Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will list what assessments his Department has conducted since the Government announced its extension of Childcare Vouchers that determine whether low-income families will benefit more from either Childcare Vouchers or Tax-Free Childcare.
Answered by Elizabeth Truss
Families’ access to vouchers is dependent on whether their employer offers vouchers. A low income family whose employer does not offer vouchers will receive Tax-Free Childcare and therefore be better off. For other families, the comparative level of support is not determined by income level. It is linked to a number of factors such as how many children they have, whether their employer offers vouchers, their childcare costs and the age of their children. Tax-Free Childcare is more generous for families with more childcare and higher childcare costs. However, employees currently on vouchers will be able to remain on them when the scheme closes.
The government has introduced a range of measures to support parents on all incomes. For example, in addition to Tax-Free Childcare, the government has increased help with childcare costs through Universal Credit to 85% and introduced 30 hours free childcare for 3 and 4 year olds. Parents can use the childcare calculator to understand which offer is best for them.
The government is keeping Tax-Free Childcare under review and will continue to evaluate the effects. Additionally, we are conducting a programme of research and analysis which will help us evaluate the policy. This will be published once it is complete.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has made an assessment of whether single parents in England would benefit most from either (a) childcare vouchers or (b) tax-free childcare.
Answered by Elizabeth Truss
Tax-Free Childcare is fairer for single parents as it is paid per child whereas childcare vouchers are paid per parent. About 1 million more families will be able to receive Tax-Free Childcare than currently receive vouchers. Childcare Vouchers are offered by less than 5% of employers and are not available to the self-employed, so many single parents aren’t able to receive them.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on (a) the UK financial technology sector and (b) the UK economy of the current regulatory approach to the UK cryptocurrency sector.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government published the Fintech Sector Strategy on 22 March, which sets out the action we have taken to make the UK the best place to start and grow a fintech business, including setting out the current regulatory approach, and what else we plan to do to maintain this position. This strategy also looked at the impact of the Fintech sector on the UK economy.
As part of the Fintech Sector Strategy, the Government established a Cryptoassets Taskforce, consisting of HM Treasury, the Bank of England, and the Financial Conduct Authority. This Taskforce is exploring the impact of cryptoassets, the potential benefits and challenges of the application of distributed ledger technology in financial services, and assessing what, if any, regulation is required in response. The Taskforce will report back by the end of summer.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has made an assessment of the policy of (a) Gibraltar, (b) Switzerland and (c) Malta on cryptocurrencies; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government has established a Cryptoassets Taskforce, consisting of HM Treasury, the Bank of England, and the Financial Conduct Authority. It is exploring the impact of cryptoassets, the potential benefits and challenges of the application of distributed ledger technology in financial services, and assessing what, if any, regulation is required in response. The Taskforce will report back by the end of summer.
As part of this work, officials will be looking further at international approaches and working closely with our international counterparts, for example through the OECD and G20.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the financial loss to the public purse of the sale of RBS shares on 4 June 2018.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government’s shareholding in the Royal Bank of Scotland (RBS) is managed at arm's length and on a commercial basis through UK Government Investments Ltd (UKGI), a company which is wholly owned by the government, with the objective of creating and protecting value for the taxpayer.
On 5 June 2018, the Government concluded a second sale of its shareholding in RBS, restarting the phased return of the bank to full private ownership. The Government sold approximately 7.7% of the bank (925m shares) through an overnight accelerated bookbuild (ABB) process, raising just over £2.5bn for the taxpayer (at a price of 271p per share). This reduced the government shareholding to 62.4% (from 70.1% pre-sale).
The Government should not be in the business of owning banks. The original intervention in RBS was undertaken to protect the financial stability of the UK economy, not to make a profit. With that objective achieved, the Government is delivering on its intention to return the shareholding to private ownership when market conditions allow and it represents value for money to do so. The proceeds of this sale will go towards reducing our national debt.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 11 May 2018 to Question 143143, on Local Government Finance whether his Department defines Somerset County Council as being at risk.
Answered by Elizabeth Truss
The Ministry for Housing, Communities and Local Government is responsible for assessing the risks and challenges faced by local authorities.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many investigations HMRC is undertaking into corporate bodies, in relation to offences under (a) section 327-329 and (b) section 330 of the Proceeds of Crime Act 2017.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC cannot comment on ongoing criminal investigations into individuals or businesses.
However, HMRC is committed to tackling money laundering, including the abuse of corporate entities, and investigates companies where money laundering can be attributed to individuals who are directing minds of the company.
HMRC also investigates individuals who are officers of companies but are prosecuted for their personal behaviours rather than that of the company. HMRC’s records do not categorise whether investigations and subsequent convictions are in respect of the individual working as an officer for the company or in relation to their personal activity.
In the last three years, HMRC has achieved 101 convictions for POCA money laundering and Money Laundering Regulation offences.
HMRC received investment at Autumn Budget 2017 to increase its capability and target the facilitators of tax crime and money laundering, including enforcing provisions in the Criminal Finances Act 2017, which will deliver an additional £700m by 2023.
HMRC has a strong track record of tackling those who have evaded their responsibilities or those who have facilitated tax evasion and is successful in over 90% of prosecutions.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many prosecutions HMRC have initiated as a result of breaches of the (a) Proceeds of Crime Act 2017 and (b) Money Laundering Regulations 2007 and 2017 by Trust and Company Service providers.
Answered by Mel Stride - Secretary of State for Work and Pensions
In 2017/18 HMRC secured 46 Positive Charging Decisions against individuals for POCA money laundering or regulatory offences from the relevant prosecution authorities. Of these 46, three were individuals associated with Trust and Company Service Providers, seven were individuals associated with other regulated business and the remaining 36 were individuals where the money laundering was part of wider criminality.
This reflects HMRC’s multi-faceted role in identifying and tackling money laundering, including abuses of businesses it supervises under the Money Laundering Regulations.
Prosecution is but one option available to HMRC, and as part of its wider remit, also focuses on supervisory interventions to ensure businesses are complying with their obligations.
The actions HMRC takes to discharge those supervisory responsibilities and it wider role in tackling financial crime, are described in a recent publication ‘Report on Tackling Financial Crime in the Supervised Sectors 2015-2017’
HMRC has a strong track record of tackling those who have evaded their responsibilities or those who have facilitated tax evasion and is successful in over 90% of prosecutions.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what implications there are for his policy of the report Care workers, challenges of the tax and benefits system, published on 2 May 2018 by the Low Incomes Tax Reform Group; and whether his Department has made an assessment of potential risks of care workers being paid less than the minimum wage.
Answered by Elizabeth Truss
The government keeps all tax and welfare policies under review. We continue to monitor closely the social care workforce and the experience of care workers, and have committed to publishing a joint health and workforce strategy that will define ways to further support our much-valued care workforce. We remain fully committed to strong enforcement of National Minimum and Living Wage (NMW) rates for all workers, including those in the social care sector, in accordance with the law.
Asked by: Catherine McKinnell (Labour - Newcastle upon Tyne North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has made an assessment of the potential effect on consumers in England of (a) recent and (b) forthcoming RBS bank branch closures.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury has not made an assessment. The decision to close a branch is a commercial issue for the management team of the bank. However, Government believes it is important the impact on communities must be understood, considered and mitigated where possible.
The Government supports the industry’s Access to Banking Standard which commits banks to ensure personal and business customers are better informed about branch closures and the reasons for them closing. It also helps customers to understand the options they have locally to continue to access banking services, including specialist assistance for customers who need more help. The Access to Banking Standard is monitored and enforced by the independent Lending Standards Board.
Government also considers it important that all customers, wherever they live and especially those who are vulnerable, can still access over the counter services. That is why we support the Post Office’s Banking Framework Agreement, which enables 99% of banks’ personal and 95% of banks’ business customers to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter via its network of 11,600 branches.
The Government is committed to ensuring that communities across the UK are fully aware of the important services that remain available to them at their local Post Office, even if their bank branch is closed. In March, in response to my request, the Post Office and UK Finance have committed to work together to raise public awareness of the banking services available at the Post Office for individuals and small and medium-sized enterprises.