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 extend the reduced VAT rate for hospitality until 31 December 2021.
Answered by Jesse Norman
In order to support the cash flow and viability of around 150,000 businesses and to protect over 2.4 million jobs, the Government has applied a temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors, which will now end on 30 September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent will be introduced for these goods and services to help affected businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.
The Government has been clear that the reduced rate of VAT is a temporary measure. It is right that, as restrictions are lifted and demand for goods and services in the tourism and hospitality sectors increases, this relief is reduced and eventually removed in order to rebuild and strengthen the public finances. This policy will cost the Exchequer over £7 billion and, while the Government keeps all taxes under review, there are no plans to make the reduced rate of VAT permanent.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many households in Northern Ireland have been affected by the loss of the child element of child tax credit and universal credit for a third or later child born on or after 6 April 2017 as a result of not meeting any listed exceptions; and how much money those affected households have not been entitled to as a result of the social security changes that took place on 6 April 2017 for the tax year 2019-20.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government has committed to annual statistics releases related to the operation of the policy to provide support for a maximum of two children. Statistics related to the period up to April 2020 were published in July 2020 and can be accessed at Child Tax Credit and Universal Credit claimants: statistics related to the policy to provide support for a maximum of 2 children, April 2020 - GOV.UK (www.gov.uk).
Table 5 shows that 5,540 families receiving Child Tax Credit in Northern Ireland were affected by the policy to provide support for a maximum of two children born on or after 6 April 2017. A further 230 families in Northern Ireland continued to receive support due to an exception.
The Department of Work and Pensions (DWP) administers Universal Credit (UC) for Great Britain and therefore does not hold data relating to Northern Ireland. UC in Northern Ireland is a matter for the Social Security Agency.
An estimate of the total entitlement foregone as a result of the changes on 6 April 2017 is not available for 2019-20 until tax credits finalised awards data for that year have been processed, which is expected to be completed by summer 2021.
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 effect on families of the two-child limit on Child Tax Credit in Northern Ireland.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government has committed to annual statistics releases related to the operation of the policy to provide support for a maximum of two children. Statistics related to the period up to April 2020 were published in July 2020 and can be accessed at Child Tax Credit and Universal Credit claimants: statistics related to the policy to provide support for a maximum of 2 children, April 2020 - GOV.UK (www.gov.uk).
Table 5 shows that 5,540 families receiving Child Tax Credit in Northern Ireland were affected by the policy to provide support for a maximum of two children born on or after 6 April 2017. A further 230 families in Northern Ireland continued to receive support due to an exception.
The Department of Work and Pensions (DWP) administers Universal Credit (UC) for Great Britain and therefore does not hold data relating to Northern Ireland. UC in Northern Ireland is a matter for the Social Security Agency.
An estimate of the total entitlement foregone as a result of the changes on 6 April 2017 is not available for 2019-20 until tax credits finalised awards data for that year have been processed, which is expected to be completed by summer 2021.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many households in Northern Ireland have been affected by the ending of the family element of child tax credit as a result of having no children on their claim who were born before 6 April 2017; and what estimate he has made of the amount of money to which those households have not been entitled for the tax year 2019-20.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
I refer the honourable member to my reply of 14 September 2020 (question 87710).
An estimate of the total entitlement foregone as a result of the changes on 6 April 2017 is not available for 2019-20 until tax credits finalised awards data for that year have been processed, which is expected to be completed by summer 2021.
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 High Income Child Benefit Tax Charge to remove the disparity between a household with two individual incomes of £49,000 that receives full child benefit entitlement and a single parent household income of £50,000 that is required to pay the High Income Child Benefit Tax Charge.
Answered by Jesse Norman
The Government introduced the High Income Child Benefit Charge (HICBC) from January 2013 to ensure that support for families is targeted at those who need it most. The tax charge applies to anyone with an individual income over £50,000 who claims Child Benefit, or whose partner claims it.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. Basing HICBC on household incomes would mean finding out the incomes of everyone in each of the 7.8 million households currently registered for Child Benefit. This would effectively introduce a new means test, which would be costly to administer and create burdens on the majority of families who receive Child Benefit.
The Government has no current plans to review HICBC but as with all elements of tax policy, keeps this under review as part of the annual Budget process.
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 include ice cream products sold for takeaway consumption in the temporary VAT reduction for the hospitality sector.
Answered by Jesse Norman
The temporary reduced rate of VAT (5 per cent) 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.
Ice cream served for consumption on the premises in ice cream parlours or other food establishments will benefit from the reduced rate.
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.
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 include ice cream products sold in ice cream parlours in the temporary VAT reduction for the hospitality sector.
Answered by Jesse Norman
The temporary reduced rate of VAT (5 per cent) 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. Ice cream served for consumption on the premises in ice cream parlours or other food establishments will benefit from the reduced rate.
The reduced rate has been extended until 30 September 2021, after which a reduced rate of 12.5 per cent will apply for a further six months, until 31 March 2022.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether there will be a Barnett consequential for the Northern Ireland devolved government as a result of the announcement of 10 February 2021 of £5 million funding for the removal of unsafe cladding.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Housing Secretary announced £3.5 billion on 10 February 2021 as part of a £5 billion multi-year investment in building safety in England.
The Barnett formula is applied to changes in departmental funding so will apply to changes in funding related to this announcement. The level of Barnett consequentials to the Northern Ireland Executive will be confirmed at future fiscal events and spending reviews when the overall level of funding for MHCLG is set.
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 allocate funds to the devolved Governments equivalent to the £51.3 billion package for councils in England announced by the Minister of Housing, Communities & Local Government, on 10 February 2021.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
At Spending Review 2020, the core spending power for Local Government increased from £49.0 billion to £51.3 billion in 2021-22. The Barnett formula was applied to changes in departmental funding as set out in the Statement of Funding Policy so additional funding for the Ministry of Housing, Communities and Local Government has already generated additional funding for the devolved administrations as part of their own 2021-22 settlements.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the amount of eligible gift aid on charitable donations that is unclaimed each year.
Answered by Kemi Badenoch - President of the Board of Trade
HMRC has not undertaken recent analysis on this subject and this would only be available at disproportionate cost.
Research conducted for HMRC in 2015/16 found that 25% of the value of donations did not have Gift Aid added to them where the donor was eligible, contributing up to £0.56bn to the value of unclaimed Gift Aid. The full report is available on GOV.UK at:
https://www.gov.uk/government/publications/charitable-giving-and-gift-aid-research