Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Secretary of State for Health and Social Care's Answer of 15 April 2021 to Question 179033, on Coronavirus: Gyms, whether his Department has plans to introduce incentives similar to the Eat out to help out scheme for gyms and fitness facilities.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Government recognises the significant disruption the necessary actions to combat Covid-19 are having on sectors like the fitness industry.
During this difficult time the Treasury is working intensively with employers, delivery partners, industry groups and other government departments to understand the long-term effects of social distancing across all key areas of the economy.
The Chancellor has already announced unprecedented support for individuals and businesses, to protect against the current economic emergency. By the end of March 2021, the Government made up to £20 billion available for business grants. At Budget 2021, the Government announced a further £5 billion of business grant support, including the Restart Grants Scheme, in which hospitality, accommodation, leisure, personal care and gym business premises in England will be eligible for grants up to £18,000, subject to their rateable value. The Restart Grants will replace the monthly Local Restrictions Support Grant and Local Restrictions Support Grant, which both closed at the end of March.
There are no current plans to introduce incentives like the Eat Out to Help Out scheme for gyms and fitness facilities. We will continue to monitor the impact of government support on public services, businesses, individuals and sectors, including the leisure, gyms and fitness sector, as we respond to this pandemic, and keep all policies under review.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to extend the 12 month interest and payment holiday under the Bounce Back Loan Scheme for (a) hospitality and (b) other businesses that may still be closed or operating at a reduced capacity when the first payment is due.
Answered by John Glen
Under the Bounce Back Loan scheme, no repayments are due from the borrower for the first 12 months of the loan, giving businesses the breathing space they need during this difficult time. In addition, the Government covers the first 12 months of interest payments charged to the business by the lender.
In order to give businesses further support and flexibility in making their repayments, the Chancellor has announced “Pay as You Grow” (PAYG) options. PAYG will give businesses the option to repay their Bounce Back loan over ten years. This will reduce their average monthly repayments on the loan by almost half. Businesses will also have the option to move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times), or to pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).
Together, the 12-month payment holiday and interest-free period for borrowers, along with the PAYG options, form part of the Government’s unprecedented £280 billion support package for businesses to protect jobs - including paying wages through the furlough schemes and self-employed support payments, generous grants, tax deferrals.
Asked by: Ian Mearns (Labour - Gateshead)
Question to the HM Treasury:
What estimate he has made of the level of infrastructure investment required to support the potential contribution of the (a) North and (b) Midlands to post covid-19 economic recovery.
Answered by Kemi Badenoch - Leader of HM Official Opposition
In November, the government published the first ever National Infrastructure Strategy, setting out our comprehensive plan to transform infrastructure across the UK. The NIS announced a number of measures which will support the North and Midlands in their economic recovery from COVID 19, including: a new £4bn Levelling Up Fund to invest in local infrastructure priorities; £5bn to support UK-wide gigabit broadband roll-out; and a share of £4.2bn for intra-city transport settlements.
The NIS also announced that the government will set up a new UK infrastructure bank, which will be headquartered in the North and will support the UK’s economic recovery from the COVID 19 pandemic.
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 - Shadow Leader of the House of Commons
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 - Leader of HM Official Opposition
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
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
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
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 - Leader of HM Official Opposition
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.