Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the fiscal framework on farmers who have diversified from farming activity.
Answered by Jesse Norman
A longstanding feature of the UK tax system is that a person’s UK farming income is treated as one trade. When a farming business diversifies, any non-farming activities are treated as separate sources of income that need to be declared separately on the tax return. The Government recognises that this creates additional administrative burdens. However, taxing diversified rural businesses as one unit would carry a risk that uncommercial activities might be grouped together with profitable trades. The Government keeps all taxes under review but has no plans to change the current tax rules for diversified rural businesses.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with his Chinese counterpart on debt relief for developing countries in response to the covid-19 pandemic.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In April 2020, G20 Finance Ministers approved the Debt Service Suspension Initiative (DSSI) to pause debt repayments from the poorest countries in 2020. On 14 October the Chancellor met with his G20 counterparts, including China, to agree an extension of the DSSI for 6 months. The G20 also agreed in principle a Common Framework on future debt treatments beyond the DSSI which will ensure fair, timely and sustainable debt reductions on a case by case basis when needed.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the cost to the mining and quarrying industries of the withdrawal of the red diesel fuel duty rebate from April 2022; and whether that assessment includes the availability of alternative non-fossil fuel heavy plant and machinery.
Answered by Kemi Badenoch - President of the Board of Trade
At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). This change will ensure that most businesses using diesel in the UK pay the standard fuel duty rate on diesel, which more fairly reflects the harmful impact of the emissions they produce. These reforms are also designed to ensure that the tax system incentivises users of diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives or use less fuel.
The Government recognises that this will be a significant change for some businesses, including in the mining and quarrying industries. It launched a consultation in July to make sure it has not overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022, and officials met with representatives from the industry on the 8th of September. As part of this, the Government has been seeking information from affected users on the expected impact of these tax changes, including on their capacity to shift to cleaner alternatives.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the feasibility of extending the reduced rate of VAT for hospitality, holiday accommodation and attractions beyond 12 January 2021 to further support business in those sectors.
Answered by Jesse Norman
The Government has temporarily applied a reduced rate of VAT (5 per cent) to tourist attractions and goods and services supplied by the hospitality sector. It came into effect on 15 July 2020 and will end on 12 January 2021 and applies across the UK.
Applying the reduced rate for a longer period would come at a significant cost to the Exchequer. However, the Government keeps all taxes under review.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of providing businesses located in the vicinity outside a local covid-19 lockdown area with additional financial support to mitigate the effect of restricted movement.
Answered by Kemi Badenoch - President of the Board of Trade
The government has delivered on its promise to stand by businesses and workers throughout the pandemic and has provided one of the most comprehensive and generous packages of support globally. This support has included billions of pounds for businesses through loans and grants, support for millions of jobs through the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme, deferred VAT payments, and a lease forfeitures moratorium for commercial tenants. The Chancellor recently extended the furlough scheme until the end of October and a host of these other support measures are still available to support businesses. Additionally, on 8 July the Chancellor announced the Plan for Jobs, the measures in which will provide additional support to all businesses as we reopen the economy.
We are continuing to review the economic situation and will continue helping businesses through this crisis where it is appropriate.