Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the UK Infrastructure Bank is investing via third party funds rather than directly.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK Infrastructure Bank makes independent investment decisions based on its four investment principles: · The investment helps to support the Bank’s objectives to drive regional and local economic growth or support tackling climate change. · The investment is in infrastructure assets or networks, or in new infrastructure technology.These principles help assess what projects should be taken forward in line with UKIB’s objectives to tackle climate change and drive regional and local economic growth. The Bank’s investment team assesses each proposition on a case-by-case basis, working to identify the most appropriate financing structure in the context of the Bank’s mandate. I have asked the Bank to write to you directly on the approach that it takes to its investments in third party funds.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Cost of Living Payment for people on means tested benefits, when claimants of tax credits will receive that payment.
Answered by Simon Clarke
The Department for Work and Pensions will make the payment in two lump sums to those receiving means-tested benefits - the first from July, the second in autumn. Tax credits claimants who also receive an eligible means-tested benefit from DWP will receive their Cost of Living Payment from DWP.
HM Revenue and Customs will then make first payments in autumn, and second payments in winter, to those who claim tax credits but do not receive any eligible means-tested benefits from DWP. This is necessary to allow time for HMRC to carry out de-duplication on data for those who have already received a payment from DWP.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Energy Profits Levy, Technical Note, published on 26 May 2022, if he will place in the Library the figures for the total estimated amount the Energy Profits Levy will be reduced in (a) 2022-23 and (b) each of the years of the forecast horizon to 2025-26 as a result of (i) investment expenditure within the investment incentive allowance and (ii) loss relief.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As set out in “Energy Profits Levy Factsheet - 26 May 2022”, the new Energy Profits Levy will raise around £5 billion over the next year.As part of the levy a new tax relief is being introduced to encourage firms to invest in the UK. The new 80% Investment Allowance will mean businesses will overall get a 91p tax saving for every £1 they invest.
The Government expects the combination of the levy and this investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.
To appropriately tax the extraordinary profits, companies will not be able to offset previous losses or decommissioning expenditure against profits subject to the levy.
A full costing of the policy will be certified by the independent Office for Budget Responsibility at the Budget.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Energy Profits Levy, Technical Note, published on 26 May 2022, if he will place in the Library the figures for the size of the tax base for the Energy Profits Levy in (a) 2022-23 and (b) each of the years of the forecast horizon to 2025-26.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The latest data on Corporation Tax (CT) receipts and liabilities for ring fenced oil and gas companies can be found on GOV.UK. The data is available within Table 3C of the “Corporation Tax statistics tables 2021” publication. [1]
A full costing of the Energy Profits Levy will be certified by the independent Office for Budget Responsibility at the Budget.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the funding to public sector employers to offset the costs of the introduction of the health and social care levy has been distributed.
Answered by Simon Clarke
Public sector compensation for employer costs of the Health and Social Levy was allocated to departments as part of the 2021 Autumn Budget and Spending Review. This specific compensation forms one part of their total DEL budgets.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact that further non-pharmaceutical interventions to limit the spread of covid-19 in China may have on the UK economy; and if he will place a copy of that assessment in the Library.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is mindful of both the domestic and international risks that might affect the UK economy. We monitor these risks closely, including the recent rise in Covid-19 cases in China. The Government remains committed to supporting businesses, people, and jobs.
In its December 2021 record, the Financial Policy Committee of the Bank of England noted that “the interim results of the 2021 Solvency Stress Test indicate that the UK banking system is resilient to the direct effects of a severe downturn in China and Hong Kong, as well as indirect effects through sharp adjustments in global asset prices”.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of an employee earning £25,000, how much (a) Income Tax and (b) National Insurance Contributions, they would be paying in each of 2021-22 and 2022-23, in both (i) nominal and (ii) 2021-22 prices; and if he will place a copy of the results of that calculation in the Library.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government does not routinely publish estimates of tax liability by income level, as it is dependent on an individual’s circumstances and can vary between people with the same annual incomes.
As announced at Spring Statement 2022, the increase in the starting thresholds of National Insurance contributions (NICs) will benefit almost 30 million working people. This is a tax cut worth over £330 a year, for a typical employee, from July 2022.
From July 2022, around 70 per cent of workers who pay NICs will pay less NICs than they otherwise would have, even after accounting for the introduction of the Health and Social Care Levy.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will commission the Office for Budget Responsibility to make an estimate of the amount of tax that will be raised from item 10 in the Spring Statement 2022, HMRC: investment in compliance; and if he will place a copy of that estimate in the Library.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
At Spring Statement 2022, the Office for Budget Responsibility estimated the total amount of tax that will be raised from ‘HMRC: investment in compliance’ to be £3,155 million between 2021-22 and 2026-27.
Further information, including an annual breakdown of the Exchequer impact, can be found on page 13 of the Spring Statement 2022 policy costings document, available here:
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Health and Social Care Levy, how much is being allocated in 2022-23, 2023-24 and 2024-25 as compensation for the additional cost to public sector employers.
Answered by Simon Clarke
As part of the 2021 Autumn Budget and Spending review, full supporting documents were published by HM Treasury. These documents can be found here: Autumn Budget and Spending Review 2021: documents - GOV.UK (www.gov.uk)
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential change in the estimated number of (a) adults and (b) children living in absolute poverty after housing costs between 2021-22 and 2022-23.
Answered by Simon Clarke
HM Treasury distributional analysis published at Spring Statement 2022 shows that in 2024-25, government decisions since Spending Round 2019 will have benefitted the lowest-income households the most, as a proportion of income. Our modelling also shows that:
With around 1.3 million vacancies across the UK our focus is firmly on supporting people into and to progress in work as we know that work is the best and most sustainable route out of poverty. The government’s Plan for Jobs, Way to Work campaign and £3.8 billion investment over the parliament in skills by 2024-25 is helping do this.
The government is also providing support worth over £22 billion in 2022-23 to help families with the cost of living. This includes providing millions of households with up to £350 to help with rising energy bills, a reduction in the Universal Credit taper rate and freezes to alcohol duty. The Spring Statement went further, with the government announcing an increase to the annual National insurance Primary Threshold and Lower Profits Limit to £12,570, a cut to fuel duty, and an additional £500 million to help with the cost of essentials through the Household Support Fund. In addition, the National Living Wage has increased to £9.50 an hour from April 2022. This means an increase of over £1,000 to the annual earnings of a full-time worker on the NLW.