Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether the Crown Estate is the property of the reigning monarch; whether a majority of the income from the Estate is used in the interest of taxpayers; and what is the amount by which taxpayers benefited in the tax year 2014–15.
Answered by Lord O'Neill of Gatley
The Crown Estate belongs to the reigning monarch 'in right of The Crown', that is, it is owned by the monarch for the duration of their reign, by virtue of their accession to the throne. But it is not the private property of the monarch - it cannot be sold by the monarch, nor do revenues from it belong to the monarch. The revenue surplus from the Estate is paid to the Consolidated fund. For 2014-15, this was £285.1million.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what are the implications for the United Kingdom of the establishment of the European Fund for Strategic Investment; and whether the financing of the scheme will lead to increased United Kingdom contributions to the European Union budget.
Answered by Lord O'Neill of Gatley
The regulation is clear that the establishment of the European Fund for Strategic Investments is fully consistent with the terms of the multiannual financial framework, as secured by the Prime Minister in 2013 which delivered a real terms cut to the seven-year EU budget for the first time.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they plan to extend the right of access to pension funds available to employees in the private sector to those working in the public sector; and if not, why not.
Answered by Lord O'Neill of Gatley
The Government has no current plans to extend the pension flexibilities to members of unfunded, defined benefit, public service pension schemes. The last Government restricted transfers from unfunded, defined benefit, public service pension schemes to those arrangements from which the member may acquire a right or entitlement to flexible benefits in order to protect the taxpayer from the increased in-year costs that would result should a large number of members of such schemes elect to transfer out to a scheme providing flexible access to pension pots.
In an unfunded public service pension scheme, there is no fund of assets with which to finance transfer payments. Instead, they are funded from contributions from current members and their employers, and through general expenditure.
Therefore, should the introduction of the flexibilities have led to an increase in the number of members transferring out of their unfunded public service scheme to a scheme providing flexible benefits, there would have been a direct cost to Government. For every extra pound paid out in transfers, the Government would have had one less pound to spend that year on public services.
The Government estimates that if 1% of all public service workers reaching retirement took their benefits flexibly, it could cost the tax payer £200m a year. The Government does not think it is fair to ask taxpayers to meet such in-year costs.
Members of funded, defined benefit, public service pension schemes, such as the Local Government Pension Scheme, continue to be able to transfer. This is because there is a fund of assets available for use to meet the cost of the transfers. Government took the decision to treat funded schemes differently for this reason, extending freedom and choice to as many individuals as possible.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what is the United Kingdom's financial involvement in the International Monetary Fund; and what percentage of the whole it comprises.
Answered by Lord O'Neill of Gatley
The International Monetary Fund (IMF) is primarily a quota-based institution. The UK’s quota subscription to the IMF is 10,738.5 million Special Drawing Rights, equivalent to £10,009 million at 31 March 2015. This accounts for 4.5% of total quotas at the IMF.
There are a number of other financial arrangements and associated transactions between the UK and the IMF. The IMF routinely publishes information on its members’ financial positions in the IMF, including for the UK. The Government also publishes complementary information in the annual accounts of the National Loans Fund and Exchange Equalisation Account.
Further details are available on the IMF and gov.uk websites.[1]
[1] http://www.imf.org/external/np/fin/tad/exfin1.aspx https://www.gov.uk/government/collections/hmt-central-funds
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what is their assessment of recent research by the Taxpayers' Alliance indicating that the United Kingdom's true national debt is £8.6 trillion.
Answered by Lord O'Neill of Gatley
According to the latest Public Sector Finances release (May 2015) produced by the Office for National Statistics (ONS), Public Sector Net Debt (PSND) stands at £1.5 trillion. This is the government’s usual measure of debt, and the measure on the basis of which the official forecasts from the Office for Budget Responsibility (OBR) are produced.
The number quoted by the Taxpayers’ Alliance includes many future and government liabilities not generally included in debt figures and it does not include corresponding future assets, physical assets, illiquid financial assets or future revenues.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what is their assessment of the European Union Five Presidents' Report published on 22 June recommending the ceding of powers by member states to European Union institutions and the creation of a eurozone treasury.
Answered by Lord O'Neill of Gatley
The Report is part of an ongoing process to identify next steps to better governance in the euro area.
The government’s position is that the UK benefits from the Single Market, and does not want to stand in the way of the euro area resolving its difficulties. But we will not let the integration of the euro area jeopardise the integrity of the Single Market or in any way disadvantage the UK.
That is one of the important objectives we seek in our renegotiation with the EU.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what is their assessment of the judgment of the European Court of Justice ending the value added tax concession on energy-saving products for non-social housing.
Answered by Lord O'Neill of Gatley
The government is currently considering the full implications of the decision of the European Court of Justice on the application of the VAT reduced rate to the installation of energy saving materials.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what discussions they have had with the European Commission following its formal request that the United Kingdom end the tax exemption currently available to small cider producers.
Answered by Lord O'Neill of Gatley
The government’s support for small cider makers has helped create a diverse and vibrant market, improving consumer choice and creating jobs. We are therefore studying the Commission’s arguments carefully, but the government’s support for this unique British industry will continue.
Most recently, to support the wider industry, the duty on lower strength cider was cut by 2 per cent at Budget 2015, with a similar benefit in cash terms for higher strength still cider.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, further to the Written Answer by Lord Deighton on 16 February (HL4632) concerning European Union regulations to break up banks in the European Union, whether they or the European Commission would make the final decision when any action was proposed against United Kingdom banks; and whether Parliament would be involved in any such proposals.
Answered by Lord Deighton
In order to address the systemic risk posed by UK banks, Parliament has legislated, via the Banking Reform Act 2013 (BRA), for such action to be taken through structural separation. This Act is to be implemented by the Prudential Regulation Authority. In the context of the ongoing negotiations on the proposed EU regulation for Bank Structural Reform, the Government is working to ensure that the BRA is maintained and that any other impact on UK banks is proportionate and kept to a minimum. It is the Government’s firm belief that banks should be supervised at the national level as local supervisors are best placed to understand the specificities of the national economy and its financial stability concerns. This is a critically important dossier for all Member States, in particular given the direct application of an EU regulation.
Asked by: Lord Stoddart of Swindon (Independent Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what is their assessment of the likely consequences for the United Kingdom of the decision of the European Central Bank to apply one trillion euros of quantitative easing to the Eurozone; and from what source the money will be financed.
Answered by Lord Deighton
The Treasury regularly monitors global economic developments, including those in the euro area, and their impact on the UK as part of the normal process of policy development.
It is not for the Government to comment on the appropriate monetary policy stance for the euro area.
Nonetheless, the Chancellor has made clear that the Government fully supports Mario Draghi’s efforts to ensure that the ECB does whatever it takes to meet its inflation mandate.