Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is his policy to maintain the planned (a) NHS, (b) Department for Work and Pensions and (c) Scottish Government allocations in real terms over the OBR forecast periods irrespective of inflation levels.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
As set out at Budget 2021, the government has maintained the Budget 2020 assumption of 2.1% real terms increases per year for core resource DEL spending after 2021-22, reflecting the latest OBR deflators. For capital DEL spending, the government has maintained the Budget 2020 assumption consistent with delivering over £600 billion in gross public sector investment over the next five years, the highest sustained levels of public sector net investment (PSNI) as a proportion of GDP since the late 1970s.
Specific allocations beyond 2021-22 are a matter for the Spending Review later this year, where the government will set future departmental resource DEL and capital DEL budgets as well as devolved administrations’ block grants. However, the government has already committed to a historic long-term settlement for the NHS with a cash increase of £33.9 billion a year by 2023-24. Further details on the Spending Review will be set out in due course.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the Barnett Consquentials are for (a) Scotland, (b) Wales and (c) Northern Ireland of his Budget 2021 announcement on funding for the Thalidomide Health Grant Renewal.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
At Budget 2021 a lifetime commitment was announced to continue the Thalidomide Health Grant in England once the existing funding commitment expires in 2023-24.
The devolved administrations have already received Barnett consequentials in the usual way for any funding provided to the Department of Health and Social Care at previous fiscal events and spending reviews up to 2021-22.
For 2022-23 onwards, the devolved administrations will receive funding through the Barnett formula at the upcoming spending review and future fiscal events. The government is committed to engaging closely with them to ensure all recipients benefit from this funding.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, further to the Secretary of State for Housing, Communities and Local Government's announcement on 10 February 2021, whether the tax to be levied on the residential property development sector will apply in Scotland.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Secretary of State for the Ministry of Housing, Communities and Local Government made an oral statement to the House of Commons on building safety on 10 February 2021.
That statement announced plans to introduce a new tax for the UK residential property development sector in 2022, to ensure the largest developers make a fair contribution to cladding remediation costs. The tax will apply on a UK-wide basis and the government will consult with industry on further policy design considerations in due course, to ensure the tax is proportionate and reflects developers’ ability to pay.
The tax will help fund a large spending package, and the devolved administrations will receive additional funding through the Barnett formula at future fiscal events and spending reviews, except where new departmental spending is funded by an England-only levy.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, further to the Secretary of State for Housing, Communities and Local Government's statement of 10 February 2021 on unsafe cladding, whether those funds will be subject to Barnett consequentials.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Secretary of State for the Ministry of Housing, Communities and Local Government made an oral statement to the House of Commons on building safety on 10 February 2021.
As set out in my answer of 22 February, the devolved administrations will receive additional funding through the Barnett formula at future fiscal events and spending reviews, except where new departmental spending is funded by an England-only levy. The devolved administrations can implement their own levies should they choose to do so.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will amend the Self-Employed Income Support Scheme to take into account periods of maternity leave.
Answered by Jesse Norman
The Government has amended the eligibility conditions of the Self-Employment Income Support Scheme (SEISS) to extend eligibility to self-employed parents who were ineligible for the SEISS because they did not submit a tax return for 2018-19, or whose trading profits in 2018-19 were less than their other income because they were pregnant or taking time out of their trade to care for their new-born or newly adopted child.
These individuals were able to claim the past three SEISS grants using either their 2017-18 self-assessment return or an average of their 2016-17 and 2017-18 returns as the basis for their eligibility. They also needed to meet the other standard eligibility criteria for support under the SEISS.
This was not a fundamental change to the SEISS, but an amendment to bring these individuals into eligibility for the scheme. It did not affect the grant calculation for those who submitted a 2018/19 return and were already eligible.
For those already eligible, the calculation for the SEISS grants uses an average of the self-employed individual’s trading profits, which evens out fluctuations in earnings which self-employed people may experience for any number of reasons.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reduce VAT to 5 per cent for the hair and beauty industry.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021.
This policy will cost over £2 billion and is a temporary measure. The Government keeps all taxes under review, and all stakeholder views are carefully considered. Any future decisions on tax policy will be made at Budget.
The Government has announced a significant support package to help businesses from a range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether people who have submitted tax returns for 2019-20 will be eligible to apply for the Self-Employment Income Support Scheme from 31 January 2021.
Answered by Jesse Norman
The Government will continue to look for ways to improve the Self-Employment Income Support Scheme (SEISS). It continues to consider the matter carefully and work closely with stakeholders to explore how best to support different groups. The Government will set out further details on the fourth SEISS grant in due course.
The SEISS continues to be just one element of a comprehensive package of support for the self-employed. Those ineligible for the SEISS may still be eligible for other elements of the support available. The Universal Credit standard allowance has been temporarily increased for 2020-21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, they may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to exempt people affected by dangerous cladding from Insurance Premium Tax.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Insurance Premium Tax is a tax paid by insurers on all general insurance premiums. Insurance pricing is a decision which is affected by a wide range of factors, and the taxes that insurers pay are just one part of this. It is hard to predict the impact of an exemption on insurance pricing for those affected by unsafe cladding, as this largely depends on how the insurers would react. In addition, any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
While there is no current plan to introduce an exemption on insurance pricing for those affected by unsafe cladding, all taxes are kept under review and the views expressed to us are carefully considered as part of the annual Budget process.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the UK-EU Trade and Cooperation Agreement on (a) jobs, (b) investment and (c) profitability in the financial services sector.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK-EU Trade and Cooperation Agreement gives legal certainty for financial services firms, with commitments on market access and fair treatment. The Agreement supports firms providing cross-border financial services. Beneficial provisions ensure UK service suppliers travelling to the EU for short trips do not face undue barriers like work permits, and UK business visitors are permitted to stay in the EU for 90 days in any 180-day period. We have also agreed commitments on visa facilitation for professionals engaged in cross-border trade.
It is the first free trade agreement the EU has ever reached based on zero tariffs and zero quotas, which will provide benefits for jobs, investment and profitability in the financial services sector. The Agreement also establishes a stable foundation for us to develop a constructive and engaged relationship with the EU on financial services, as sovereign equals. Importantly we have also agreed with the EU that we will establish an MoU setting out the parameters for our regulatory cooperation.
The government has also taken further action which complements the UK-EU Trade and Cooperation Agreement and will facilitate the retention of jobs, investment in, and profitability of the financial services sector. To promote openness and provide clarity and stability for industry, the Government announced multiple equivalence decisions for EEA Member States where it made sense for the UK to do so.
The UK has long been a global hub, leader and pioneer in financial services and the Government has an ambitious strategy to strengthen our world-leading financial centre now that we have left the EU. This is centred upon building long-lasting financial partnerships around the world, maintaining the high regulatory standards that make the UK an attractive place to do business, and being at the forefront of innovation so we can create and seize opportunities in the markets of the future.
On 9 November, the Chancellor also set out plans to bolster the dynamism, openness and competitiveness of the sector – including issuing the UK’s first ever Sovereign Green Bond, becoming the first country in the world to make TCFD-aligned disclosures mandatory, reviewing the UK’s listings regime to attract the most innovative firms, and leading the global conversation on new technologies like stablecoins and Central Bank Digital Currencies. The announcements have been praised by industry for being supportive, pragmatic and positive.
Asked by: Alison Thewliss (Scottish National Party - Glasgow Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to seek a future agreement with the EU on financial services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Trade and Cooperation Agreement with the European Union gives legal certainty for financial services firms in line with recent EU precedent and provides a stable foundation for us to develop a constructive and engaged relationship with the EU on financial services, as sovereign equals. Alongside the Agreement, the UK and EU made a joint declaration that we will establish structured regulatory cooperation for financial services and agree by March 2021 a Memorandum of Understanding to provide a framework for this cooperation.