Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that illicit cigarettes do not make their way into the UK.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HM Revenue and Customs (HMRC) and Border Force have a comprehensive joint strategy, Tackling illicit tobacco: From leaf to light, to tackle illicit cigarettes. This has been highly effective in reducing the illicit cigarette trade from 22% in 2000-01 to 9% in 2020-21. Between 2015-16 and 2020-21, HMRC and Border Force have seized around 7.8 billion cigarettes destined for the UK. The UK is also a signatory to the World Health Organization Framework Convention on Tobacco Control and works with overseas partners to tackle the supply of illicit cigarettes upstream.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce regulation on (a) cryptocurrencies and (b) other decentralised financial assets in the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people can use new technologies both reliably and safely.
The Government has already taken forward a series of regulatory measures to protect consumers, manage market integrity risks and support innovation. Since 2020 the FCA has been the anti-money laundering supervisor for cryptoasset firms. In January 2022 the Government confirmed the intention to bring certain cryptoassets into the scope of the Financial Promotion Order to ensure that cryptoasset promotions are fair, clear, and not misleading.
On April 4 the Government published its response to its 2021 consultation on the UK’s regulatory approach to stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. The legislation to bring stablecoins, where used as a means of payment, within the regulatory perimeter is expected to be part of the forthcoming Financial Services and Markets Bill announced in the Queen’s Speech on 10 May. The Bill will be introduced later in the session when parliamentary time allows.
Further, the Government considers that some cryptoassets may already fall within the relevant UK legal frameworks. However, this also depends on the structure of the token and nature of the activities concerned.
At Fintech Week 2022, the Government announced its commitment to consult on a world-leading regime for a broader set of cryptoasset activities this year.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to ensure that small pubs, bars, and restaurants are not required to close as a result of rising utility bills.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government recognises that a number of businesses are facing cost pressures driven by global factors, including high energy and commodity prices and supply chain disruption.
Unfortunately, it is not possible to fully shield everyone from the global challenges we face. Unlike households, businesses can absorb or pass on some of these costs. The government’s immediate priority is taking action that will support families to navigate the months ahead.
Over the past two years, government has taken unprecedented action to protect millions of businesses. We have also brought forward a number of measures to support businesses this year including:
We are in regular contact with business groups about the challenges businesses are facing and we will continue to keep the situation under review.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has to provide further support to the victims of the Equitable Life scandal.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Equitable Life Payment Scheme closed to claims in 2015. There are no plans to reopen the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce HMRC's backlog of travel expense repayments.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
HMRC make payments for two types of travel expense payments.
Travel and Subsistence claims, which are costs incurred buying food, drink, and parking, are claimed via HMRC’s Online HR system and payments for these expenses are currently up to date.
Moves Adjustment Payments are made when employees incur costs when HMRC have asked them to move permanently and work from another location. Reimbursement is provided as there are additional costs because of this move.
HR policy has recently changed for these types of expenses which has led to an increase in enquiries and claims.
To mitigate the backlog, HMRC has updated their HR Guidance to make it easier for people to understand what they are entitled to. This will avoid questions being raised with HR before a formal claim is made. A new calculator and a Help Card have also been introduced to provide staff with additional support.
Increased resource has also been deployed to clear the backlog. Initially all claims were being checked; this reduced to 30 per cent on 8 March and plans are in place for this to drop to 20 per cent once assurance levels are reached.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to provide additional financial support for the pub and brewery sector; and whether he has made a recent assessment of the potential merits of reducing (a) business rates and (b) VAT for those sectors.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government is committed to supporting the pub and brewery sector.
As announced at Autumn Budget, the duty rates on alcohol, including beer, will be frozen for another year. This is expected to save consumers £3 billion over the next six years and will save beer drinkers £900 million. Beer duty rates are now at their lowest level in real terms since the 1990s.
The Government also announced on 1 October 2021 a new reduced rate of 12.5% would apply to eligible goods and services in the tourism and hospitality sector, to ease affected businesses back to the standard rate. This new rate will end on 31 March 2022. While the Government is sympathetic to recovering businesses, this relief has cost over £8 billion. It is appropriate that temporary tax reliefs are first reduced and then removed in order to rebuild and strengthen the public finances.
On business rates, the Government is providing a new temporary relief worth almost £1.7 billion for eligible retail, hospitality and leisure businesses, resulting in over 90% of retail, hospitality and leisure businesses receiving at least a 50% reduction in their business rates bills in 2022-23. The Government has also announced the multiplier will be frozen in 2022-23, a tax cut worth £4.6 billion over the next 5 years.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to support people who are self-employed during the next stages of the covid-19 outbreak.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
We recognise the impact Omicron and Government guidance is having on businesses and individuals, including the self-employed, which is why on 21 December 2021 we announced £1 billion of new grant support for the hospitality, leisure, and cultural sectors, and reintroduced the Statutory Sick Pay Rebate Scheme. This is on top of the existing package of support, in place through to Spring 2022, which includes the Recovery Loan Scheme, business rates relief, VAT reduction, and the ongoing commercial rent moratorium.
The effectiveness of our £400 billion package of interventions since the start of the pandemic, and the strength of the recovery that we have seen from previous waves means the economy is in a different place now. Employee numbers are above February 2020 levels in every part of the country and grew consistently through last year. So, it is right that our economic response in the face of Omicron adapts too and that our support is better targeted at the businesses that need it the most, providing better value for taxpayers and helping the economy to bounce back more quickly.
Throughout the pandemic, the Government has a strong track record of responding quickly, flexibly, and comprehensively in supporting jobs, businesses, individuals, and families when needed. We will continue to respond proportionately to the changing path of the virus.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that people have access to banking services.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The way consumers and businesses interact with their banking continues to change, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital payments and banking. However, the Government also recognises that physical access to banking continues to play an important role in many people’s lives.
Decisions on opening and closing branches are a commercial issue for banks and building societies and the Government does not intervene in these decisions. However, the Government firmly believes that the impact of branch closures should be understood, considered and mitigated where possible so that all customers and businesses continue to have access to banking services.
In May 2017, the largest banks and building societies signed up to the Access to Banking Standard which commits them to ensure customers are well informed about branch closures, the bank’s reasons for closure and options for continued access to banking services. Guidance from the Financial Conduct Authority also ensures firms carefully consider the impact of branch closures on customers’ needs and consider possible alternative access arrangements.
Alternative options for access can be via telephone banking, through digital means, such as mobile or online banking, or via the Post Office. The Post Office Banking Framework allows 99% of personal banking customers and 95% of business to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure charities are not faced with additional costs from excessive bank charges.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The decisions about what products are offered and to whom remain commercial decisions for banks and building societies. Similarly, decisions concerning the pricing of products, including account charges, are also commercial decisions for these institutions. Regulating on this issue could put additional costs on lenders that could ultimately lead to higher costs for customers. Therefore, while the government recognises and values the vital role played by the charitable sector, I hope you can appreciate that it would be inappropriate for it to intervene in these decisions.
UK Finance has developed a Business Current Account (BCA) finder tool, designed to help businesses, including charities, to compare the full range of bank accounts available and find products that best suit their needs. This tool also has a useful ‘Covid Update’ feature to highlight which providers are currently open and closed to applications.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to tackle tax evasion by multinational companies.
Answered by Jesse Norman
HMRC’s role is to collect the right amount of tax due under UK law. HMRC work to make sure large businesses, like all other taxpayers, pay all the taxes due under UK law.
In line with HMRC’s published criminal investigation policy, while HMRC reserve the right to undertake criminal investigations, it is their policy to deal with fraud by use of cost-effective civil fraud investigations. This applies to multinational enterprises (MNEs) as it does to other types of organisations and taxpayers.
In order to address tax risks which particularly relate to MNEs, HM Revenue & Customs (HMRC) have over 450 employees working on international issues including transfer pricing, diverted profits tax, controlled foreign companies and cross border debt. This continuing programme of investigations into potential tax avoidance, and sometimes tax evasion, by MNEs has helped secure around £6 billion from MNEs between April 2015 when Diverted Profits Tax was introduced and March 2020.