Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the reasons for the reduction in wage growth between March and May 2018.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
According to the Office for National Statistics (ONS), the level of total average weekly earnings has been growing steadily since January 2017, between March and May 2018 it increased from £515 to £517. Total real pay growth was 0.1% in the three months to May. The Office for Budget Responsibility (OBR) expect average earnings to grow faster than inflation in every year of the forecast.
The employment rate is currently at a record high and the Government is taking action to support wages. Supported by the introduction of the National Living Wage, the lowest paid have seen their wages grow by 7% above inflation between April 2015 and April 2017.
Boosting productivity is the only way to achieve sustained wage growth and higher living standards. That’s why in the Autumn Budget, the Chancellor announced that the National Productivity Investment Fund, introduced in 2016 to invest in housing, R&D and infrastructure, would be extended and increased from £23bn to £31bn.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to paragraph 33 of the Fiscal sustainability report – July 2018, published by the Office of Budget Responsibility on 17 July 2018, what assessment he has made of the implications for his Department's policies that Brexit is more likely to weaken the public finances than strengthen them over the medium term.
Answered by Elizabeth Truss
As set out in its White Paper published on 12 July 2018, the government is seeking a deep and comprehensive economic partnership with the EU, broader in scope than any other that exists between the EU and a third country. This partnership will protect jobs and support growth while respecting the UK’s sovereignty, preserving the constitutional and economic integrity of the UK’s own Union, and respecting the EU’s autonomy and the integrity of the Single Market.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the reasons for the reductions in the level of investment in the UK car industry in the last 12 months.
Answered by Elizabeth Truss
The latest figures from the Office for National Statistics figures show that in 2017, overall manufacturing investment grew by 3.1% and car sales were 25% higher than in 2010. The automotive sector is a valuable part of the UK economy and the government has recently established the first automotive sector deal. Through mechanisms such as the Advanced Propulsion Centre, we have approved R&D projects worth £680 million with £322 million of Government investment.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect on the (a) economy and (b) NHS of the 2019 Loan Charge.
Answered by Mel Stride - Secretary of State for Work and Pensions
The 2019 loan charge is targeted at artificial schemes where earnings were paid in the form of non-repayable loans made by an offshore third party.
It is unfair to ordinary taxpayers to let anybody benefit from contrived tax avoidance of this sort, and that is why this government has taken action to ensure that everybody pays the taxes they owe.
Given the specific targeting of these contrived tax avoidance schemes, the 2019 loan charge is not expected to have significant effects on the economy or the NHS.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of (a) levying VAT against (i) flight training and (ii) aviation gas on the number of trained UK pilots and (b) the shortage of trained UK pilots on the economy.
Answered by Mel Stride - Secretary of State for Work and Pensions
HM Treasury and HM Revenue and Customs do not hold information on VAT revenues that can be broken down to assess the impact of VAT on the number of trained UK pilots.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential merit of the introduction of favourable financial grants to rebuild and diversify the economies of tax havens that are conditional on benchmarks on (a) transparency, (b) accountability and (c) cooperation to tackle offshore tax avoidance and evasion.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government has no plans to introduce such grants. The UK supports international efforts to tackle aggressive tax avoidance and evasion, and supports lists of non-co-operative jurisdictions for tax purposes in the OECD and EU to encourage jurisdictions to comply with relevant international tax standards. The UK also supports capacity building programmes to help jurisdictions implement these standards, including through the OECD’s Global Forum, the OECD’s Inclusive Framework on Base Erosion and Profit Shifting, and a dedicated capacity building unit in HMRC.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential merits for tackling offshore tax avoidance and evasion of the imposition of a withholding tax on all interest and dividend payments to people and companies in tax havens which reject reform.
Answered by Mel Stride - Secretary of State for Work and Pensions
Government has taken significant steps to tackle multinational avoidance. That includes the introduction of the diverted profits tax, which raised over £280 million in 2016/17, and a restriction on the deductibility of corporate interest, which is estimated to raise £1 billion per annum. It also includes measures to extend UK withholding tax on royalties paid to low-tax jurisdictions
The UK continues to engage with international efforts to improve adherence to international tax standards, including through the EU list of non-cooperative jurisdictions which was agreed by EU Finance Ministers in December last year.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether the Government plans to match the funding provided by the European Regional Development Fund after the UK leaves the EU.
Answered by Robert Jenrick
The government has committed to launch the UK Shared Prosperity Fund after the UK leaves the EU, using money returning to the UK from European structural funds, and to consult widely ahead of its launch. Further details on design will be set out following the consultation; however, the fund will be designed to reduce inequalities between communities, and be focused on domestic priorities.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the National Audit Office report on PFI and PF2 published on 18 January 2018, what assessment he has made of the benefits of using publicly financed procurement with fixed-price contracts instead of private finance initiatives.
Answered by Robert Jenrick
Prior to approval, all Private Finance 2 proposals should be assessed in line with The HM Treasury’s Green Book, including a comparison against an appropriate publicly funded option.
Asked by: Faisal Rashid (Labour - Warrington South)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the National Audit Office report on PFI and PF2 published on 18 January 2018, whether his Department plans to conduct a review of the use of PFI and PF2 contracts and their long-term value for money.
Answered by Robert Jenrick
We have no plans currently to conduct such a review. Prior to approval, all privately financed contracts should be assessed in line with HM Treasury’s Green Book.