Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has he made of the impact of changes to the entitlement to use red diesel from 1 April 2022 on the construction sector in the context of rising fuel prices.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government announced at Budget 2020 that it would be removing the entitlement to use red diesel from most sectors and has legislated for this change to be implemented from April 2022. The Government has given affected businesses a year to prepare for the changes since they were confirmed at Spring Budget 2021, and many fuel suppliers and businesses will have already taken the steps needed to prepare.
These are important long-term reforms which will ensure most businesses currently using red diesel pay the same amount of tax as ordinary motorists, which more fairly reflects the harmful emissions produced. These reforms are also designed to incentivise the development and adoption of greener alternative technologies, and improvements in the energy efficiency of vehicles and machinery.
The Government recognised that this would be a significant change for some businesses and ran a consultation to gather information from affected users on the expected impact of these tax changes and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use red diesel beyond April 2022.
Following the consultation, the Chancellor announced at Spring Budget 2021 that the Government will grant further entitlements to use red diesel after April 2022 for a limited number of users. However, having assessed the cases made by other sectors to retain their red diesel entitlement, including the construction sector, the Government did not believe that they were compelling enough to outweigh the objectives of these reforms.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to postpone the proposed changes to red diesel and rebated biofuel due to come into effect on 1 April 2022.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government announced at Budget 2020 that it would be removing the entitlement to use red diesel from most sectors and has legislated for this change to be implemented from April 2022. The Government has given affected businesses a year to prepare for the changes since they were confirmed at Spring Budget 2021, and many fuel suppliers and businesses will have already taken the steps needed to prepare.
These are important long-term reforms which will ensure most businesses currently using red diesel pay the same amount of tax as ordinary motorists, which more fairly reflects the harmful emissions produced. These reforms are also designed to incentivise the development and adoption of greener alternative technologies, and improvements in the energy efficiency of vehicles and machinery.
The Government recognised that this would be a significant change for some businesses and ran a consultation to gather information from affected users on the expected impact of these tax changes and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use red diesel beyond April 2022.
Following the consultation, the Chancellor announced at Spring Budget 2021 that the Government will grant further entitlements to use red diesel after April 2022 for a limited number of users. However, having assessed the cases made by other sectors to retain their red diesel entitlement, including the construction sector, the Government did not believe that they were compelling enough to outweigh the objectives of these reforms.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to amend the existing work taper for Working Tax Credits in line with the changes to the earnings taper on universal credit.
Answered by Simon Clarke
The changes to the Universal Credit (UC) taper rate and work allowances announced at Autumn Budget 2021 apply to UC only, and the withdrawal rate in tax credits will remain at 41 per cent.
It is possible for tax credits claimants to make a new UC claim to benefit from the changes to the taper rate and work allowances, if they wish, although the government would strongly encourage making use of an independent benefit calculator before applying, to check UC entitlement.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to remove the 40 litre and over threshold from the proposed cut to VAT on the sale beer and cider.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the proposed VAT cut on the sale beer and cider on (a) small businesses and (b) breweries which do not supply their products in containers over 40 litres in capacity.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether trade unions organising seafarer ratings and officers will be consulted over the changes to the Tonnage Tax outlined in paragraphs 2.175 to 2.177 of the Autumn Budget and Spending Review 2021, HC 822.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Autumn Budget 2021, the Chancellor announced that the Government will introduce a package of measures to reform the UK’s Tonnage Tax regime, which will come into force from April 2022. These reforms aim to see more firms basing their headquarters in the UK, using the UK’s world-leading maritime services industry, and flying the UK flag.
The Government and industry will continue to work collaboratively on the training commitment, which supports the training of hundreds of new, skilled cadets every year. This will include engagement with stakeholders in trade unions and industry.
The Government will also review whether to include ship management within scope of the Tonnage Tax regime, and whether the existing limit that can be claimed in capital allowances by organisations leasing ships to Tonnage Tax participants remains appropriate. Relevant stakeholders will be consulted throughout this review.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential effect of the end of the Coronavirus Job Retention Scheme on the level of mortgage arrears.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Prior to the pandemic, mortgage arrears were at historically low levels.
At the height of the pandemic, the Government worked with the Financial Conduct Authority (FCA) to oversee an unprecedented package of forbearance measures for mortgage customers, including the provision of 2.9 million mortgage payment holidays and a ban on repossessions.
The Coronavirus Job Retention Scheme (CJRS) was also set up to support employers to retain their employees through the Covid-19 pandemic. To date, the scheme has succeeded in supporting 11.6 million jobs across the UK with employer claims totalling £68.5 billion, aiding businesses and protecting livelihoods.
While these measures have ended or are coming to a close, the Government will continue its efforts to support mortgage borrowers. For example, the Government will continue to offer Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit to help prevent repossession. The Government also aims to help people avoid repossession through protection in the courts under the Mortgage Pre-Action Protocol which makes it clear that repossession must always be the last resort for lenders. In addition, FCA guidance requires firms to continue providing support through tailored forbearance options, including further payment holidays, for borrowers facing ongoing financial difficulties as a result of Covid-19. Any borrowers worried about their mortgage payments should make early contact with their lender to discuss their options.
Bank of England data published on 14 September 2021 shows that arrears levels remain low, with the proportion of total loan balances with arrears at 0.89%.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Secretary of State for Health and Social Care's Answer of 15 April 2021 to Question 179033, on Coronavirus: Gyms, whether his Department has plans to introduce incentives similar to the Eat out to help out scheme for gyms and fitness facilities.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the significant disruption the necessary actions to combat Covid-19 are having on sectors like the fitness industry.
During this difficult time the Treasury is working intensively with employers, delivery partners, industry groups and other government departments to understand the long-term effects of social distancing across all key areas of the economy.
The Chancellor has already announced unprecedented support for individuals and businesses, to protect against the current economic emergency. By the end of March 2021, the Government made up to £20 billion available for business grants. At Budget 2021, the Government announced a further £5 billion of business grant support, including the Restart Grants Scheme, in which hospitality, accommodation, leisure, personal care and gym business premises in England will be eligible for grants up to £18,000, subject to their rateable value. The Restart Grants will replace the monthly Local Restrictions Support Grant and Local Restrictions Support Grant, which both closed at the end of March.
There are no current plans to introduce incentives like the Eat Out to Help Out scheme for gyms and fitness facilities. We will continue to monitor the impact of government support on public services, businesses, individuals and sectors, including the leisure, gyms and fitness sector, as we respond to this pandemic, and keep all policies under review.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to extend the 12 month interest and payment holiday under the Bounce Back Loan Scheme for (a) hospitality and (b) other businesses that may still be closed or operating at a reduced capacity when the first payment is due.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the Bounce Back Loan scheme, no repayments are due from the borrower for the first 12 months of the loan, giving businesses the breathing space they need during this difficult time. In addition, the Government covers the first 12 months of interest payments charged to the business by the lender.
In order to give businesses further support and flexibility in making their repayments, the Chancellor has announced “Pay as You Grow” (PAYG) options. PAYG will give businesses the option to repay their Bounce Back loan over ten years. This will reduce their average monthly repayments on the loan by almost half. Businesses will also have the option to move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times), or to pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).
Together, the 12-month payment holiday and interest-free period for borrowers, along with the PAYG options, form part of the Government’s unprecedented £280 billion support package for businesses to protect jobs - including paying wages through the furlough schemes and self-employed support payments, generous grants, tax deferrals.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
What estimate he has made of the level of infrastructure investment required to support the potential contribution of the (a) North and (b) Midlands to post covid-19 economic recovery.
Answered by Kemi Badenoch - President of the Board of Trade
In November, the government published the first ever National Infrastructure Strategy, setting out our comprehensive plan to transform infrastructure across the UK. The NIS announced a number of measures which will support the North and Midlands in their economic recovery from COVID 19, including: a new £4bn Levelling Up Fund to invest in local infrastructure priorities; £5bn to support UK-wide gigabit broadband roll-out; and a share of £4.2bn for intra-city transport settlements.
The NIS also announced that the government will set up a new UK infrastructure bank, which will be headquartered in the North and will support the UK’s economic recovery from the COVID 19 pandemic.