Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with UK Finance on the future of the cheque; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Cheques remain an important part of the UK’s payments landscape and, whilst there has been a decline in cheque volumes, they continue to be used by many individuals, businesses, and charities. In order to secure the future of cheque usage in the UK, HM Treasury introduced legislative measures in 2015 to allow UK banks and building societies to introduce ‘cheque imaging’. Cheque image clearing allows a digital image of a cheque to be sent for clearing, rather than the paper cheque itself.
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to help ensure that (a) vulnerable people, (b) the elderly and (c) people living in rural areas continue to have access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash is important to the daily lives of millions of individuals and businesses across the UK, including those who may be in vulnerable groups, elderly or living in rural areas.
Therefore, the Government has committed to protecting access to cash for those who need it and ensuring that the UK's cash infrastructure is sustainable for the long term.
The Government made legislative changes via the Financial Services Act 2021 to support the widespread offering of cashback without a purchase, which will allow shops and other businesses to offer a new form of cash withdrawal service to local communities.
On 1 July, the Government published a consultation on broader legislative proposals to protect access to cash. These proposals seek to ensure that people only need to travel reasonable distances to pay in or take out cash, and that the right regulatory oversight for cash access is in place for the future. The consultation is available at: https://www.gov.uk/government/consultations/access-to-cash-consultation
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the removal of the right to use red diesel from April 2022 for flood risk management purposes on the cost of pumping operations by IDBs and others; what consultation he has had with those likely to be affected; and what steps the Government plans to take to ensure that future flood prevention activities are not compromised.
Answered by Kemi Badenoch - President of the Board of Trade
The changes to the tax treatment of red diesel from April 2022 are designed to incentivise greater energy efficiency and the switch to more environmentally friendly alternatives in both the public and private sectors. The Government recognises that these changes may affect some public sector bodies, including Internal Drainage Boards, and Treasury officials met representatives from the drainage, water level and flood risk management sector to discuss these tax changes. The Treasury will discuss spending pressures that may arise in the public sector as part of the next Spending Review.
The Government takes flood risk very seriously. That is why it has doubled the amount it invests in flood and coastal defences to £5.2 billion by 2027.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the extension of covid-19 restrictions beyond 21 June 2021, what steps the Government is taking to support the hospitality sector; if he will take steps to reduce the tax burden on businesses affected by that extension; and what assessment he has made of the potential effect of raising VAT from 5 per cent in September 2021 on the events and hospitality sectors.
Answered by Jesse Norman
At Budget, the Chancellor was aware of the potential for short delays in the roadmap and announced a generous extension to existing economic support. In order to provide continuity for businesses, key measures including the Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme, VAT cut extension, Business Rates Holiday, and Recovery Loan scheme do not end until September or after.
The extension to the temporary reduced rate of VAT (5 per cent) for the tourism and hospitality sector means that the relief 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 businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.
This relief has cost over £7 billion and has helped support the cash flow and viability of 150,000 businesses and protect over 2.4 million jobs. While the Government keeps all taxes under review, there are no plans to extend the reduced rate of VAT further.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce paperwork and other bureaucracy required on issues relating to rules of origin affecting companies exporting to the EU from 2022; and if he will make a statement.
Answered by Jesse Norman
The Government has been clear that leaving the Single Market and Customs Union will result in new customs processes for businesses trading with the EU. The UK has moved to a Free Trade Agreement (FTA) relationship, and Rules of Origin are a standard part of all FTAs.
The Government has secured a number of administrative facilitations, such as self-certification of origin, and, until 31 December 2021, an easement on the need for UK businesses to hold supplier declarations at the time they issue statements on origin, which will considerably reduce the administrative burdens of complying with rules of origin in trade with the EU. The easement on supplier declarations has been introduced to allow businesses time to establish the necessary arrangements to meet the requirements of the agreement.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent representations he has received in support of a reduced UK VAT rate of 5 per cent for tourism attractions and accommodation providers; and if he will make an assessment of the potential benefit to the tourism sector of that proposition in advance of his next Budget.
Answered by Jesse Norman
Raising £130 billion in 2019/2020, VAT is an important source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.
Reducing VAT on tourism and hospitality related activities would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.
In light of the COVID-19 outbreak, the Chancellor has pledged a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, what discussions he has had with banks on the potential effect on rural communities of the removal of free cash machines from high streets.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government-established Payment Systems Regulator (PSR) is closely monitoring developments in ATM provision. The PSR regulates LINK, the scheme which runs the UK’s ATM network, and has used its powers to hold LINK to account over LINK’s commitments to preserve the broad geographic spread of the ATM network.
LINK has put in place specific arrangements to protect free-to-use ATMs more than 1 kilometre away from the next nearest free-to-use ATM. LINK has also enhanced its Financial Inclusion Programme, increasing the funding available for free ATMs in the most remote rural and deprived areas of the UK.
The wider banking and finance industry is committed to helping local communities identify and secure appropriate free access to cash for customers. Regarding specific discussions, Treasury Ministers and Officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will issue guidance to local authorities on working constructively with firms participating in the Rent Recognition Challenge to help social housing tenants expand their credit performance records by enabling such firms to gain access to payment performance data; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government does not currently intend to issue guidance to local authorities on this issue. However, the Government does encourage local authorities to work constructively with firms providing rent recognition services, including those participating in the Rent Recognition Challenge.
It is right that tenants, where they choose to do so, should have the ability to ensure that their history of paying rent is recorded and recognised in their credit files.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much money has been raised by average speed cameras, installed on a temporary basis because of roadworks on motorways in England during the last 12 months for which figures are available.
Answered by Elizabeth Truss
All revenue generated from speed cameras – through fixed penalty notices issued by local police forces or speeding fines issued by the courts are transferred into the Consolidated Fund, which is regarded as central Government’s current account. Fines are considered a tax-type revenue and Government departments and their agencies are legally obliged to surrender these receipts to the Treasury. Revenue surrendered to this account is usually transferred in bulk and not ring-fenced for any specific area of government spending but will be used towards general government expenditure. This includes Supply payments to government departments which are drawn from the Consolidated Fund in line with amounts voted by Parliament to finance their net expenditure. As a result, we are unable to provide the information you have requested.
Asked by: Greg Knight (Conservative - East Yorkshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of international efforts to regulate crypto-currencies; and whether his Department has any plans to regulate crypto-currencies in the UK.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has not made a formal assessment of the regulation of cryptocurrencies in other countries, though it is aware that industry has done so (for example https://bravenewcoin.com/news/icos-and-cryptocurrencies-a-rough-guide-to-global-regulation/) and, as with all policy, continues to monitor developments.
The Government is currently negotiating amendments to the 4th Anti-Money Laundering Directive that we expect to bring virtual currency exchange platforms and custodian wallet providers into the scope of Anti-Money Laundering and Counter-Terrorist Financing regulation. This will require such firms to conduct due diligence upon their customers, with their activities being overseen by national competent authorities for these areas. The government supports the intention behind these amendments. We expect these negotiations to conclude at EU level in late 2017/early 2018.