Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the 2023 changes to VAT on gym memberships on independent gyms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In 2023, the courts decided that sports and leisure services supplied by local authorities are non-business activities and are not subject to VAT.
There was no change in the VAT treatment of gym membership. However, before the change was implemented for local authority services, HMRC analysed in detail the relevant economic circumstances of the sports and leisure sector, and the conclusion was that removing the requirement to charge VAT on local authority sports and leisure activities would not significantly distort competition in the sector, partly because the sector was already subject to significant structural variations for reasons not confined to tax or VAT.
Following the 2023 change, HMRC held a series of positive meetings with stakeholders from the sector to address any concerns or questions that they had about the change.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of (a) the Energy Profits Levy and (b) other carbon-related taxes in preventing climate related damage.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Energy Profits Levy (EPL) was introduced as a temporary additional surcharge on profits generated from oil and gas exploration and production activities in the UK, in response to extraordinary global circumstances. The EPL has already raised over £11bn since its introduction to date. From 1 November 2024 the government introduced changes to the EPL, including increasing the rate by 3 percentage points to 38% and extending it to 31 March 2030. We also removed the EPL’s core investment allowance, which was unique to oil and gas and not available to any other sector, and retained the decarbonisation allowance in the EPL regime to support the sector to decarbonise.
The Government sees the tax system as one important lever to further environmental and climate objectives by encouraging behaviour change and supporting greater investment in cleaner technologies. The government ensures the tax system supports climate goals through measures such as the Carbon Price Support and Climate Change Levy.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with LINK on widening the criteria for establishing additional banking hubs.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
While the Government engages with LINK on a range of issues, decisions regarding changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector.
The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 180 are already open.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with Cabinet colleagues on managing seized cryptocurrency assets as long-term strategic holdings rather than liquidating them.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
As per responses from my predecessor, the Proceeds of Crime Act provides a clear process for the management and realisation of seized assets, while the UK's official reserves are governed by established investment principles. There are currently no plans to amend either framework or to commission a review into the potential role of Bitcoin and other digital assets as reserve assets or in a wider financial strategy.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will commission a review into the role of (a) Bitcoin and (b) other digital assets (i) as a reserve asset and (ii) in other future financial strategy.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
As per responses from my predecessor, the Proceeds of Crime Act provides a clear process for the management and realisation of seized assets, while the UK's official reserves are governed by established investment principles. There are currently no plans to amend either framework or to commission a review into the potential role of Bitcoin and other digital assets as reserve assets or in a wider financial strategy.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential long-term fiscal merits of retaining the Bitcoins held by UK authorities in connection with investment fraud.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Under the Proceeds of Crime Act 2002 (POCA), which sets out the necessary steps for the management and realisation of assets, the seizure, recovery and management of Bitcoin assets is subject to consideration of independent law enforcement and the courts.
There are no current plans to amend the Act to divert seized coins to a centrally-held fund or reserve.
I am unable to comment on any ongoing civil recovery investigations.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of amending the rules for the childcare vouchers scheme to allow participants to receive refunds, subject to the appropriate tax and National Insurance contributions, in instances where (a) exceptional and (b) unforeseen changes in circumstances have resulted in unused balances that can no longer be spent on eligible childcare, in the context of the covid-19 pandemic.
Answered by James Murray - Chief Secretary to the Treasury
We appreciate the temporary closure of childcare settings during the COVID-19 pandemic may have left parents unable to use some existing Government childcare offers, including Childcare Vouchers.Parents can seek to get a refund from their employer for their unused Childcare Vouchers. Whether particular employers offer refunds will depend on the contract between the Voucher provider, employee and employer, and is not within HMRC's control. Where a refund is not available the funds will remain in the nominated childcare account. As the Childcare Vouchers offer is now closed to new entrants and has been replaced by Tax-Free Childcare, the Government has no plans for reform.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has conducted a risk or opportunity assessment of the potential strategic use of seized Bitcoin assets as part of the UK's financial reserves.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Under the Proceeds of Crime Act, which sets out necessary steps for the management and realisation of assets, the seizure, recovery and management of Bitcoin assets is subject to consideration of independent law enforcement and the courts.
There are no currently plans to amend the Act to divert seized coins to a centrally held fund or reserve.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of bank branch closures on older people’s access to cash.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.
The Financial Conduct Authority (FCA) assumed regulatory responsibility for access to cash in September 2024. Its rules ensure cash continues to be a viable method of payment for the millions of people who depend on it and requires the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts.
The Government is also working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs will provide small businesses and individuals with critical access to cash. Over 180 Banking Hubs are already open across the UK.
The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.
While branch closures are commercial decisions for banks, the Financial Conduct Authority (FCA) guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers fairly.
Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment to LINK, the industry appointed coordinating body responsible for carrying out assessments. Further information about submitting a cash access request can be found on LINK’s website.
Asked by: Gregory Stafford (Conservative - Farnham and Bordon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the UK classifies mastectomy bras under Chapter 6212 of the Harmonised System Nomenclature; and whether she has made an assessment of the potential implications for her policies of the classification approach of the EU.
Answered by James Murray - Chief Secretary to the Treasury
The UK’s tariff schedule, known as the UK Global Tariff (UKGT), adheres to global classification standards. The UK classification of mastectomy bras follows the harmonised commodity description system, which was developed by the World Customs Organisation (WCO). Following EU exit, the UK continues to follow the WCO classification, implemented under the TCTA.
We continue to monitor the UKGT to ensure our Most Favoured Nation tariff schedule functions as effectively as possible, supports domestic priorities, and provides a stable operating environment for businesses.
Businesses are able to request the partial or full liberalisation of the import duty applied to the products under this commodity code, including mastectomy bras either through the online feedback form or the next business suspensions window.