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 (a) Health and Social Care, (b) Education and (c) Levelling Up, Housing and Communities on the levels of funding required to ensure that (i) schools, (ii) nurseries, (iii) colleges, (iv) hospitals, (v) providers of social care and (vi) other providers of essential public services are able to afford the increased cost of energy; if he will make it his policy to provide additional funding to help those public services meet their energy costs; and if he will make a statement.
Answered by Chris Philp - Minister of State (Home Office)
We recognise that many private and public sector organisations are exposed to high energy costs driven by global factors.
The Government will introduce a six-month scheme to support businesses, charities and public sector organisations, comparable to the scheme being provided for consumers.
This will protect them from soaring energy costs through the acute crisis this winter and provide them with the certainty they need to plan.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has taken any steps since the publication in 2020 of the Doubling Back and Doubling Down G20 scorecard on fossil fuel funding to improve the UK’s (a) very poor rating for progress in ending support for fossil fuels, (b) opaque rating for transparency and (c) overall ranking as joint last of OECD nations; and if he will make a statement.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The UK does not give any subsidies to fossil fuels, and follows the approach of the International Energy Agency, which defines fossil fuel subsidies as measures that reduce the effective price of fossil fuels below world market prices.
The International Energy Agency has a long-standing track record in systematically measuring fossil-fuel subsidies using a commonly applied methodology. This definition was originally developed with the European Commission and G20 EU Member States to respond to the G20 commitment to phase out such subsidies.
The government takes its environmental responsibilities seriously, and recently published the Net Zero Strategy on how the UK will deliver on its commitment to reach net zero emissions by 2050. Pricing carbon (including through tax) is one of the most efficient tools for promoting decarbonisation and already plays a key role in helping the UK achieve net zero emissions. There are also a number of taxes, including the Climate Change Levy and Vehicle Excise Duty, that are designed to encourage businesses and consumers to make greener choices.
The government keeps all taxes under review, and any changes are made in the round at fiscal events.
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 potential merits of incorporating and implementing just transition principles into plans for Sustainable Disclosure Requirements as part of the Green Finance Roadmap.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The document ‘Greening Finance: A Roadmap to Sustainable Investing’ sets out the Government’s plan to introduce coordinated Sustainability Disclosure Requirements (SDR) across the economy.
As set out in the Roadmap, the Government intends to green the financial system in phases. The first is informing investors and consumers – addressing the information gaps in the market and ensuring a flow of decision-useful information on sustainability factors from corporates to financial market participants. This is the main aim of SDR: to increase transparency for market participants to ensure they have the information they need to factor sustainability into their investment decisions.
Phase two in the Roadmap is about acting on that information. The government set out its expectation that, as this information becomes available and develops over time, the UK’s investment sector – investors, asset managers, asset owners, and the service providers that support them – will have the data to act as effective and responsible stewards of capital.
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 reduce the VAT rate for the hospitality and tourism sector to 5 per cent; and if he will make a statement.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
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 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 2021. 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 relief ended on the 31 March 2022.
The Government has been clear that the reduced rate of VAT for hospitality and tourism was 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, in order to rebuild and strengthen the public finances.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with (a) North Sea energy companies and (b) other energy companies on whether Government policy on a windfall tax is linked to levels of investment in the North Sea; and if he will place a copy of the meeting notes in the Library.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Treasury Ministers and officials have meetings with a wide variety of external stakeholders.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: HMT ministers' meetings, hospitality, gifts and overseas travel - GOV.UK (www.gov.uk)
All taxes are kept under review and any changes are considered and announced by the Chancellor.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will bring forward legislative proposals protect access to free to use cash machines; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains an important part of daily life for millions of people across the UK, and remains committed to legislating to protect access to cash.
From 1 July to 23 September last year, the Government held the Access to Cash Consultation on proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals included making the FCA the lead regulator for retail cash access. As part of this the FCA would be expected to set out reasonable access requirements for cash facilities in regulatory rules, such as the appropriateness of facilities for vulnerable users, including
considerations such as cost for end users.
The Government received responses to the consultation from a broad range of respondents, including individuals, businesses, and charities. The Government has carefully considered responses to the consultation and will set out next steps 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 for all Public Sector Net Investment (PSNI) decisions to be subject to a test to determine whether they advance the UK’s ability to meet its commitments set out in the Glasgow Climate Pact; and if he will make a statement.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Glasgow Climate Pact, agreed under the UK’s COP Presidency, aims to keep 1.5 degrees within reach. The UK is fully committed to playing our part to achieve that that goal – both through domestic action and international coordination.
Over the past few years, the Government has gone further than ever before to ensure the climate is at the heart of our decision-making, and we will continue to strengthen the application of our existing processes. The Green Book mandates the consideration of net zero impacts in spending (including resource and capital spending).
The Net Zero Strategy sets out the actions to keep us on track for UK carbon budgets, our 2030 Nationally Determined Contribution, and net zero by 2050. The spending brought forward in the Net Zero Strategy, and confirmed by the Budget and Spending Review 2021, mean that the Government will have committed a total of £30 billion of domestic investment for the green industrial revolution since March 2021. The Office for Budget Responsibility stated this to be broadly in line with the public investment required to keep on track for net zero by 2050.
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 G7 finance ministers on debt cancellation for Ukraine with specific reference to (a) International Monetary Fund debt, (b) domestic debts, (c) Eurobonds debt and (d) other debts; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Chancellor continues to engage with G7 partners and International Financial Institutions on progressing current and future support to Ukraine. This includes a G7 Finance Ministers and Central Bank Governors meeting held on 1 March with the Ukrainian Finance Minister.
Alongside our allies, we’ve hit Russia with the most severe package of sanctions it has ever seen and our economic and humanitarian support to Ukraine now totals around £400 million. This includes USD$100 million of funding to Ukraine through the World Bank Multi-Donor Trust Fund and that we stand ready to provide USD$500 million in loan guarantees to support Multilateral Development Bank lending. This support has also enabled a package to be agreed on 8 March of over $700m for direct fiscal support to Ukraine via the World Bank, to help mitigate direct economic impacts.
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 need for legislation to make holders of lower-income country sovereign debt governed by English law participate in debt restructurings, including those agreed through the G20 Common Framework.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
To deliver a long-term, sustainable approach to dealing with debt vulnerabilities, the UK, along with the G20 and the Paris Club, has agreed a new Common Framework for Debt Treatments beyond the DSSI. Private sector participation on at least as favourable terms as bilateral creditors is a fundamental principle of the Common Framework. We are fully focussed on implementing the Common Framework for those who have requested it and ensuring that the private sector plays its part in any debt treatments under the Framework.
At this stage, the government is not pursuing a legislative approach that would force private creditors to participate in debt restructurings. Any legislative approach would need to address a number of challenges, such as ensuring legislation does not reduce access to and the cost of finance for low-income countries to meet wider development goals.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether energy companies which are granted future oil and gas and licences will be eligible for tax reliefs for (a) exploration and production and (b) decommissioning costs; and what estimate his Department has made of the costs to the Exchequer of any such tax reliefs.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HMRC publish estimates for the Exchequer cost of tax reliefs in recent years. The latest estimate, published in December 2021, can be found at the following link: https://www.gov.uk/government/collections/tax-relief-statistics.
HMRC also publish an estimate of future Exchequer costs arising due to decommissioning in their Annual Report and Accounts. The most recent estimate is in the HMRC Annual Report and Accounts 2020 to 2021 and can be found here: https://www.gov.uk/government/publications/hmrc-annual-report-and-accounts-2020-to-2021. This estimate is based on a range, provided by the Oil and Gas Authority, for expected decommissioning costs for oil and gas infrastructure in the UK Continental Shelf over the remaining life of the North Sea basin.
All taxes are kept under review and any changes are considered and announced by the Chancellor.