Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of (a) raising the VAT threshold and (b) implementing a smoothing mechanism to reduce tax and administrative barriers to opening outside peak season for businesses in communities reliant on tourism.
Answered by Lucy Frazer
The Government recognises that accounting for VAT can be a burden on small businesses. This is why we maintain the highest VAT registration threshold in the OECD, and when compared to EU Member States, at £85,000. This keeps the majority of UK businesses out of VAT altogether.
Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. While some businesses have argued that a higher threshold would reduce administrative and financial burdens, others contend that a lower threshold would provide a fairer competitive environment.
Whilst the Government keeps all taxes under review, we announced at Budget 2021 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2024.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact of the proposed alcohol duty system on (a) alcohol consumption, (b) alcohol-related hospitalisations, (c) alcohol-related deaths and (d) other health outcomes.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government intends to move to a new system that taxes all products in reference to their alcohol content for the first time. This will help to target problem drinking by taxing higher-strength products associated with alcohol-related harm a higher rate of duty.
We are also introducing a reduced rate of duty on low strength drinks below 3.5% ABV to support innovation and responsible drinking. This will encourage manufacturers to develop new products at lower ABVs, giving consumers more options to drink responsibly.
Further detail about the impact of our alcohol duty reforms on public health will be included in a tax information and impact note when the policy is final, or near final, in the usual way.Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support the haulage industry in response to high fuel prices.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
In response to fuel prices reaching their highest ever levels, the government announced at Spring Statement 2022 a temporary 12-month cut to duty on petrol and diesel of 5p per litre.
This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to review the help-to-buy ISA threshold in the context of rising house prices, particularly in tourist destinations such as Cornwall.
Answered by John Glen
The Help to Buy: ISA scheme aims to help those struggling to save enough to get onto the housing ladder. The property price cap of £250,000 for those properties outside London (£450,000 within London) therefore allows the Government to target support at the people the scheme is intended to help.
The latest statistics show that since the scheme was launched in 2015, 460,567 property completions have been supported through the scheme with a mean property value of £175,680, compared to an average first-time buyer house price of £228,627. The Government keeps all aspects of savings policy under review.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of the £200 energy bill credit on people who object to being placed in debt.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.
This will help people with the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households.
The energy bill reduction is not a loan – there is no interest due on it, no debt attached to it, and it will not affect your credit rating.
Asked by: Derek Thomas (Conservative - St Ives)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has taken steps to ensure that people can opt out of the £200 energy bill credit.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.
This will help people with the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households.
The energy bill reduction is not a loan – there is no interest due on it, no debt attached to it, and it will not affect your credit rating.