Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has he made of the impact of changes to the entitlement to use red diesel from 1 April 2022 on the construction sector in the context of rising fuel prices.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government announced at Budget 2020 that it would be removing the entitlement to use red diesel from most sectors and has legislated for this change to be implemented from April 2022. The Government has given affected businesses a year to prepare for the changes since they were confirmed at Spring Budget 2021, and many fuel suppliers and businesses will have already taken the steps needed to prepare.
These are important long-term reforms which will ensure most businesses currently using red diesel pay the same amount of tax as ordinary motorists, which more fairly reflects the harmful emissions produced. These reforms are also designed to incentivise the development and adoption of greener alternative technologies, and improvements in the energy efficiency of vehicles and machinery.
The Government recognised that this would be a significant change for some businesses and ran a consultation to gather information from affected users on the expected impact of these tax changes and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use red diesel beyond April 2022.
Following the consultation, the Chancellor announced at Spring Budget 2021 that the Government will grant further entitlements to use red diesel after April 2022 for a limited number of users. However, having assessed the cases made by other sectors to retain their red diesel entitlement, including the construction sector, the Government did not believe that they were compelling enough to outweigh the objectives of these reforms.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to postpone the proposed changes to red diesel and rebated biofuel due to come into effect on 1 April 2022.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government announced at Budget 2020 that it would be removing the entitlement to use red diesel from most sectors and has legislated for this change to be implemented from April 2022. The Government has given affected businesses a year to prepare for the changes since they were confirmed at Spring Budget 2021, and many fuel suppliers and businesses will have already taken the steps needed to prepare.
These are important long-term reforms which will ensure most businesses currently using red diesel pay the same amount of tax as ordinary motorists, which more fairly reflects the harmful emissions produced. These reforms are also designed to incentivise the development and adoption of greener alternative technologies, and improvements in the energy efficiency of vehicles and machinery.
The Government recognised that this would be a significant change for some businesses and ran a consultation to gather information from affected users on the expected impact of these tax changes and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use red diesel beyond April 2022.
Following the consultation, the Chancellor announced at Spring Budget 2021 that the Government will grant further entitlements to use red diesel after April 2022 for a limited number of users. However, having assessed the cases made by other sectors to retain their red diesel entitlement, including the construction sector, the Government did not believe that they were compelling enough to outweigh the objectives of these reforms.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to amend the existing work taper for Working Tax Credits in line with the changes to the earnings taper on universal credit.
Answered by Simon Clarke
The changes to the Universal Credit (UC) taper rate and work allowances announced at Autumn Budget 2021 apply to UC only, and the withdrawal rate in tax credits will remain at 41 per cent.
It is possible for tax credits claimants to make a new UC claim to benefit from the changes to the taper rate and work allowances, if they wish, although the government would strongly encourage making use of an independent benefit calculator before applying, to check UC entitlement.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to remove the 40 litre and over threshold from the proposed cut to VAT on the sale beer and cider.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the proposed VAT cut on the sale beer and cider on (a) small businesses and (b) breweries which do not supply their products in containers over 40 litres in capacity.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Treasury welcomes views from industry on the qualifying criteria for the duty relief on draught beer and cider. We will discuss this further with industry groups as part of our alcohol duty review consultation process.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether trade unions organising seafarer ratings and officers will be consulted over the changes to the Tonnage Tax outlined in paragraphs 2.175 to 2.177 of the Autumn Budget and Spending Review 2021, HC 822.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Autumn Budget 2021, the Chancellor announced that the Government will introduce a package of measures to reform the UK’s Tonnage Tax regime, which will come into force from April 2022. These reforms aim to see more firms basing their headquarters in the UK, using the UK’s world-leading maritime services industry, and flying the UK flag.
The Government and industry will continue to work collaboratively on the training commitment, which supports the training of hundreds of new, skilled cadets every year. This will include engagement with stakeholders in trade unions and industry.
The Government will also review whether to include ship management within scope of the Tonnage Tax regime, and whether the existing limit that can be claimed in capital allowances by organisations leasing ships to Tonnage Tax participants remains appropriate. Relevant stakeholders will be consulted throughout this review.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential effect of the end of the Coronavirus Job Retention Scheme on the level of mortgage arrears.
Answered by John Glen
Prior to the pandemic, mortgage arrears were at historically low levels.
At the height of the pandemic, the Government worked with the Financial Conduct Authority (FCA) to oversee an unprecedented package of forbearance measures for mortgage customers, including the provision of 2.9 million mortgage payment holidays and a ban on repossessions.
The Coronavirus Job Retention Scheme (CJRS) was also set up to support employers to retain their employees through the Covid-19 pandemic. To date, the scheme has succeeded in supporting 11.6 million jobs across the UK with employer claims totalling £68.5 billion, aiding businesses and protecting livelihoods.
While these measures have ended or are coming to a close, the Government will continue its efforts to support mortgage borrowers. For example, the Government will continue to offer Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit to help prevent repossession. The Government also aims to help people avoid repossession through protection in the courts under the Mortgage Pre-Action Protocol which makes it clear that repossession must always be the last resort for lenders. In addition, FCA guidance requires firms to continue providing support through tailored forbearance options, including further payment holidays, for borrowers facing ongoing financial difficulties as a result of Covid-19. Any borrowers worried about their mortgage payments should make early contact with their lender to discuss their options.
Bank of England data published on 14 September 2021 shows that arrears levels remain low, with the proportion of total loan balances with arrears at 0.89%.