Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide financial support for businesses affected by covid-19 restrictions announced by Government on 8 December 2021.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
Plan B has been designed to help control the virus’s spread while avoiding unduly damaging economic and social restrictions. Throughout the pandemic, the Government has demonstrated that it can respond proportionately to the changing path of the virus, and will continue to do so. The Government has a strong track record of responding quickly, flexibly and comprehensively in supporting jobs, businesses, individuals and families if needed.
As part of our £400bn package of support, businesses will continue to receive considerable support into the spring of next year. Small and medium-sized businesses can access Government-guaranteed finance through the extended Recovery Loans scheme until next June. Businesses will be protected from eviction if they are behind on rent on their premises, thanks to the moratorium in place until March 2022. Where applicable, businesses can also continue to apply for the Additional Restrictions Grant (ARG) scheme through their local authority, which is open until March 2022.
For the sectors who were hardest hit by previous restrictions and may need additional support, there is further support in place. Business rates relief for eligible retail, hospitality and leisure businesses in England is available until March 2022, and hospitality and tourism businesses will continue to benefit from a VAT reduction – paying only 12.5% until March 2022. The arts and culture sector can still access support from the £2 billion Culture Recovery Fund and Sports Recovery Package, and the Film and TV Production Restart Scheme, which is in place until 30 April 2022. While the £800m Live Events Reinsurance Scheme is giving events across the country the confidence needed for organisers to plan for the future.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the July 2020 stamp duty holiday on the housing market; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The SDLT holiday was designed to create an immediate boost in housing transactions. In April 2020, during the peak of the first lockdown, transactions fell by more than 50% on the month before.
The number of property transactions has increased each month since then and, according to the latest data from HMRC, in November 2020 there were 13% more transactions than in November 2019.
Officials are monitoring the housing market closely.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to allow community development finance institutions to access funding from the Bank of England.
Answered by John Glen
The Bank of England provides funding to a range of financial institutions through the Sterling Monetary Framework (SMF) to support its monetary policy and financial stability objectives.
Access to the SMF and its lending facilities is a matter for the Bank of England, which publishes clear eligibility criteria on its website. A broad range of counterparties have access to SMF lending facilities which provide funding against eligible collateral across various maturities.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to use debt securities to finance the Government's response to the covid-19 outbreak.
Answered by John Glen
The package of measures that this government has delivered over the past months, in order to provide the critical support needed by individuals, families and businesses facing disruption due to COVID-19, has led to a significant increase in the Government’s financing requirement in the near term. As recently noted by the International Monetary Fund (IMF), the UK authorities’ aggressive policy response has been one of the best examples of coordinated action globally and has helped mitigate the damage, holding down unemployment and insolvencies.
As previously announced by the Chancellor, this additional financing will be fully funded via additional borrowing through the Government’s normal debt management operations. This includes through the increased sale of Government bonds (gilts) via the Debt Management Office (DMO). The majority of the Government's debt is held in gilts.
On 16 July 2020, HM Treasury most recently revised the Debt Management Office’s (DMO) financing remit for 2020-21, announcing that planned gilt sales will now total a minimum of £385bn in the period April to November (inclusive). The DMO is on target to raise this amount.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to include period pants as women's sanitary products for VAT purposes.
Answered by Jesse Norman - Shadow Leader of the House of Commons
At the Budget on 11 March 2020, the Chancellor of the Exchequer announced that a zero rate of VAT will apply to Women’s Sanitary Products from 1 January 2021, at the end of the Transition Period. This will apply to those products which are currently subject to the reduced rate of 5 per cent, for example, tampons and pads, and to reusable menstrual products, such as keepers.
The relief specifically excludes articles of clothing, such as “period pants”. Such exclusions are designed to ensure that the relief is properly targeted, since difficulties in policing the scope of the relief create the potential for litigation, erosion of the tax base and a reduction in revenue. Under existing rules “period pants” may already qualify for the zero rate, when designed for children under the age of 14 if they meet certain maximum sizing limits.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the loss of revenue to the public purse from the UK hospitality sector as a result of covid-19 lockdown restrictions.
Answered by Kemi Badenoch - Leader of HM Official Opposition
HM Revenue and Customs (HMRC) has not made an estimate of revenue lost from the UK hospitality sector as a result of Covid-19 lockdown restrictions.
This sector is a vital source of employment across the country, and in addition to the government’s unprecedented Covid-support package, we have prioritised support for hospitality businesses over the last 6 months by introducing several targeted measures to support the sector. This includes:
However, the Government recognises that the sector has been acutely disrupted by recent restrictions introduced by the Tier system. Through the Chancellor’s Winter Economic Plan, government will protect jobs and struggling businesses across the most impacted areas of the UK.
The Job Support Scheme will guarantee that most workers working a minimum of 20% of hours receive at least 73% of their usual wages, while workers whose employers have been closed by health restrictions will be guaranteed two thirds of their wages.
And hospitality, leisure and accommodation businesses in Tier 2 and Tier 3 areas will be eligible to receive a grant of up to £2,100 and £3,000, respectively, according to the value of their premises. Sufficient funding will be allocated to Local Authorities to distribute.
Asked by: Jane Stevenson (Conservative - Wolverhampton North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will grant a business rates exemption to hospitality venues during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has provided 100 per cent business rates relief for 12 months from 1 April 2020 to eligible businesses occupying properties in England used for retail, hospitality and leisure.