Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much additional funding was contributed to the Welsh Block grant in each financial year between 2017-23 as the result of the 5 per cent uplift arising from the December 2016 Agreement between the Welsh Government and the United Kingdom Government on the Welsh Government’s fiscal framework.
Answered by John Glen
The Block Grant Transparency publication sets out a full breakdown of funding for the Welsh Government, including the impact of the 5% uplift.
The publication is regularly updated after each UK Budget. The next update is expected before summer recess following Spring Budget 2023.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to protect access to cash in the last 12 months.
Answered by John Glen
The Government recognises that cash remains an important part of daily life for millions of people across the UK, and remains committed to legislating to protect access to cash.
As part of the Financial Services Act 2021, the Government made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses.
From 1 July to 23 September last year, the Government held the Access to Cash Consultation on further proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities.
The Government received responses to the consultation from a broad range of respondents, including individuals, businesses, and charities. The Government has carefully considered responses to the consultation and will set out next steps in due course.
Following the Government’s commitment to legislate, firms are working together through the Cash Action Group to develop new initiatives to provide shared services. The Government welcomes the direction set by industry’s commitments at the end of last year and looks forward to seeing what results they deliver in protecting cash facilities for local communities across the UK.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to extend the temporary VAT rate of 12.5 per cent for the hospitality sector beyond March 2022.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced, and then removed, to rebuild and strengthen the public finances.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of increasing the £250,000 threshold for purchase under the help to buy ISA scheme in response to rising costs in the property market.
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, 410,075 property completions have been supported through the scheme with a mean property value of £175,010 compared to an average first-time buyer house price of £220,406. The Government keeps all aspects of savings policy under review.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to support proposals to establish a global centre for secure intelligent regulatory technologies in Northern Ireland.
Answered by John Glen
The government is committed to maintaining the UK’s position a world-leading destination for fintech.
In line with this ambition, the Government is taking forward key recommendations of the independent Kalifa Review of UK Fintech as part of ensuring the UK remains at the global cutting edge of technology and innovation in financial services.
Government funding for future years will be confirmed as part of the Spending Review which will be announced on 27th October.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of inviting applications for the fourth grant of the Self-Employed Income Support Scheme earlier than mid-April 2021.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government announced at Budget 2021 that the Self-Employment Income Support Scheme (SEISS) will continue until September, with a fourth and a final fifth grant.
The Government also announced a significant change in access to the SEISS. Basing the fourth and fifth grants on 2019-20 Self Assessment tax returns means more than 600,000 people are brought into scope who either became self-employed in 2019-20; or were ineligible for previous grants, but now may be eligible for the fourth grant on the basis of submitting their 2019-20 tax return.
Using these returns requires time to deliver, due to the increased population and new data. In order to allow HM Revenue and Customs (HMRC) time to process 2019-20 tax returns it has not been possible to invite applications or open the claims service earlier.
Individuals must have submitted their 2019-20 tax return by 2 March to be considered for the SEISS. This date balances access for the vast majority of eligible self-employed individuals, with the duty to protect the taxpayer against fraud as the details of the SEISS grants became public.
HMRC will open the online claims service for the fourth SEISS grant from late April 2021 and expects to notify potentially eligible people of their personal claim date from mid-April.
The SEISS is just one part of a wider package of support for the self-employed, including Restart Grants, the Recovery Loan scheme, business rates relief, and other business support schemes.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the rate of VAT on refurbishment, repair and maintenance of buildings from 20 per cent to five per cent.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government already maintains a reduced rate of VAT at five per cent, subject to certain conditions, for residential renovations.
Introducing a zero rate of VAT would come at a significant cost to the Exchequer, estimated at about £4 billion per year, which would have to be balanced by a reduction in public spending, higher borrowing or increased taxation elsewhere. While the Government keeps all taxes under review, there are no plans to change the VAT treatment of the repair and renovation of buildings.A
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the deadline for submission of tax returns given the varying and continuing covid-19 restrictions throughout the UK.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has carefully considered the arguments for extending the Self-Assessment filing date from 31 January and has decided on balance not to do so. The January deadline has been in place for many years and changing it could undermine customer understanding and trust in how the Self-Assessment system works. However, the Government recognises that some taxpayers will have difficulty submitting their Self-Assessment return due to the impact COVID-19 has had on their personal or business circumstances.
HMRC do not charge penalties for failure to submit a return on time where taxpayers have a reasonable excuse. HMRC’s guidance explains that they will accept the impact of COVID-19 as a reasonable excuse for submitting a return late, provided that taxpayers explain how they were affected and submit the return as soon as they can. More information is available in the HMRC online guidance covering the reasonable excuse provisions.
Once they have submitted their return, taxpayers who are unable to pay all of their Self-Assessment tax due on 31 January can access HMRC’s enhanced Time to Pay arrangements. These allow liabilities of up to £30,000 – increased from £10,000 – to be paid in up to 12 instalments without having to contact HMRC beforehand.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of delaying plans to bring funeral plan providers under the remit of the Funeral Planning Authority in the context of the covid-19 outbreak.
Answered by John Glen
The government is committed to strengthening regulation of the pre-paid funeral plan sector. As part of the Budget, and following consultation, the Chancellor announced the government’s intention to legislate to bring pre-paid funeral plan firms within the remit of the Financial Conduct Authority (FCA). This will ensure that, for the first time, all firms offering pre-paid funeral plans are subject to compulsory and robust regulation.
The government intends to lay the necessary legislation very soon. Once this legislation is made, there will be an implementation period before the new regulatory framework comes fully into force. This will allow time for funeral plan providers and firms which sell plans to take the necessary steps to meet the new regulatory requirements.
Asked by: Gavin Robinson (Democratic Unionist Party - Belfast East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of applying the Stamp Duty exemption retrospectively for house sales within the agreed thresholds since the start of the (a) covid-19 lockdown and (b) current financial year.
Answered by Jesse Norman - Shadow Leader of the House of Commons
To boost the housing market and confidence, the Government has decided to cut Stamp Duty Land Tax (SDLT) by temporarily increasing the nil band rate of SDLT to £500,000. This applies from 8 July 2020 to 31 March 2021.
Property sales which have not yet been substantially performed will still be eligible to take advantage of the Stamp Duty Holiday.