Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will review the scope of the Plastics Packaging Tax to exempt EN 13432–certified compostable materials; and what assessment has been made of the potential impact of including compostable materials within the tax on growth and innovation in the biodegradable and biobased materials industry and on the delivery of the UK’s circular economy objectives.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government keeps all taxes under review as part of the policymaking process. The Plastic Packaging Tax provides a price incentive for businesses to use recycled plastic in the manufacture of plastic packaging.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the cost of (a) quarterly tax returns and (b) mandatory use of Making Tax Digital for Income Tax software to small and medium enterprises.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Making Tax Digital (MTD) for Income Tax quarterly updates are not the same as tax returns. They are simple, unadjusted summaries of income and expenditure, populated automatically through software and easily submitted. The latest published assessment of MTD for Income Tax impacts is available at:
The government has worked with the software industry to ensure a wide range of software choices to suit varying needs and budgets including free and low-cost software options. HMRC's software choices page can be found here:
Quarterly updates will support taxpayers in getting get their tax right and allow customers to call-up estimates of their emerging liability on-demand throughout the tax year. This helps ensure everyone pays the right amount of tax at the right time
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of the misclassification of waste into the wrong landfill tax band by the operators of licensed sites on the level of unpaid landfill tax.
Answered by James Murray - Chief Secretary to the Treasury
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. These statistics are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK (www.gov.uk). The latest estimate for England and Northern Ireland of the Landfill Tax gap is 14.5% of the theoretical Landfill Tax liabilities, or £100 million, in the 2022 to 2023 tax year.
The illustrative estimates of the monetary components of the 2022-23 Landfill Tax gap are £75 million at unauthorised sites and £90 million of misclassified plus £35 million underdeclared waste at authorised sites less £100 million compliance yield (tax gap estimates are calculated net of compliance yield).
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of taxable waste being disposed of at unlicensed sites on the level of unpaid landfill tax.
Answered by James Murray - Chief Secretary to the Treasury
HM Revenue and Customs (HMRC) estimates the size of the tax gap, which is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. These statistics are published annually and are available at: Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023 - GOV.UK (www.gov.uk). The latest estimate for England and Northern Ireland of the Landfill Tax gap is 14.5% of the theoretical Landfill Tax liabilities, or £100 million, in the 2022 to 2023 tax year.
The illustrative estimates of the monetary components of the 2022-23 Landfill Tax gap are £75 million at unauthorised sites and £90 million of misclassified plus £35 million underdeclared waste at authorised sites less £100 million compliance yield (tax gap estimates are calculated net of compliance yield).
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of (a) liaising with the Azure and Barclays Action and Support Group on the loans issued outside of the April 2014 – April 2016 period and (b) investigating the allegations of regulatory failures associated with Barclays Partner Finance and Azure Services Ltd.
Answered by John Glen
The Government is aware of the campaign by the Azure and Barclays Action and Support Group for consumers to receive compensation for loans outside the April 2014 – April 2016 period.
However, the regulation of consumer credit is a matter for the Financial Conduct Authority (FCA), which operates independently of Government. The Treasury has no general power of direction over the FCA and cannot intervene on specific matters.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he will provide to residents of park homes who are not eligible for the energy bill rebate because their energy is supplied direct to the operating business and then recharged to the resident.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.
There are certain situations where a third party will be responsible for the bill (and be named on it). In this situation, any electricity charges are then passed onto the end user, typically through an all-inclusive rent (in the case of a landlord/tenant) or ‘pitch’ charges, e.g. for a park home.
The Department for Business, Energy and Industrial Strategy (BEIS) will explore this issue further, including by gathering further information via the government consultation on the delivery of the Energy Bill Support Scheme for households.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will use returned Discretionary Grant Funds unspent by local authorities to provide financial assistance to close companies directors who operate businesses from their homes, have had no access to business grants or local authority discretionary funds and have been unable to trade throughout the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Local Authorities had significant discretion when it came to setting the eligibility criteria for their discretionary grant schemes. Although the Government encouraged Local Authorities to focus on small businesses which faced high fixed property-related costs and which had missed out on the main business grant schemes due to the way they interacted with the business rates system, Local Authorities were able to pay grants to other kinds of businesses, according to their assessment of local economic need.The business grant funds, including the Discretionary Grant Fund, were primarily intended to support small businesses which faced high fixed property-related costs during the strict ‘lockdown’ period, when consumer footfall was dramatically reduced. As most businesses are now able to reopen, it is right that we wind up the grant schemes, all of which closed to new applicants on 28 August. The Government continues to review the economic situation and consider what support businesses need. However, there are currently no plans to re-open the business grants to new applications.
We expect that Local Authorities will spend the vast majority of the funding which they were allocated for the Discretionary Grant Fund. We do expect there to be some underspends from the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund. We have asked Local Authorities to return any underspends to the Exchequer.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to expedite the bringing forward of legislative proposals for a plastic packaging tax as a result of the (a) fall in global oil prices and (b) the rise in the level of production of virgin plastic in order to protect the financial viability of recycling companies in the UK.
Answered by Kemi Badenoch - Leader of HM Official Opposition
At Budget 2020, the Government announced key details of the world leading Plastic Packaging Tax, which will help to tackle the pressing issue of plastic waste. The initial rate of the tax will be £200 per tonne and it will be paid by manufacturers and importers of plastic packaging that contains less than 30% recycled plastic.
The Government is continuing to monitor both the global oil price and recycling capacity in the UK. The Government expects the tax to create greater demand for recycled material and in turn stimulate increased levels of recycling and collection of plastic waste. Since the announcement of the tax at Budget 2018 there has been increased investment in the UK’s recycling capacity, partly due to the tax.
The Government has set a rate of £200 per tonne for the tax as this is expected to make using recycled plastic the most cost-effective option for a business in many cases. Following its introduction in April 2022, the rate will be kept under review to ensure that the tax remains effective in increasing the use of recycled plastic in plastic packaging.
The Government is now consulting on the detailed design and implementation of the tax, and will publish draft primary legislation before it is included in a future Finance Bill, followed by draft secondary legislation and guidance. It is right that the Government consults on the detail of the tax in this manner to make sure it works as intended and that businesses are given time to prepare.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he plans to make available to recently self-employed people who are ineligible for the Self-Employment Income Support Scheme as a result of their 2018-19 self-assessment tax return including a one-off redundancy payment which HMRC classes as non-traded income.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Self-Employment Income Support Scheme (SEISS), including the eligibility requirement that an individual’s trading profits must be at least equal to their non-trading income, is designed to target those who most need it, and who are most reliant on their self-employment income.
If an individual is not eligible based on their 2018-19 Self Assessment return, HM Revenue & Customs will then look at their Self Assessment returns from 2016-17, 2017-18 and 2018-19 to determine their eligibility. This reduces the impact of one-off events, such as a redundancy payment, in determining eligibility. More detail is available at www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme#eligibility.
The first £30,000 of a termination payment is not chargeable to income tax and is therefore not included in the calculation of an individual’s non-trading income. This further reduces the impact that a redundancy payment may have on eligibility for the SEISS.
Individuals who received more than half their income from non-trading sources in 2018-19 and did not have trading profits from earlier Self Assessment returns may still be eligible for other elements of the financial support provided by the Government. The SEISS is one element of a comprehensive package of support for individuals and businesses, including Bounce Back loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays, and other business support grants. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
Asked by: Alec Shelbrooke (Conservative - Wetherby and Easingwold)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the effect of the Valuation Office’s rounding policy on applications for Coronavirus Business Grants; and if he will (a) temporarily suspend the rounding policy used by the Valuation Office Agency when assessing the rateable value of a premises and (b) ensure that SMEs that benefit from that suspension are able to submit backdated applications for Coronavirus Business Grants.
Answered by Kemi Badenoch - Leader of HM Official Opposition
A property’s valuation for rating purposes is the Rateable Value (RV) shown in the Rating Lists. It is this readily available information which Local Authorities have used to help determine eligibility for grants under the Small Business Grant Fund, and Retail, Hospitality, and Leisure Grant Fund. Linking these grants to the existing business rates system has allowed Local Authorities to make payments quickly to businesses in need.
The RV represents the VOA's opinion of the open market rental value at the valuation date. Rounding ensures consistency of assessment between comparable properties. It also follows practise in the rental market. Considerations other than valuation questions cannot influence Rateable Values.