Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the Approved Mileage Allowance Payment amounts before the Spring Budget 2023.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Approved Mileage Allowance Payments (AMAPs) are used by employers for administrative ease as a means of reimbursing an employee’s expenses for business mileage in their private vehicle.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the Energy Profits Levy in the context of profits announced by energy companies.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Energy Profits Levy was introduced in May 2022 to respond to very high prices that meant oil and gas companies are benefiting from exceptional profits. At Autumn Statement 2022, the government confirmed the rate of the levy would rise by a ten percentage points to 35%. This is on top of the 40% tax rate under the permanent regime, bringing the combined headline rate of tax for the sector to 75%, one of the highest amongst comparable North Sea regimes.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion over the next five years. Total UK oil and gas revenues over this period are forecast to be around £80 billion.
As with all taxes, this is kept under review and any changes will be considered and announced by the Chancellor.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the $9.5 billion quarter three profits reported by Shell and reported comments from that company’s CEO that it is ready for further windfall taxation, if he will make an assessment of the potential merits increasing the Energy Profits Levy.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Energy Profits Levy (EPL) was introduced from 26 May in response to sharp increases in oil and gas prices over the past year and to help fund cost of living support for UK households.
The EPL is an additional 25 per cent surcharge on UK oil and gas profits, taking the combined headline tax rate for oil and gas companies operating in the UK and on the UK Continental Shelf to 65 per cent, more than triple the rate paid by other businesses.
As with all taxes, this is kept under review. It would not be appropriate for the Government to comment on the affairs of individual taxpayers.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help support people who are unable to switch to a new fixed rate mortgage, in the context of rising interest rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Around 75% of residential mortgage borrowers are on a fixed rate, and therefore shielded from rate rises in the near term.
There remains a broad range of mortgage products on the market, and those looking to switch mortgages are encouraged to shop around and speak to a mortgage broker in order to find the best possible product for them.
Ultimately though, the pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with (a) banks and (b) other financial institutions on ensuring that people struggling with the cost of living and rising bills do not face financial penalties on overdrafts and mortgages if they default during the cost of living crisis.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Treasury Ministers meet regularly with banks and other financial institutions to discuss their general lending and retail banking practices. These financial institutions stand ready to support consumers in the current economic climate. For those struggling to keep up with their mortgage payments or pay back their overdrafts in light of the rising cost of living, it is important they make early contact with their mortgage lender or overdraft provider.
The Financial Conduct Authority (FCA) has guidance that requires firms to offer tailored forbearance options to mortgage borrowers and overdraft users that are in financial difficulty. For mortgage borrowers, this could include measures such as a payment holiday, partial payment, or an extension of mortgage term. For overdraft users, the FCA set rules for banks and building societies. These include mandating that they cannot charge more for unarranged overdrafts than arranged overdrafts, banning fixed daily and monthly charges, and measures to improve the transparency of pricing. In instances where an overdraft provider identifies that a customer has a pattern of repeat overdraft use and may see increased fees on their borrowing, the rules also require firms to develop strategies to reduce harm to customers.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that small and medium businesses in Northern Ireland are able to access immediate financial support to help meet rising costs in the absence of the Northern Ireland Executive.
Answered by Chris Philp - Minister of State (Home Office)
We recognise the challenge that businesses are facing from rising costs across the UK, including those in Northern Ireland.
We’re acting fast to provide vital support to businesses and provide the certainty they need to plan for the challenges ahead this Winter.
On Wednesday, we announced details of the Energy Bill Relief Scheme to protect businesses from the spiralling costs of energy by providing a discount on wholesale gas and electricity prices over the next six months.
- A parallel scheme, based on the same criteria and providing comparable support, but recognising the different market fundamentals, will be established in Northern Ireland
Further support is available to businesses in Northern Ireland through the Recovery Loan Scheme, a vital scheme offering government-backed loans to small businesses.
- The scheme has already supported more than 300 businesses in Northern Ireland and we recently extended it for another two years.
This builds on the support we have made available to ensure small businesses can access the finance they need throughout the UK.
- At the last Spending Review the government provided over £1.6bn additional funding to the British Business Bank to set up new national and regional funds, including £70m specifically earmarked for Northern Ireland.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has considered to help expediate support to people in Northern Ireland with meeting rising (a) energy costs, (b) food costs and (c) living expenses in the absence of the Northern Ireland Executive.
Answered by Chris Philp - Minister of State (Home Office)
The UK Government has taken decisive action to support the people of Northern Ireland with the cost of living.
The government is providing significant support to help people in Northern Ireland with rising energy costs through the Northern Ireland Energy Price Guarantee, which will offer households the equivalent level of gas and electricity bills support as the scheme for Great Britain.
Households in Northern Ireland will also benefit from the cost of living support already announced for this financial year. This includes a £400 discount on bills through the Northern Ireland Energy Bills Support Scheme, the same as that available to households in Great Britain.
The one-off Cost of Living Payments announced in May will also be delivered UK-wide, and includes £650 for those on means-tested benefits, £300 for pensioners, and £150 for those with a disability.
More broadly, our economic plan will be pro-growth. The Chancellor has today set out a package of measures to deliver on the Prime Minister’s commitment to cut taxes and boost growth. Productivity growth is the only way to deliver sustainable improvements in living standards across the United Kingdom.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to (a) support proposals to and (b) help ensure that lenders comply with a decision to cancel Zambia's debt.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Zambia is one of three countries – along with Chad and Ethiopia - to have so far requested the Common Framework. The Common Framework was agreed in November 2020 by the UK, along with the G20 and Paris Club, to help deliver a long-term, sustainable approach for supporting low-income countries to tackle their debt vulnerabilities.
Debt treatments under the Common Framework can include both the reprofiling of debt or, depending on need, a full restructuring where debt is also cancelled.
Comparability of treatment is also a fundamental principle under the Common Framework. This means that a debt treatment with other official bilateral creditors and private creditors must be agreed on at least as favourable terms as the one agreed by G20 creditors.
It is a UK priority to work with our G20 partners to ensure swift progress on Zambia’s debt treatment so that the country can get back to debt sustainability and support its economic recovery.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to extend the new draught duty rate to include kegs and casks holding 20 and 30 litres.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget, the Government set out its proposals for draught relief to provide support for pubs and other on-trade venues through the alcohol duty system.
The Government is currently considering all proposals put forward to it through the alcohol duty review consultation, which closed on 30 January, including the feedback received on qualifying criteria for draught relief. The Government will be publishing a response to the consultation in due course.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support the Government is providing to Northern Ireland businesses to help them manage increased (a) fuel prices and (b) costs arising from the UK leaving the EU.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Families and businesses in Northern Ireland, as in the rest of the UK, will benefit from the 12-month cut in fuel duty announced at Spring Statement. The main rates of petrol and diesel will be cut by 5 pence per litre. This is only the second time in 20 years that the main rates of petrol and diesel have been cut, and overall it represents the largest cash-terms cut that has ever been applied to all fuel duty rates at once.
In respect of the UK having left the EU, the UK continues to seize new opportunities as we strike trade deals with the world’s fastest growing markets. This includes the Trade and Cooperation Agreement (TCA), which will help ensure businesses continue to get the support they need to trade effectively with the EU.
The Government’s current priority is to deal with the issues in the Northern Ireland Protocol and we are committed to continuing intensive talks with the EU to resolve these.
The Government also continues to support businesses in Northern Ireland. This includes £350 million spent on the Trader Support Service (TSS), which is a free service that has been set up to support businesses to adapt to changes required under the Protocol by providing education and facilitating the completion of customs and safety and security declarations.
Additionally, in December 2020, the government announced the £400 million New Deal for Northern Ireland. This financial package is aimed at supporting businesses to operate after the Transition Period, whilst also ensuring that Northern Ireland is ready to seize the trade and investment opportunities ahead.