Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to help support businesses which are coming to the end of fixed-term loans with increases in interest rates in Northern Ireland.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
I would encourage businesses coming to the end of fixed term rates to explore UK Finance’s Business Current Account Finder tool, which was designed to help businesses compare the full range of accounts available to find products that best suit their needs – including business loans.
The Government has taken unprecedented steps to protect millions of businesses across the UK both following the outbreak of Covid-19, and more recently high energy prices. Latest measures include:
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 hold discussions with mortgage lenders on providing flexibility to people who will find it difficult to afford mortgage repayments following the recent rises in interest rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
On Friday 23 June the Chancellor met with the largest mortgage lenders, UK Finance and the Financial Conduct Authority to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from their first missed payment without their consent or unless in exceptional circumstances. Borrowers coming to the end of their deal will be able to lock in a new rate up to six months in advance of their deal coming to an end, and apply for a better rate if one becomes available.
This is in addition to the measures the Government has already taken aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
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 are on (a) fixed and (b) b) variable rate mortgages.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
There is a wide variety of data and statistics about the mortgage market in the UK available from the Bank of England (https://www.bankofengland.co.uk/statistics), the Financial Conduct Authority (https://www.fca.org.uk/data) and UK Finance (https://www.ukfinance.org.uk/data-and-research/data).
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 paragraph 9 of his Department's Guidance on decision-making for Northern Ireland Departments until an Executive is formed or for the six month period beginning with the day on which the Northern Ireland (Executive Formation etc) Act 2022 is passed (6 December), published on 19 December 2022, CP 766, for what reason an increase in Housing Benefit Annually Managed Expenditure was granted to the Department for Communities in February 2023.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK Government funds Northern Ireland Executive Annually Managed Expenditure (AME) programmes if they offer broadly similar terms to the equivalent UK Government programme.
As AME programmes are usually demand led, AME forecasts are periodically updated to ensure necessary funding is provided.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT for the hospitality sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.
VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of removing or raising the maximum monthly limit for childcare support through Universal Credit and Tax-Free Childcare in the context of his upcoming Spring Budget.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The maximum monthly limit for childcare support through Universal Credit and the similar offer in Tax-Free Childcare is in place to provide fairness in the welfare system between those receiving out of work benefits and those in work.
It is therefore right that there should be a reasonable cap on the childcare costs that a household can have reimbursed through Universal Credit in each of their monthly assessment period, as well as in Tax-Free Childcare.
As with all tax and welfare policy, we keep these amounts under constant review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of taking steps to ensure that vulnerable households receive long-term support for energy bills in the context of his upcoming Spring Budget.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
We do not comment on the Budget process ahead of fiscal events.
The government will support the most vulnerable with targeted support throughout the next year, via the substantial package of cost of living support announced at the Autumn Statement. This includes £300 cost of living payments for over eight million pensioners households, £150 for over 6 million individuals on disability benefits and £900 for over eight million households on means-tested benefits. The government also announced an additional £1bn will be provided help with the cost of household essentials, bringing total funding for this support to £2.5 billion. In England this includes an extension to the Household Support Fund in 2023/24, with the devolved administrations receiving funding through the Barnett formula. We have also uplifted benefits and the state pension in line with inflation and increased the National Living Wage.
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 report by LSE London entitled Releasing The Mortgage Prisoners, Proposed solutions and illustrative costings, Final Report, published in February 2023, whether he has made an assessment of the implications for his policies of the findings in that report.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government understands that being unable to switch your mortgage can be extremely stressful.
The Government has consistently committed to looking for practical and proportionate options where they will deliver genuine benefits for affected mortgage borrowers, and where interventions are fair to borrowers in the active market, and to taxpayers. We will consider the proposals put forward in this very recently published report carefully.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether National Insurance incentives for employers will be included in his Spring Budget 2023.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government will consider policy decisions in the upcoming Budget in the context of the wider fiscal and economic situation. All aspects of the tax system are kept 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 review the property cost cap for the Help to Buy ISA scheme.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Help to Buy: ISA scheme aims to help those who are struggling to save enough to get onto the housing ladder. Since its launch in 2015, the scheme has supported 531,507 property completions across the UK, with a mean property value of £176,828 compared with an average first-time buyer house price of £245,350.
Help to Buy: ISA account holders can transfer their funds to a Lifetime ISA without incurring any penalties. The Lifetime ISA allows first-time buyers to benefit from the Government bonus when purchasing properties up to £450,000 anywhere in the UK.
Further information on the Lifetime ISA together with a comprehensive list of other home purchase support schemes can be found on the Government’s website below:
https://www.ownyourhome.gov.uk/
The Government keeps all aspects of savings policy under review.