Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to review the level of VAT charged on sunscreen products.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Under the current VAT rules, sun protection products are subject to the standard rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions and therefore is provided VAT free when dispensed by a pharmacist.
While we keep all taxes under review there are no plans to make changes. Representations on changes to the VAT system will be considered through the normal fiscal event process.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of removing VAT from sunscreen on the level of incidences of (a) melanoma and (b) non-melanoma skin cancer.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Under the current VAT rules, sun protection products are subject to the standard rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions and therefore is provided VAT free when dispensed by a pharmacist.
While we keep all taxes under review there are no plans to make changes. Representations on changes to the VAT system will be considered through the normal fiscal event process.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he last reviewed the lists of products that are (a) zero-rated for VAT and (b) subject to VAT at five per cent.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government keeps all taxes under review as part of the normal tax policy making cycle and Budget process.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to undertake a review of levels of VAT.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT is the UK’s third largest tax forecast to raise £161 billion in 2023/24, helping to fund key spending priorities such as public services, including the NHS, education and defence.
Although the Government keeps all taxes under review, there are no current plans to change the levels of VAT.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to (a) remove and (b) reduce VAT on essential healthcare products.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT rules do not distinguish between supplies on the basis of whether they might be considered essential. VAT is a broad-based tax on consumption, and the twenty per cent standard rate applies across a very broad range of goods and services. While there are exceptions to the standard rate, these are strictly limited by legal and fiscal considerations. One such exception is that medicines on the NHS prescription list are zero-rated for VAT when dispensed by a pharmacist.
Removing or reducing VAT on a broad range of healthcare products would likely come at a significant cost to the Exchequer, and with no guarantee that it would reduce the cost to consumers of the products themselves. While all taxes are kept under review, the Government has no current plans to make changes here.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to provide additional cost of living support to families with seriously ill children.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that the rising cost of living has presented additional financial challenges to many people, and especially to the most vulnerable members of society, such as children with serious health conditions and their families. That is why the Government is taking decisive action to support households while ensuring we act in a fiscally responsible way.
If a child or young person has extra-costs arising from their disability, then they may qualify for disability benefits such as Disability Living Allowance (DLA) for children or Child Disability Payment in Scotland. At Autumn Statement 2022, the Government announced that it will provide a further Disability Cost of Living Payment of £150 in 2023/24 to people in receipt of extra-costs disability benefits such as Child Disability Payment or DLA for children. This is additional to the £150 payment for recipients of disability benefits in 2022 already announced as part of the Cost of Living package in May. The families and/or carers of disabled children will benefit from this payment if they live in the same household as a disabled child. These payments can also be received in addition to the other Cost of Living Payments for households on means-tested benefits (such as Universal Credit), namely the £650 payment announced in May and the additional £900 payment announced at Autumn Statement.
Disabled children and their families will also benefit from other forms of non-means-tested support which the Government is providing to assist with household energy bills. We have taken decisive action to support millions of households with rising energy costs through the Energy Price Guarantee, which limits the price suppliers can charge customers for units of gas and electricity. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive further support this year through the £400 Energy Bills Support Scheme.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the feasibility of establishing a new lower band for electric cars under the Expensive Car Supplement.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Expensive Car Supplement applies to all cars with a list price of more than £40,000 – which captures approximately the 20% most expensive cars.
The Expensive Car Supplement exemption for EVs is due to end in 2025. New zero emission cars registered on or after 1 April 2025 will therefore be liable to pay the supplement where eligible. However, there will remain reduced rates for EVs for their first year of registration.
Like all taxes, the Chancellor keeps the Expensive Car Supplement under review.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with Cabinet colleagues on the potential impact of the Autumn Statement 2022 on the planned timetable for the transition to zero emission vehicles.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Chancellor meets regularly with his Cabinet colleagues on a range of issues.
The EV transition continues at pace, with new electric car registrations increasing by 76% in 2021 compared to 2020, and sales of used pure electric cars reaching a record high. The success of this transition in normalising EVs on our roads means that it’s right to begin to bring electric vehicles into the motoring tax system, ensuring that all motorists start to pay a fairer tax contribution.
Leveraging VED on EVs is not expected to significantly impact purchasing decisions. The government remains committed to its net zero objectives and will continue to offer a range of incentives to encourage the uptake of EVs.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing the rate of Value Added Tax on sunscreen, sunblock and other sun safety products.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The standard rate of VAT applies to the vast majority of goods and services, including sun safety products.
High-factor sunscreen is on the NHS prescription list for certain conditions and is therefore VAT free when dispensed by a pharmacist.
One of our reservations is that there is no guarantee any wider reduction in tax would be passed on to consumers, so while we keep all taxes under review, we have no plans to make changes.
Asked by: Amy Callaghan (Scottish National Party - East Dunbartonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason high factor sunscreen products currently incur VAT.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government keeps all taxes under constant review.
Under the current VAT rules, sun protection products are subject to the standard rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions and therefore is provided VAT free when dispensed by a pharmacist.
More widely, the Government’s approach to this matter is to support safety campaigns that ensure that sunscreen is placed within its proper context; as one of the precautions that people can take against the harmful rays of the sun, but one that does not provide 100 per cent protection. Advice from leading cancer charities recommends a range of steps people can take for protection, which includes avoiding long periods of exposure, staying in the shade at peak hours, and protecting themselves with a hat and sunglasses.