Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department takes to ensure that appointed financial ombudsmen operate with (a) fairness, (b) due diligence and (c) impartiality.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The freedom of the Financial Ombudsman Service (FOS) to operate is strictly governed by the framework of duties set out in legislation by Parliament. The Financial Services and Markets Act 2000 required the Financial Conduct Authority (FCA) to establish the FOS as an independent body which can resolve disputes quickly and with minimum formality. The FOS must make determinations on complaints by reference to what is (in the opinion of the ombudsman) fair and reasonable in all the circumstances of the case. The FOS and the FCA maintain arrangements for the investigation of complaints, and their decisions can also be subject to judicial review.
The Government believes that it is vitally important that the FOS should be accountable for its performance and the quality of its work. The FCA’s appointment of the Chair of the FOS is subject to approval by the Treasury, on behalf of the Government. The FOS is also required to send a copy of its annual accounts to the Comptroller and Auditor General, whose report must then be laid before Parliament by the Treasury.
To ensure transparency, the FOS must also publish reports of determinations (unless, in the ombudsman’s opinion it would be inappropriate). This ensures that the public, including Parliament, have a full and balanced picture of the decisions the FOS reaches.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce levels of tax avoidance by multi-national corporations.
Answered by Jesse Norman
The UK has a comprehensive range of measures in place to tackle tax avoidance and tax planning arrangements entered into by multinational corporations.
For example, the Diverted Profits Tax (DPT) was introduced in 2015, and aims to change the behaviour of companies using contrived arrangements to avoid UK tax, by charging tax on these arrangements at a higher rate. Its primary purpose is to ensure that the profits taxed in the UK fully reflect the economic activity carried on in the UK.
Similarly, the Offshore Receipts from Intangibles Property (ORIP) regime, introduced in 2019, is designed to deal with arrangements where the UK sales of multinational groups generate significant offshore income in low or no tax jurisdictions, in circumstances where normal royalty withholding tax rules would not apply. This measure is expected to generate about £1bn of additional tax revenue over a five year period.
The UK continues to take a leading role in international efforts to tackle tax avoidance by multinationals. Following on from the OECD BEPS (Base Erosion and Profit Shifting) project, the UK is fully engaged in continuing work at the OECD in relation to the challenges of taxing the digital economy. The UK has been at the forefront of these discussions within the OECD, and will be continuing to meet virtually with the OECD Working Parties in the coming weeks and months.
With regard to the taxation of the digital economy, the UK has been clear that it favours an international agreement on this issue. In advance of an agreed outcome, the UK has introduced its own Digital Services Tax (DST) which came into force in April 2020 and is expected to generate over £2bn of additional tax revenue in the next 5 years.
The DST will be an important tool for addressing the limitations of the existing international tax framework, ensuring that businesses pay tax in the UK that reflects the value they generate from user interaction. The Government has been clear that it will remove the DST once an appropriate global solution is in place.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the adequacy of the (a) loan schemes and (b) other fiscal support available for businesses (i) of different sizes and (b) in different sectors during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP. On 12 May the Government published new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis. This includes:
· 268,000 Bounce Back Loans (BBL) for small businesses, worth £8.3 billion
· 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme (CBILS) for SMEs
· £359 million through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) for large firms
Figures from the Bank of England show that over £18.7 billion has been distributed to large firms through the Covid Corporate Financing Facility (CCFF). Together, these schemes ensure almost all viable UK businesses can apply for a government backed loan.
In addition, the Government has implemented a range of further measures which are providing support to millions of businesses of all sizes and across sectors, including:
· The Coronavirus Job Retention Scheme (CJRS) – now extended until October
· A 12-month business rates holiday for all eligible retail, leisure and hospitality businesses in England
· Grant funding for small businesses, and retail, leisure and hospitality businesses
· VAT deferral for up to 12 months
· The Time To Pay scheme, through which businesses in financial distress, and with outstanding tax liabilities, can receive support with their tax affairs
· Protection for commercial leaseholders against automatic forfeiture for non-payment until June 30 2020
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support independent businesses during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including an initial £330 billion of guarantees – equivalent to 15% of UK GDP. We have made significant changes to the operation of statutory sick pay, universal credit, and employment and support allowance to ensure that people have quicker and more generous access to a support system. We have taken further steps to give businesses access to cash to pay rent, salaries or suppliers, alongside a commitment to pay 80% of the regular monthly wages, up to £2,500, of furloughed workers for three months, via the Coronavirus Job Retention Scheme (CJRS), and help for the self-employed with the Self-Employment Income Support Scheme (SEISS).
Our economic response is one of the most generous and comprehensive globally and we are working urgently to deliver these schemes as quickly as possible.
Businesses are now able to access much of this support already. There is a Business Support website that helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support/
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reduce pool betting duty from 15 per cent to 10 per cent.
Answered by Simon Clarke
The Government has no current plans to reduce Pool Betting Duty. Reducing it to 10% is likely to have a negligible effect on The Football Pools, but could put revenue at risk particularly through incentivising the switching of products from fixed odds bets to pooled bets.
HM Treasury however keeps all taxes, including Pool Betting Duty, under active review.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to narrow wealth differentials between the richest and poorest (a) individuals, (b) regions, (c) counties and (d) constituencies.
Answered by Rishi Sunak - Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
Addressing inequalities is an important consideration for this Government, and steps have already been taken to ensure those with the broadest shoulders bear the greatest burden. That is why we have introduced reforms to dividend taxation and capital gains tax, and ended permanent non-domicile status – to ensure the rich pay their fair share. This has led to the top 1% of income taxpayers paying 29% of income tax – a record high.
This Government is also committed to ensuring opportunities are shared in every part of the country. People across all regions are benefitting from investments the Government is making. For example, since 2015, £12bn from the Local Growth Fund has been provided to local enterprise partnerships for projects that benefit the local area and economy. In addition to this, our new £3.6 billion Towns Fund will level up opportunity and create places across the UK where people want to live and thrive – supporting an initial 100 towns.
By supporting all places to reach their potential, we can drive growth at a national level and readily share the benefits of a more prosperous United Kingdom.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure people are able to access cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that widespread free access to, and acceptance of, cash remains extremely important to the day-to-day lives of many consumers and businesses in the UK.
In Spring 2018, the Government conducted a Call for Evidence on Cash & Digital Payments in the New Economy. In the recent response to this Call for Evidence, the Government committed to supporting digital payments whilst safeguarding access to cash for those who need it. Furthermore, the Government announced the launch of the Joint Authorities Cash Strategy (JACS) Group, which brings together the Payment Systems Regulator (PSR), Financial Conduct Authority and Bank of England to ensure a comprehensive oversight of the overall cash infrastructure in light of changing trends related to cash.
The Government established the PSR in 2015, with robust powers and a statutory objective to ensure that the UK's payment systems work in the interests of their users. The PSR regulates LINK, the scheme which runs the UK’s ATM network, and has used its powers to hold LINK to account over LINK’s commitments to preserve the broad geographic spread of the ATM network.
Furthermore, the Government has invested heavily in maintaining a stable network of Post Office branches, with investment of over £2 billion since 2010. Currently, 99 per cent of personal customers and 95 per cent of small business customers can access cash locally at one of the Post Office’s 11,500 branches.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to cap large bonuses paid to bankers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The EU’s Capital Requirements Directive IV introduced a cap on variable remuneration for senior staff and other key decision makers, applicable from January 2014. It is set at 100% of the individual’s salary, or up to 200% where both the Member State and shareholders agree. In the UK, this currently applies to firms with relevant total assets exceeding £15 billion, with the Prudential Regulation Authority and the Financial Conduct Authority responsible for ensuring firms comply with this requirement.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to Answer of 29 January 2019 to Question 210669, what would be the net cost to the public purse of reducing the football pools betting duty from 15 to 10 per cent.
Answered by Robert Jenrick
No assessment of the Exchequer impact of reducing the rate of Pool Betting Duty to 10% has been made.
However due to the ease of changing between pools betting and regular betting the Government considers it would put a significant portion of the General Betting Duty receipts at risk – which totalled £572m in 2017-18.
A list of current and future gambling duty rates can be found in Annex A of the Government’s Budget 2018 document.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/754766/Annex_A_rates_and_allowances.pdf
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, in pursuant to Answer of 29 January 2019 to Question 210669 on Football Pools: Excise Duties, what assessment he has made of the level of risk that bookmakers will switch their fixed odds bets to pools to avoid paying General Betting Duty in the event that Pools Betting Duty was to be reduced to 10 per cent.
Answered by Robert Jenrick
No assessment of the Exchequer impact of reducing the rate of Pool Betting Duty to 10% has been made.
However due to the ease of changing between pools betting and regular betting the Government considers it would put a significant portion of the General Betting Duty receipts at risk – which totalled £572m in 2017-18.
A list of current and future gambling duty rates can be found in Annex A of the Government’s Budget 2018 document.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/754766/Annex_A_rates_and_allowances.pdf