Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what Barnett consequentials have arisen as a result of the £63 million that the Government allocated in June 2020 to be distributed by local authorities in England to help people struggling to afford food and other essentials as a result of the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
To?give?the?devolved administrations?the?upfront?certainty to plan and deliver their coronavirus response, the UK Government have guaranteed they will receive at least £14bn in additional funding this year on top of their Spring Budget?funding.
The Barnett consequentials associated with the funding the UK Government allocated to English local authorities in June 2020 will contribute towards this guarantee.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on the expected number of returns to the Exchequer of the level of deferred VAT payments under the Deferral Scheme for VAT.
Answered by Jesse Norman
As part of the Government’s support for businesses during COVID-19, businesses were given the option to defer their VAT payments between 20 March and 30 June in order to manage their cash flow through the initial stages of the pandemic. Approximately 500,000 businesses deferred £30 billion in VAT. Approximately £16 billion of VAT was received into the Exchequer covering the deferral period, as some businesses continued to pay VAT as normal.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the likely combined effect on lending to UK businesses of the partial reintroduction of crown preference (secondary preferential creditor status) from 1 December 2020 and the amount of deferred VAT under the Deferral Scheme for VAT.
Answered by Jesse Norman
The recent legislative change gives HMRC second preferential creditor status for certain taxes. This change is designed to ensure that when a business enters insolvency, more of the taxes paid in good faith by its employees and customers, but held temporarily by the business, go to fund public services as intended, rather than be distributed to other creditors.
This change is not expected to have a significant impact on financial institutions, the lending market or wider economy. This measure is forecast to raise up to £220 million a year. To put this into perspective, bank lending to small and medium-sized businesses alone in 2019 was £57 billion.
This reform will have no direct impact on VAT deferral as it only applies to businesses that become insolvent. Like HMRC’s Time to Pay scheme, the VAT deferral supports businesses with their cashflow pressures, making them less likely to be insolvent.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate his Department has made of the expected additional returns to the Exchequer as a result of the introduction of secondary preferential creditor status in conjunction with the Deferral Scheme for VAT.
Answered by Jesse Norman
The recent legislative change gives HMRC second preferential creditor status for certain taxes. This change is designed to ensure that when a business enters insolvency, more of the taxes paid in good faith by its employees and customers, but held temporarily by the business, go to fund public services as intended, rather than be distributed to other creditors.
This change is not expected to have a significant impact on financial institutions, the lending market or wider economy. This measure is forecast to raise up to £220 million a year. To put this into perspective, bank lending to small and medium-sized businesses alone in 2019 was £57 billion.
This reform will have no direct impact on VAT deferral as it only applies to businesses that become insolvent. Like HMRC’s Time to Pay scheme, the VAT deferral supports businesses with their cashflow pressures, making them less likely to be insolvent.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the likely effect on business insolvencies of reintroducing secondary preferential creditor status in December 2020.
Answered by Jesse Norman
The recent legislative change gives HMRC second preferential creditor status for certain taxes. This change is designed to ensure that when a business enters insolvency, more of the taxes paid in good faith by its employees and customers, but held temporarily by the business, go to fund public services as intended, rather than be distributed to other creditors.
This change is not expected to have a significant impact on financial institutions, the lending market or wider economy. This measure is forecast to raise up to £220 million a year. To put this into perspective, bank lending to small and medium-sized businesses alone in 2019 was £57 billion.
This reform will have no direct impact on VAT deferral as it only applies to businesses that become insolvent. Like HMRC’s Time to Pay scheme, the VAT deferral supports businesses with their cashflow pressures, making them less likely to be insolvent.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he will launch the consultation on expanding the R&D tax credit to include data and cloud computing costs.
Answered by Jesse Norman
Delivering on the manifesto commitment and Spring Budget announcement, the Government published a consultation on the scope of R&D tax credit qualifying expenditures on 21 July. This consultation is open until 13 October.
The Government welcomes responses from R&D tax credit claimants and other stakeholders as it considers the case for including data and cloud computing costs as qualifying expenditures for R&D tax relief.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of the Financial Conduct Authority's powers to stop the promotion of unregulated investment schemes and scams in online advertising.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury has given the FCA strong powers to ensure that products are regulated and promoted effectively. In May last year, following the collapse of London Capital and Finance, I launched a review of the regulatory regime for the issuance of non-transferable debt securities – often known as mini-bonds. This review has also encompassed the way that these products are marketed to consumers through the financial promotions regime. The Government will be announcing the results of this review shortly.
The Government takes fraud very seriously and continues to work closely with industry to close down the vulnerabilities that fraudsters exploit and ensure members of the public have the information they need to spot a scam and stand up to fraudsters.
I recognise that issuers of fraudulent online financial promotions have no regard for the regulatory protections we have in place. I have therefore asked my officials to work with the FCA as a priority to consider how best to respond to fraudulent financial services activity online.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue (a) capital gains tax and (b) stamp duty have raised for the Exchequer (i) in total quantum terms and (ii) as a proportion of total UK revenue in each year since 1997.
Answered by Jesse Norman
The amount of receipts of (a) capital gains tax and (b) stamp duty received by HMRC (i) in total quantum terms and (ii) as a proportion of total HMRC receipts is shown in the table below for the years 1999-00 to 2018-19. Data before this date is not available in a consistent format.
£ millions |
|
|
|
|
|
|
|
Year | Total HMRC Receipts | Capital Gains Tax | Capital Gains Tax as a % of Total HMRC Receipts | Shares | Stamp Duty Land Tax | Total Stamp Taxes | Total Stamp Taxes as a % of Total HMRC Receipts |
1999-00 | 294,177 | 2,122 | 0.7% | 3,711 | 3,184 | 6,895 | 2.3% |
2000-01 | 315,638 | 3,236 | 1.0% | 4,477 | 3,684 | 8,161 | 2.6% |
2001-02 | 321,741 | 3,034 | 0.9% | 2,852 | 4,132 | 6,984 | 2.2% |
2002-03 | 324,725 | 1,596 | 0.5% | 2,538 | 5,011 | 7,549 | 2.3% |
2003-04 | 347,946 | 2,225 | 0.6% | 2,559 | 4,986 | 7,545 | 2.2% |
2004-05 | 375,801 | 2,282 | 0.6% | 2,715 | 6,251 | 8,966 | 2.4% |
2005-06 | 402,874 | 3,042 | 0.8% | 3,465 | 7,454 | 10,918 | 2.7% |
2006-07 | 428,629 | 3,830 | 0.9% | 3,757 | 9,635 | 13,392 | 3.1% |
2007-08 | 456,121 | 5,268 | 1.2% | 4,167 | 9,958 | 14,124 | 3.1% |
2008-09 | 445,531 | 7,852 | 1.8% | 3,203 | 4,796 | 7,999 | 1.8% |
2009-10 | 414,920 | 2,491 | 0.6% | 3,017 | 4,886 | 7,903 | 1.9% |
2010-11 | 453,957 | 3,601 | 0.8% | 2,971 | 5,961 | 8,932 | 2.0% |
2011-12 | 472,690 | 4,337 | 0.9% | 2,794 | 6,125 | 8,920 | 1.9% |
2012-13 | 474,267 | 3,927 | 0.8% | 2,234 | 6,907 | 9,141 | 1.9% |
2013-14 | 494,197 | 3,908 | 0.8% | 3,108 | 9,273 | 12,381 | 2.5% |
2014-15 | 515,971 | 5,559 | 1.1% | 2,926 | 10,738 | 13,664 | 2.6% |
2015-16 | 534,306 | 7,060 | 1.3% | 3,320 | 10,682 | 14,002 | 2.6% |
2016-17 | 569,394 | 8,561 | 1.5% | 3,714 | 11,766 | 15,480 | 2.7% |
2017-18 | 593,956 | 7,793 | 1.3% | 3,519 | 12,906 | 16,425 | 2.8% |
2018-19 | 622,890 | 9,242 | 1.5% | 3,620 | 11,939 | 15,558 | 2.5% |
The source for this data is published statistics on HMRC tax receipts and national insurance contributions which are available at this link: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much money from the public purse has been spent on infrastructure in each year since 2010.
Answered by Robert Jenrick
Public sector net investment is set to reach levels not sustained in 40 years. In addition, public sector gross investment, which is net investment plus depreciation, helps to show the spending element of this. These figures include both economic and social infrastructure, as well as spending on other areas classified as capital spending. The latest figures from the Office for Budget Responsibility show that total public sector gross investment was £79.6bn in 2010-11, £71.4bn in 2011-12, £75.9bn in 2012-13, £68.7bn in 2013-14, £75.6bn in 2014-15, £74.2bn in 2015-16, £79.2bn in 2016-17, £83.7bn in 2017-18 and £82.0bn in 2018-19. Public sector gross investment peaked around the financial crisis due to Government intervention to support the economy. According to the National Infrastructure Assessment carried out by the National Infrastructure Commission in 2017, spending on economic infrastructure had risen from £12.4bn in 2012-13 to £18.7bn in 2016-17.
Asked by: Bim Afolami (Conservative - Hitchin and Harpenden)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the total sum of revenue that it has generated from the gradual reductions in the rate of corporation tax since 2010.
Answered by Mel Stride - Secretary of State for Work and Pensions
Since 2010 the Government has reduced the rate of Corporation Tax from 28 per cent to 19 per cent today, and has announced a further reduction to 17 per cent from 1 April 2020.
The Exchequer costs of each rate reduction are certified by the Office for Budget Responsibility. They are published in Table 2.1 of the Budget or Autumn Statement document at announcement, and Table 2.2 of subsequent Budget documents until implementation.
Despite lowering the rate, onshore Corporation Tax revenues have increased by around 50 per cent, from £36.2 billion in 2010-11 to £54.1 billion in 2016-17, and are above their pre-crisis peak.