Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the decision not to provide Higher Education Institutions with additional funding support from 2024 on the financial sustainability of (a) individual Institutions and( b) the sector; if he will make it his policy to fully fund the costs to such Institutions of the Superannuation Contributions Adjusted for Past Experience discount rate; and if he will make a statement.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, the Government announced on 30 March its commitment to providing funding for employers whose employment costs are centrally funded. Higher education (HE) providers are not covered by this commitment. To not provide financial support is consistent with the decision to not fund a similar Teachers' Pension Scheme cost increase in 2019.
Nevertheless, I do recognise that while the Office for Students’ (OfS) annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department for Education and HMT recognise the importance of this issue and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Education on the costs to the higher education sector of participation in the Teachers' Pension Scheme; if he will make it his policy to work with the sector to develop financial mechanisms to help higher education institutions manage those costs in the long-term; and if he will make a statement.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
In recognition of the cost pressure a potential increase to employer contribution rates would bring to existing departmental budgets, the Government announced on 30 March its commitment to providing funding for employers whose employment costs are centrally funded. Higher education (HE) providers are not covered by this commitment. To not provide financial support is consistent with the decision to not fund a similar Teachers' Pension Scheme cost increase in 2019.
Nevertheless, I do recognise that while the Office for Students’ (OfS) annual report on financial sustainability finds that university finances generally remain in good shape, there remains a wide spread of financial performance across the sector. The Department for Education and HMT recognise the importance of this issue and will continue discussions about the implications for HE providers. The Government will confirm its position on this issue in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reasons no funding was included in the Spring Budget for the community housing sector; if he will define Community Housing Fund funding as capital funding; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government recognises the benefits of community-led housing. The sector receives support through the £11.5 billion Affordable Homes Programme (AHP) 2021-26, through which groups - or their partner organisations - registered as providers of social housing may apply for capital grants to support affordable housing. This is the largest investment in affordable housing in a decade.
This is in addition to the £227 million which was made available through the Community Housing Fund, which was launched in 2016 and comprised capital and revenue grants.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to include nuclear power in the UK Green Taxonomy; and whether he has had recent discussions with pension schemes including (a) BT and (b) NatWest on the level of their investments in nuclear power.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government’s Energy Security Strategy made clear that nuclear energy is, and will continue to be, a key part of the UK’s low-carbon energy mix alongside solar, wind and other energy sources. The Government therefore intends to include nuclear power in the UK Green Taxonomy, subject to consultation.
The development of a Taxonomy is a complex, technical exercise which is linked to multiple sectors of the economy and various legislative and regulatory framework. We have been clear that, with the support of the independent Green Technical Advisory Group and stakeholder engagement, we will take the time to get the taxonomy right to ensure it is usable and effective.
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts and-overseas-travel
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the oral contribution by the Exchequer Secretary to the Treasury during the Urgent Question on Wagner Group: Sanctions Regime on 25 January 2023, Official Report, column 1013, what recent estimate he has made of when the internal review of how sanctioned individuals seeking waivers from the Treasury to undertake court cases against journalists in the UK will report.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
HM Treasury regularly reviews its policies and processes. We need to carefully balance the right to legal representation - which is a fundamental one - with wider issues, including the aim and purpose of the sanctions. It is right therefore that Ministers are examining whether there are any changes that can be made to the licensing of legal expenses. There are currently no plans to publish a report on this matter, but we will update Parliament appropriately in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to (a) reduce duty charged on draught beer and cider served in pubs and taprooms by 20 per cent from August 2023, (b) introduce a lower business rates multiplier for hospitality businesses in recognition of their community value and (c) increase support with energy bills for beer and pub businesses from April 2023; and if he will make a statement.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
On 19 December, I announced an extension to the current alcohol duty freeze to 1 August 2023, to align any uprating decision with the implementation of the alcohol duty reforms and provide certainty to businesses. The Chancellor will confirm the alcohol duty rates from 1 August 2023 at Spring Budget.
Businesses in the retail, hospitality and leisure sectors will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business.
Through the new Energy Bills Discount Scheme, all eligible businesses will receive a discount on high energy bills until 31 March 2024. The Government provided an unprecedented package of support through this winter, and we have been clear that such levels of support were time-limited and intended as a bridge to allow businesses to adapt.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 November 2022 to Question 93499 on Energy: Taxation, what estimate he has made of the value of the tax reliefs allowed for.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Estimates of the cost of tax reliefs used by oil and gas companies under the Ring Fenced Corporation Tax (RFCT) and Petroleum Revenue Tax (PRT) regimes are published at tax relief statistics gov.uk (www.gov.uk). Future releases of these statistics will likely include estimates for first year capital allowances and the investment allowance for the new Energy Profits Levy, once outturn data is available. The estimates in these statistics do not take account of any behavioural effects that would result from removing the reliefs.Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he will publish the consultation on UK’s long-term tax treatment of the North Sea asset out in point 2.11 of the Autumn Statement 2022.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Energy Profits Levy (EPL) was introduced in May in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35%, effective from 1 January 2023. The levy has also been extended until 31 March 2028.
The Government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why, from 1 January 2023, the Government will maintain the existing cash value of the levy’s investment allowance for most types of investment expenditure, ensuring that for every £1 an oil and gas company invests, they will continue being able to claim around 91p in tax relief.
For expenditure in upstream decarbonisation, the allowance will remain at 80%, meaning for every £100 an oil and gas company invests to decarbonise oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
Since the levy is targeted at the extraordinary profits from oil and gas upstream activities, any relief for investment must also be related to oil and gas upstream activities. Therefore, tax relief is only available in relation to expenditure incurred for activity that is charged under the oil and gas ring fence corporation tax regime. For other investments, such as renewables, companies will be able to deduct investment costs from their corporation tax.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion between 2022-23 and 2027-28. This is inclusive of the impact of the investment allowance, consistent with previous revenue projections for the levy.
Oil and gas producers are commercial entities and the Government does not comment on individual taxpayers.
The Autumn Statement also confirmed the Government will engage stakeholders as part of a review to consider the UK’s long-term tax treatment of the North Sea after the Energy Profits Levy ceases in March 2028. Further details will be announced in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of investment by oil and gas companies in decarbonisation, over the period for which they will be eligible under the Energy Profits Levy for the current investment allowance rate of 80 per cent, will result in the generation of renewable power (a) for use by UK consumers via the grid, and (b) for their own production purposes.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Energy Profits Levy (EPL) was introduced in May in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35%, effective from 1 January 2023. The levy has also been extended until 31 March 2028.
The Government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why, from 1 January 2023, the Government will maintain the existing cash value of the levy’s investment allowance for most types of investment expenditure, ensuring that for every £1 an oil and gas company invests, they will continue being able to claim around 91p in tax relief.
For expenditure in upstream decarbonisation, the allowance will remain at 80%, meaning for every £100 an oil and gas company invests to decarbonise oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
Since the levy is targeted at the extraordinary profits from oil and gas upstream activities, any relief for investment must also be related to oil and gas upstream activities. Therefore, tax relief is only available in relation to expenditure incurred for activity that is charged under the oil and gas ring fence corporation tax regime. For other investments, such as renewables, companies will be able to deduct investment costs from their corporation tax.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion between 2022-23 and 2027-28. This is inclusive of the impact of the investment allowance, consistent with previous revenue projections for the levy.
Oil and gas producers are commercial entities and the Government does not comment on individual taxpayers.
The Autumn Statement also confirmed the Government will engage stakeholders as part of a review to consider the UK’s long-term tax treatment of the North Sea after the Energy Profits Levy ceases in March 2028. Further details will be announced in due course.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the amount Norwegian oil company Equinor could receive in tax relief through the Energy Profits Levy investment allowance if the Rosebank oil field development goes ahead.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Energy Profits Levy (EPL) was introduced in May in response to sharp increases in oil and gas prices over the past year. At the Autumn Statement 2022, the Chancellor announced that the rate of the levy would rise by ten percentage points to 35%, effective from 1 January 2023. The levy has also been extended until 31 March 2028.
The Government has been clear it wants to see the oil and gas sector reinvest its profits to support the economy, jobs and the UK’s energy security. That is why, from 1 January 2023, the Government will maintain the existing cash value of the levy’s investment allowance for most types of investment expenditure, ensuring that for every £1 an oil and gas company invests, they will continue being able to claim around 91p in tax relief.
For expenditure in upstream decarbonisation, the allowance will remain at 80%, meaning for every £100 an oil and gas company invests to decarbonise oil and gas production, they will be able to deduct £109.25 when calculating their levy profits. This provides an immediate and significant fiscal incentive to reinvest profits in the UK.
Since the levy is targeted at the extraordinary profits from oil and gas upstream activities, any relief for investment must also be related to oil and gas upstream activities. Therefore, tax relief is only available in relation to expenditure incurred for activity that is charged under the oil and gas ring fence corporation tax regime. For other investments, such as renewables, companies will be able to deduct investment costs from their corporation tax.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion between 2022-23 and 2027-28. This is inclusive of the impact of the investment allowance, consistent with previous revenue projections for the levy.
Oil and gas producers are commercial entities and the Government does not comment on individual taxpayers.
The Autumn Statement also confirmed the Government will engage stakeholders as part of a review to consider the UK’s long-term tax treatment of the North Sea after the Energy Profits Levy ceases in March 2028. Further details will be announced in due course.