Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will extend the (a) reduced VAT rate of 5 per cent and (b) business rates relief to the wedding industry.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of about 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors.
This relief comes at a significant cost to the Exchequer, and there are no plans to extend the scope of the reduced rate. This policy will cost over £7 billion, and while some businesses in some sectors are disappointed, a boundary for eligibility had to be drawn.
Due to the direct adverse effects of COVID-19, the Government has extended the unprecedented business rates holiday for eligible retail, hospitality and leisure properties for three months, and will provide up to 66% relief for the rest of 2021-22 financial year. The Government has also frozen the business rates multiplier for all businesses for 2021-22.
The Government has made available a wider package of support worth billions which includes extensions to the furlough scheme; extensions to the COVID-19 loan schemes; grant support; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT deferrals.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the availability of insurance cover for the weddings industry during the covid-19 outbreak.
Answered by John Glen
The Government is in continual dialogue with the insurance sector regarding its response to this unprecedented situation, and is encouraging insurers to do all they can to support customers during this difficult period.
Insurers take commercial decisions regarding the products they offer and risks they cover based on their view of the likelihood of a risk occurring, and have cited the likelihood of COVID-19 risk crystallising as a challenge to insure. Different insurers may take a different view, therefore customers in the wedding sector are encouraged to shop around to seek the most suitable cover at the best price.
The Government is committed to ensuring consumers have access to a range of financial products that suit their needs and is keeping this situation under review.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) practitioners in personal care services and (b) other self-employed workers in different occupations that are unable to access the Self-Employment Income Support Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government recognises the impact that the pandemic is having on businesses and individuals across the country. That is why it has provided £280 billion of support to safeguard jobs and to protect the economy. As part of those efforts the Self-Employment Income Support Scheme (SEISS) has been successful in providing £13.7 billion of support to the self-employed. People who are ineligible for the SEISS, including practitioners in personal care services and affected business owners in the sector, may be eligible for the wide range of other support schemes available including the Coronavirus Job Retention Scheme, Government-backed loans (such as Bounce Back Loans), VAT deferrals, business grants, the £20 per week uplift in Universal Credit, and Local Authority Hardship Funds to help with council tax payments.
In addition, the Devolved Administrations have been provided with £16.8 billion of funding to allow them to design their own support schemes.
The Government estimates that 1,668,000 individuals may be ineligible for the SEISS across all sectors, including personal care. These figures include individuals who have been assessed to be ineligible for the SEISS for any reason. For example, they may earn the majority of their income from PAYE employment (and so may be eligible for the Coronavirus Job Retention Scheme), or they may have average trading profits of over £50,000. Further information can be found in Table 3 in the following document: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955944/SEISS_-_Official_statistics_tables_January_2021.ods.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide financial support to (a) practitioners operating in personal care services and (b) other self-employed people that are unable to access the Self-Employment Income Support Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government recognises the impact that the pandemic is having on businesses and individuals across the country. That is why it has provided £280 billion of support to safeguard jobs and to protect the economy. As part of those efforts the Self-Employment Income Support Scheme (SEISS) has been successful in providing £13.7 billion of support to the self-employed. People who are ineligible for the SEISS, including practitioners in personal care services and affected business owners in the sector, may be eligible for the wide range of other support schemes available including the Coronavirus Job Retention Scheme, Government-backed loans (such as Bounce Back Loans), VAT deferrals, business grants, the £20 per week uplift in Universal Credit, and Local Authority Hardship Funds to help with council tax payments.
In addition, the Devolved Administrations have been provided with £16.8 billion of funding to allow them to design their own support schemes.
The Government estimates that 1,668,000 individuals may be ineligible for the SEISS across all sectors, including personal care. These figures include individuals who have been assessed to be ineligible for the SEISS for any reason. For example, they may earn the majority of their income from PAYE employment (and so may be eligible for the Coronavirus Job Retention Scheme), or they may have average trading profits of over £50,000. Further information can be found in Table 3 in the following document: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/955944/SEISS_-_Official_statistics_tables_January_2021.ods.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to maintain the fourth Self-Employment Income Support Scheme Grant at the same level as the third grant, 80 per cent of average profits, to provide support for (a) self-employed practitioners in personal care services. and (b) other self-employed workers who face reduced demand as a result of the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
I refer the Honourable Member to the answer given on 3 February 2021 to UIN 145754.Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide funding to food and drink wholesalers to account for excess stock accumulated by those businesses (a) in response to the end of the transition period and (b) as a result of hospitality and school closures during the covid-19 lockdown announced in January 2021.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Throughout the Covid-19 crisis, the Government has protected people’s jobs and livelihoods while also supporting businesses and public services across the UK. Food and drink wholesalers have been eligible for a number of economic support schemes, including:
• The Coronavirus Job Retention Scheme, which has been extended until the end of April 2021 for all parts of the UK;
• The opportunity to defer VAT payments due between 20 March and 30 June 2020; and
• The Bounce Back Loan Scheme for small businesses to borrow between £2,000 and £50,000, with no interest payments or fees for the first 12 months.
The UK-EU Trade and Cooperation Agreement ensures UK businesses can continue to buy and sell goods from EU customers without tariffs or quotas.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will grant business rates relief to food service wholesalers that are closed due to the covid-19 lockdown announced in January 2021.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has provided enhanced support to the retail, hospitality and leisure sectors through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors. Business rates are devolved in Wales, and so are a matter for the Welsh Government.
The Government has sympathy with all businesses affected by COVID-19, and has provided various schemes that can support specific firms such as wholesalers, including Coronavirus Business Interruption Loans, Bounce Back Loans, grants and VAT deferrals.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Secretary of State for Education on ensuring that agencies employing education supply staff use the Coronavirus Job Retention scheme for those staff that are unable to work.
Answered by Jesse Norman - Shadow Leader of the House of Commons
An employer can claim for any employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
This includes education supply staff who are unable to work and clinically extremely vulnerable people, where they meet these eligibility criteria.
The furloughing of staff through the CJRS is a voluntary arrangement entered at the employers’ discretion and agreed by employees. The decision whether an individual firm should put its staff on furlough, or take them off it is one for the employer, in consultation with the employee.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of providing financial support to travelling fairground operators who have been unable to operate due to covid-19 restrictions.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Government has announced unprecedented support for individuals and businesses during the pandemic. The Government has recently extended the Coronavirus Job Retention Scheme until the end of March 2021, with employees receiving 80% of their current salary for hours not worked. To support the self-employed, the percentage of trading profits covered by the forthcoming Self Employment Income Support Scheme grant from November to January have been further increased to 80 per cent, up to £7,500.
The Government has extended the temporary reduced VAT rate for hospitality and tourism to 31 March 2021. This will continue to apply to admission to attractions across the UK, including fairs, circuses and amusement parks.
Asked by: Carolyn Harris (Labour - Neath and Swansea East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the VAT reduction for the hospitality sector until March 2021 to hair, beauty, spa and wellness services.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The temporary reduced rate of VAT was introduced on 15 July in order to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.
The Government has announced a significant support package to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.