improving saver returns and tackling waste in the pensions system. This is alongside other major initiatives to drive economic growth such as the National Wealth Fund to mobilise private capital and institutional investment.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to oral evidence by officials on the work of HMRC given to the Treasury Select Committee on 24 April, how many HMRC employees on 1 January had earnings at or below the national minimum wage.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
HMRC complies with the statutory requirement and all colleagues are paid the National Living Wage rate or above.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many advance transfer pricing agreements have been signed by HM Revenue and Customs in each of the past five years.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
HM Revenue and Customs has entered into the following number of advance pricing agreements in the past five tax years:
This information is included in the Transfer Pricing and Diverted Profits Tax Statistics 2022 to 2023 which are publicly available and published on gov.uk[1].
[1] Transfer Pricing and Diverted Profits Tax statistics 2022 to 2023 - GOV.UK (www.gov.uk)
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February (HL1819), when Dame Linda Dobbs’ review into Lloyds Banking Group and HBOS Reading began; what period is covered by the review; when the review is due to be completed; when the review is expected to be completed; whether, and if so when, an interim report was published and how many victims of the fraud committed by six then employees of HBOS Reading have given evidence.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
The Dame Linda Dobbs Review was commissioned by Lloyds Banking Group, so HM Treasury is not in a position to answer questions on the scope and timing of the Review. You can find information about the review on its website (https://www.dobbsreview.com/), where an update was published earlier this month, and which has information on how to contact the Review.
When complete, the findings of the Dame Linda Dobbs Review will be shared with the FCA. The FCA will then consider whether further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will launch an independent inquiry into banking fraud at HBOS and Lloyds Banking Group.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
These issues are a matter for the Financial Conduct Authority (FCA) first and foremost as the independent non-governmental body responsible for regulating and supervising the financial services industry.
Dame Linda Dobbs DBE has been appointed by Lloyds Banking Group to consider whether the issues relating to HBOS Reading were investigated and appropriately reported to authorities at the time.
When complete, the findings of the Dame Linda Dobbs Review will be shared with the FCA. The FCA will then consider whether further action is appropriate.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many people and corporate bodies have been investigated, charged, and prosecuted for facilitating tax evasion under the Criminal Finances Act 2017, and what the outcomes of these investigation and enforcement activities have been in each case.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
The Criminal Finances Act 2017 came into effect on 30 September 2017 and are new offences applicable to organisations that fail to prevent the facilitation of tax evasion from that date onwards.
Updates on the number of HMRC interventions are provided bi-annually on Gov.UK pages Number of live Corporate Criminal Offences investigations - GOV.UK (www.gov.uk)
The Criminal Finances Act 2017 is specific legislation in relation to corporates and not individuals, so the element of the question pertaining to individuals is not applicable and no information can be provided in that respect.
However, as per a previous PQ HL6278 asked on 8th March 2023, tackling enablers of tax fraud remains a top priority for HMRC. HMRC is working with partners across the world to take action against enablers.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many adults in the UK are not expected to pay any income tax in 2023–24.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
The number of adults (people aged 18 and over) in the UK estimated to not pay any Income Tax in 2023-24 is approximately 17.8 million (rounded to 3 significant figures).
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to investigate the rates of saving by UK households.
Answered by Baroness Vere of Norbiton - Shadow Minister (Treasury)
The Government is committed to incentivising greater saving and investment, to help households save for their future goals and build greater financial resilience.
Individuals can save up to £20,000 into an Individual Savings Account (ISA) each year, and any savings income received on cash within an ISA is tax free. This, coupled with the Personal Savings Allowance of up to £1,000 for basic rate taxpayers and up to £500 for higher rate taxpayers, means that around 90% of people with savings income pay no tax on that income. Individuals aged 18 or over but under 40 can also open a Lifetime ISAs to save for buying a first home or for later life.
Last year, the Chancellor also secured agreement from the FCA to review the cash savings market. As a result, the FCA have published a 14-point action plan. Under the plan, firms should ensure they are effectively communicating their full range of suitable savings products to customers.
The Government will continue to monitor the rates of saving by UK households as part of its wider economic monitoring.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax revenues which could be raised by aligning the capital gains tax rates with those applied to wages and salaries.
Answered by Baroness Penn - Shadow Minister (Housing, Communities and Local Government)
As set out in the Government’s response to the Office of Tax Simplification's report on Capital Gains Tax (CGT) on 30 November 2021, substantial reforms to CGT rates and allowances would involve a number of wider policy trade-offs and so careful thought must be given to the impact that they would have on taxpayers, as well as any additional administrative burden on HMRC.
The Government will continue to keep the tax system under review to ensure it is simple and efficient.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the revenues which could be raised by levying national insurance upon chargeable capital gains.
Answered by Baroness Penn - Shadow Minister (Housing, Communities and Local Government)
National Insurance contributions (NICs) are part of the UK’s social security system. The system, based around the longstanding contributory principle, is centred around paid employment and self-employment, with employers, employees and the self-employed paying into the National Insurance Fund and providing funding for the NHS. Payment of NICs builds an individual’s entitlement to claim contributory benefits which then replace earnings in certain circumstances, for example if someone is unable to work or is retired. Non-employment income is generally excluded from liability to NICs as it is not derived from paid employment. Consequently, individuals with only non-employment income need to pay voluntary NICs in order to build entitlement.
The Government keeps all taxes under review.