Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the state of the economy in respect to the environmental impact of businesses and individuals.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Since 1990 the UK has reduced our greenhouse gas emissions by 44%, while growing our economy by over 75%.
The Net Zero Strategy sets out our long-term plan to end the UK’s domestic contribution to man-made climate change by 2050. However, the government recognises that sustainable economic growth goes further than tackling climate change.
Our response to the Dasgupta Review on the Economics of Biodiversity recognises that nature sustains our economies, livelihoods and well-being, and commits to a nature positive future in which we leave the environment in a better condition than we found it. The world leading Environment Act 2021 supports this ambition.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to increase the mileage allowance permitted for volunteer activities in future tax years.
Answered by Lucy Frazer
The Government set the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens.
Organisations are not required to use the AMAPs rates. Instead, they can agree to reimburse volunteers a different amount that better reflects their volunteers’ circumstances. However, tax is charged on any payment received by volunteers which exceeds their out-of-pocket expenses.
This policy is kept under review by the Government.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to increase the rate of VAT once the rate of 12.5 per cent expires on 31 March 2022; and what assessment he has made of the impact on small and medium sized businesses in the hospitality sector of returning to a 20 per cent rate.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses, and to protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
All taxes are kept under review, but there are no plans to extend the 12.5 per cent reduced rate of VAT. This relief has previously been costed at over £7 billion, but the latest forecast means it may now cost over £8 billion. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced, and then removed, to rebuild and strengthen the public finances.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with representatives of the banking sector on (a) the availability of banking services to the third sector and (b) improving accessibility for charities to open bank accounts.
Answered by John Glen
Throughout the COVID-19 pandemic, there has been unprecedented demand for banking services, this accompanied with working restrictions due to social distancing has meant banks have faced significant capacity pressures which has limited their ability to meet demand for bank accounts, among other things.
Banks continue to work hard to meet this demand. Ultimately, the decisions about what products are offered and to whom remain commercial decisions for banks and building societies. While I recognise the important role of the third sector, I hope you can appreciate that it would be inappropriate for the Government to intervene in these decisions.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to support labour market growth.
Answered by Steve Barclay
We are helping people find new jobs by doubling the number of work coaches, and have introduced additional tailored support such as the £2bn Kickstart scheme and £2.9bn Restart programme.
The Government has provided funding to triple the number of traineeships and sector-based work academies from their pre-pandemic level, introduced expanded incentives for employers to hire apprentices, and introduced support for school leavers to take high value training courses where employment opportunities are not immediately available.
The Budget also announced £1 million to pilot a jobs-matching platform for work coaches to help people find work across sectors .
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the VAT rate for on-street electric car charging.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Electricity supplied at electric vehicle charging points in public places is subject to the standard rate of VAT (20 per cent). In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (5 per cent).
Expanding the relief would come at a very high cost. VAT makes a significant contribution towards the public finances, raising about £130 billion in 2019/20, and helps to fund public priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.