Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the £200 per tonne plastic packaging tax will apply to 100 per cent compostable packaging; and if he will make a statement.
Answered by Kemi Badenoch - President of the Board of Trade
On 12 November, the Government published the summary of responses to the recent consultation on the detailed design and implementation of the Plastic Packaging Tax. This included confirming the consultation proposal to include compostable and bio-based plastic packaging in the scope of the tax. As set out in the consultation, all packaging, including that which is 100% compostable, will be in scope of the tax if plastic is the predominant material by weight.
As set out in the summary of responses to the consultation, the Government believes that alternative plastics can play a role in addressing plastic waste if used in the right circumstances. However, further evidence is needed on the impact of widespread adoption of such materials, and it is right to include them within scope of the tax at this stage. As part of the Bioeconomy Strategy, the Government is working with industry and the research community to better understand the impact of using bio-based, biodegradable and compostable plastics. Following the conclusion of the Bioeconomy Strategy, the Government will consider further the treatment of these plastics in relation to Plastic Packaging Tax.
The Government carefully considered the impacts of the tax when making the decisions set out in the summary of responses to the consultation. More information on impacts is available in the Tax Information and Impact Note - https://www.gov.uk/government/publications/introduction-of-a-new-plastic-packaging-tax/introduction-of-a-new-plastic-packaging-tax
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support people in shared appreciation mortgage schemes.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority (FCA) has responsibility for the conduct regulation of mortgages, including shared appreciation mortgages. The FCA sets the rules regarding the information that has to be disclosed before, during and after sale and, in addition, rules in respect of the advice that should be given to consumers.
The Government is determined that lenders should treat borrowers fairly. Any dispute arising between a lender and its customers is usually best resolved by the parties involved. However, if a shared appreciation mortgage holder believes they have been missold a shared appreciation mortgage, they are able to take their complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body set up to provide arbitration in such cases.
The FOS received a number of complaints from people who purchased shared appreciation mortgages and are alert to the issues involved. However, the FOS said in its Annual Review for 2003-04 that in most cases it had not upheld the shared appreciation mortgage mis-selling complaints it had received because it had concluded that the documents were clear and the terms had been fully explained to the borrowers. Therefore, there appear to be no grounds for Government intervention in this instance.
The FOS remains willing to consider all cases on their individual merits, and any customer that has not already been in touch with the FOS may wish to contact the organisation. The FOS can be contacted by post at: Financial Ombudsman Service, Exchange Tower, London, E14 9SR, by telephone on 0800 023 4567, or through their website at www.financial-ombudsman.org.uk.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the (a) direct and (b) wider effect of ending the VAT Retail Export Scheme on the retail, hospitality and tourism sectors in Scotland.
Answered by Kemi Badenoch - President of the Board of Trade
Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:
- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.
- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.
- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.
- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.
The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.
The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.
In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum.
The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.
HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens.
The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.
The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with (a) retail industry bodies and (b) trade unions on the effect on the retail sector of ending the VAT Retail Export Scheme.
Answered by Kemi Badenoch - President of the Board of Trade
Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:
- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.
- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.
- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.
- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.
The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.
The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.
In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum.
The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.
HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens.
The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.
The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will (a) reverse his decision to end the VAT Retail Export Scheme or (b) postpone its implementation until an impact assessment has been conducted.
Answered by Kemi Badenoch - President of the Board of Trade
Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:
- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.
- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.
- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.
- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.
The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.
The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.
In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum.
The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.
HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens.
The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.
The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the reduction in VAT from 20 per cent to 5 per cent announced in the summer economic update on 8 July 2020 applies to soft play centres.
Answered by Jesse Norman
Admissions to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities are covered by the new reduced rate of VAT for attractions. This is set out in GOV.UK guidance on admission charges to attractions. This guidance includes examples of what is considered to be a similar cultural event. Whether the temporary reduced rate applies depends on the facts of each individual case.
Further detail about the operation of the new reduced rate more generally can be found in Revenue and Customs Brief 10 (2020) on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions, which can be found on GOV.UK.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that banks comply with Financial Ombudsman decisions to compensate claimants.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Final decisions made by the Financial Ombudsman are binding on firms, up to certain limits, if they are accepted by the customer. If a firm fails to comply with the Financial Ombudsman's decision, the ombudsman can report it to the Financial Conduct Authority and a business can ultimately lose its authorisation if it doesn’t comply. A complainant can also recover the money awarded, or enforce any direction made, through the courts.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the Barnett consequentials are for Scotland with regards to the £1 billion education catch-up fund announced on 19 June 2020.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Any new funding for the Department for Education will have the Barnett formula applied to it in the usual way.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many tax credits claimants in Scotland have (a) notified a change of circumstances and (b) ended their claim since the 11 March 2020.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
From the 11th March 2020 until Tuesday 9th June 2020 there were around 110,000 notifications of change of circumstances from customers in tax credits in Scotland. In the same period around 18,000 tax credits awards in payment in Scotland have ended.
Asked by: Ian Murray (Labour - Edinburgh South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many written instructions as described in section 5.5 of the Ministerial Code have been issued by Ministers in each year since 2010; for what reason each instruction was issued; and in which Department they were issued.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Ministerial Directions are published on gov.uk. As set out in paragraph 3.4.5. of “Managing Public Money”,[1] it is the responsibility of the relevant accounting officer to arrange for the existence of the direction to be published, no later than in the next report and accounts, unless the matter must be kept confidential.
There have been 27 Ministerial Directions published since April 2011, set out in the table attached. Prior to this date, publication was not required.
Date | Department | Direction | Reason(s) | Links |
January 2015 | Department for Business, Innovation and Skills | Hatfield Colliery Partnership Ltd | Value for money | |
February 2015 | Department for Transport | Northern and TransPennine Express franchises 2015: invitations to tender | Value for money | |
March 2015 | Department for Transport | Manston Airport: procuring consultants for independent review | Value for Money | |
June 2015 | Department for Business, Innovation and Skills | Royal Mail Employee Shares (1) | Value for money | |
June 2015 | Cabinet Office and Duchy of Lancaster | Kids Company | Value for money | |
June 2015 | Department for Environment, Food and Rural Affairs | Flood reinsurance scheme | Value for money | |
October 2015 | Department for Business, Innovation and Skills | Royal Mail Employee Shares (2) | Value for money | |
October 2015 | Department for Business, Innovation and Skills | Redcar Steelworks | Value for money | |
May 2016 | Department for Transport | London Garden Bridge | Value for money | |
July 2016 | Cabinet Office | Special Advisers’ Pay | Value for money | |
January 2018 | Department for Environment, Food and Rural Affairs | European Union exit costs | Propriety | |
February 2018 | Department for Transport | European Union exit preparations | Propriety | |
March 2018 | Ministry of Housing, Communities and Local Government | Local government overpayment | Propriety | |
March 2018 | Department for Business, Energy & Industrial Strategy | European Union exit preparations – market surveillance | Propriety | |
March 2018 | Department for International Trade | Spend before Royal Assent on EU Exit costs | Propriety | |
May 2018 | Department for Education | T Levels delivery time-table | Feasibility | |
June 2018 | UK Export Finance | Support for export of Typhoon aircraft to Qatar | Value for money | |
April 2019 | UK Export Finance | Increased cover for Iraq | Regularity and value for money | |
May 2019 | Ministry of Justice | Financial assistance for subcontractors affected by the collapse of Working Links | Value for money | |
May 2019 | Ministry of Housing, Communities & Local Government | Remediation of private sector residential buildings with unsafe ACM cladding | Value for money | |
July 2019 | Home Office | Windrush Compensation Scheme | Regularity and Propriety | |
November 2019 | Department for Business, Energy and Industrial Strategy | Continuation of Official Receiver’s Indemnity | Value for money | |
November 2019 | National Health Service | NHS Pension tax charges | Regularity and Priority | |
March 2020 | Department for Business, Energy and Industrial Strategy | (Coronavirus (COVID-19) Support Fund for Retail, hospitality and Leisure Business | Value for Money Feasibility | |
March 2020 | Department for Business, Energy and Industrial Strategy | Coronavirus COVID-19 the Small Grants Fund | Value for Money Feasibility | |
March 2020 | Department for Health and Social Care | Coronavirus (Covid-19): Ministerial direction on spend. | Regularity | |
May 2020 | Ministry of Communities and Local Government | Grant for unsafe cladding | Value for Money |
[1] https://www.gov.uk/government/publications/managing-public-money