Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his Department's policy paper, National Infrastructure Strategy, published on 25 November 2020, when he plans to consult on the introduction of more stringent supply chain plan requirements in the Contract for Difference process.
Answered by Jesse Norman
The Department for Business, Energy and Industrial Strategy (BEIS) published a consultation on the introduction of more stringent supply chain plan requirements, including a consequence for the non-delivery of Supply Chain Plan commitments, on 24 November. This consultation will close on 18 January 2021.
BEIS intend to consult separately on the proposed Supply Chain Plan Questionnaire in early 2021.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he (a) plans to make an assessment of the effectiveness of the vehicle excise duty scheme and (b) has made an assessment of the potential merits of a scheme whereby the number of miles driven is a factor in the annual cost for the user.
Answered by Kemi Badenoch - President of the Board of Trade
The Government uses the tax system to encourage the uptake of vehicles with low carbon dioxide emissions to help meet our legally binding climate change targets. This is why zero emission cars and electric vans are liable to pay no Vehicle Excise Duty (VED), either at first registration, or subsequently. At Budget 2020, the Government published a call for evidence on VED, which considers a range of changes to VED, including how to strengthen its environmental incentives. This closed in September and the Government will announce next steps in due course.
VED is a tax on vehicle ownership and, as such, does not vary with the number of miles driven. Motorists pay fuel duty on the petrol or diesel they purchase so those who complete significant mileage will pay more in fuel duty than those who drive fewer miles.
As with all taxes, the Government keeps VED under review. The Government is committed, as the UK transitions towards the phase out of new petrol and diesel cars and vans, that revenue from motoring taxes keeps pace with this change, to ensure it can continue to fund first-class public services and infrastructure. Any changes to the tax system will be considered by the Chancellor and any further steps will be announced in due course.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 18 November 2020 to Question 91961, whether his Department plans to direct mortgage lenders to consider income received from the self employed income support scheme as earned income for the purposes of an assessment of affordability.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
As set out in the response to Question 91961, how lenders assess affordability (beyond the regulations set out by the Financial Conduct Authority) and determine lending criteria are commercial decisions which the Government does not seek to intervene in. We are clear that lenders should treat customers fairly, especially in the current context of Covid-19 and will continue to monitor the mortgage market and engage with industry on the availability of mortgage products.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department have provided any guidance to mortgage lenders on the potential merits of including SEISS payments as income for the purposes of assessing affordability of a mortgage applicant.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury is in regular conversations with mortgage lenders about market conditions. However, the decision of a lender to offer products to customers is a commercial one, in which the government does not seek to interfere.
In 2014 the FCA introduced regulations under the Mortgage Market Review which required lenders to conduct a rigorous affordability assessment for new borrowers, obtaining evidence of income and expenditure. Lenders have significant flexibility in determining how to assess the affordability and circumstances of individual customers.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 25 March 2020 to Question 31557, what steps his Department has taken to protect consumers' credit ratings being affected by the financial effects of the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Earlier this year, the Financial Conduct Authority (FCA) published guidance on what it expects mortgage and consumer credit lenders to do for customers facing temporary cashflow disruptions as a result of COVID-19. The guidance states that firms should exercise forbearance by offering the customer a payment deferral period (payment holiday) meaning the customer makes either no, or small, token payments during that period.
The guidance sets out that there should be no worsening of arrears status on a consumer’s credit file from taking out a payment holiday. This was reconfirmed in the FCA’s updated guidance and continues to be the case for any borrower taking out a payment holiday until 31 October.
It is important that lenders act responsibly when deciding whether or not to accept a credit application, to ensure that consumers are not lent to in an unaffordable way. Therefore, outside of payment holidays, the FCA expects firms to reflect repayments and arrears on the consumer’s credit file in the usual manner.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to extend the Retail, Hospitality and Leisure Grant Fund to provide additional assistance to businesses that continue to suffer significant disruption as a result of the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that this is a very challenging time for businesses in a wide variety of sectors, and that retail, hospitality and leisure properties are likely to have been particularly affected by the COVID-19 crisis due to their reliance on customer footfall. That is why the Government has provided enhanced support to these sectors in the form of a twelve-month business rates holiday for all retail, hospitality and leisure properties; and via the Retail, Hospitality and Leisure Grant Fund for properties used for these purposes which have a rateable value below £51,000.
The Government has also allocated up to an additional £617 million to Local Authorities to enable them to provide discretionary grants to businesses which have been excluded from the RHLGF and the Small Business Grant Fund because of the way they interact with the business rates system.
In addition, retail, hospitality and leisure businesses can benefit from other measures in the Government’s unprecedented package of support for business, including:
The Government continues to review the economic situation and consider what support businesses need.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to take steps to tackle employers that refuse to furlough employees who were on payroll on 19 March 2020 and have subsequently left that employment, in circumstances where those former employees have contacted their former employers for support through the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
The Government guidance makes clear that, as long as eligible for the scheme, employers can re-employ employees they made redundant or who stopped working for them on or after 19 March 2020, put them on furlough, and claim for their wages through the scheme from the date on which they furloughed them.
The Government encourages all those firms affected by coronavirus to do the right thing for their employees. The scheme will help firms keep millions of people in employment by covering most employers’ wage costs. Firms should receive their grant within 6 working days of submitting claims.
The Government is also supporting those on low incomes who need to rely on the welfare system, through a significant package of temporary measures which benefit new and existing claimants. The measures include a £20 per week increase to the Universal Credit (UC) standard allowance and Working Tax Credit basic element, and nearly £1 billion of additional support for renters through increases to the Local Housing Allowance rates for UC and Housing Benefit claimants.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Expanded Retail Discount Scheme excludes bureaux de change premises.
Answered by Jesse Norman
The Government has provided enhanced support to the retail, hospitality and leisure sectors through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors.
While financial services providers are excluded from business rates relief, a range of further measures to support all businesses, including those not eligible for the business rates holiday, has also been made available.
For example, the Government has launched the Coronavirus Job Retention Scheme to help firms continue to keep people in employment, the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank, and the deferral of VAT payments for this quarter.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the income of long term supply teaching staff employed (a) through agencies and (b) by schools, acadamies or local authorities will have their income protected under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
The Government seeks, as far as possible, to protect people’s jobs and incomes. This is an unprecedented jobs retention scheme and the Government has been working hard to set out further details on the scheme. The Coronavirus Job Retention Scheme is open to any individual who was on an employer’s PAYE payroll on 19 March 2020. Full details can be found in the guidance available at www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme and www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme, which provides answers to these questions.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to force employers to enrol in the Government scheme for the public purse to provide 80 per cent of an employee's salary if they are unable to work as a result of covid-19.
Answered by Jesse Norman
The Government will make sure it protects, as far as possible, people’s jobs and incomes. This is an unprecedented jobs retention scheme and the Government has been working hard over the last week to set out further details on the scheme. Full details can now be found in the guidance available at: http://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme.
Employers whose operations have been severely affected by coronavirus are encouraged to use the scheme instead of making staff redundant. Under the scheme, employers can put employees on temporary leave and the Government will pay them cash grants of 80% of their wages up to a cap of £2,500 per month, providing they keep the individual employed. As set out in the guidance, the scheme does cover workers on flexible or zero-hour contracts.