Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policy on introducing measures to help the recovery from the covid-19 outbreak of the Council of Europe debate on 22 June 2021.
Answered by Kemi Badenoch - President of the Board of Trade
The Government takes note of the debate on overcoming the socio-economic crisis sparked by the Covid-19 pandemic and notes that the resolution and recommendations will go to the Committee of Ministers in due course.
The Government has acted to support the economy on a scale unmatched in recent history, protecting jobs and livelihoods and boosting public services.
Because of our economic plan, our recovery will be faster, with the Office for Budget Responsibility now expecting the economy to reach its pre-Covid size two quarters earlier and unemployment to peak at a rate 1 percentage point lower than in its November forecast.
The policy support announced by the Government has led to a significant but necessary increase in borrowing and debt. But it is clear that the costs of inaction would have been far higher.
Strong public finances are a fundamental part of a strong economy and a strong Union. The certainty that comes from ensuring the public finances are on a sustainable path will support economic stability across the UK. Measures announced at Budget 2021 bring debt under control over the medium term, through a fair and progressive package.
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of resolution 2370, entitled fighting fiscal injustice: the work of the OECD on taxation of the digital economy, passed at the Council of Europe on 20 April 2021; and whether the Government plans to take steps following the passing of that resolution.
Answered by Jesse Norman
The Government notes the resolution and welcomes the Council’s support for the work of the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
The Government has been proactive in pressing for an international solution to the tax challenges posed by digitisation of the economy for a number of years.
It is a Government priority to reach a comprehensive global solution this year which includes outputs on both OECD Pillars: on both reallocation of taxing rights and minimum taxation.
Reaching agreement on this would be a major multilateral achievement that introduces stability into the international tax landscape.
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 July 2020 to Question 71019 on Loans: Lebanon, if he will make representations to the International Monetary Fund (IMF) on the potential misuse of IMF loan packages in Lebanon by Hezbollah.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HMT officials are in discussion with the IMF, through the UK’s delegation at the IMF, on the situation in Lebanon and options for IMF economic support. Any new programme needs to be agreed with a new Government, who will succeed the current caretaker arrangement, to ensure that all commitments can be delivered and implemented. No new programme is able to be proposed at this interim stage, so a formal view on the adequacy of safeguards is not possible.
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 July 2020 to Question 68305 on Loans: Lebanon, what risks of misuse the International Monetary Fund has identified for loan packages to Lebanon; and what plans he has for conditions on lending relating to Hezbollah in Lebanon.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The IMF must establish adequate safeguards for use of its resources, consulting and updating the Board of Directors, as its policy develops. Safeguards can include for example: strengthening auditing or procurement rules, and wider Central Bank reform. The UK uses its seat on the IMF Board, in conjunction with other board members, to help ensure that programme conditions are consistent with the IMF’s mandate.
There have not been formal discussions at the IMF board on Lebanon, though the IMF’s spokesman has said recently that “there is significant scope to strengthen the transparency and accountability of economic policies, and public sector entities.”
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to advocate that any International Monetary Fund loan package to Lebanon includes conditions on political restructuring to restrict Hezbollah’s state capture abilities and prevent its control of government spending.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
For all IMF programmes, the UK uses its seat at the IMF’s Board to engage in the process of programme design and stipulation of conditions on lending. We utilise the expertise of our embassy network to ensure that programme conditions reflect the domestic political situation while remaining consistent with the IMF’s mandate.
IMF programmes in general are subject to strict policies of oversight and monitoring, underpinned by well-established mechanisms.
Under its Articles of Agreement, the IMF must establish adequate safeguards for the use of its resources. IMF lending requires safeguards covering key areas of governance and control to help mitigate the risks of misuse of Fund resources and misreporting of data. These safeguards may include limits on how much can be borrowed, conditions on the loans, measures to deal with misreporting or arrears, and safeguard assessments of central banks. The UK also uses its seat at the Board to help shape these policies and ensure that they are applied across all the IMF’s lending arrangements.
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on aviation in Northern Ireland of the abolition of Air Passenger Duty in the Republic of Ireland.
Answered by Robert Jenrick
The government recognises that Northern Ireland faces unique challenges due to its geography. In order to better understand these challenges, the government ran a call for evidence on ‘VAT, Air Passenger Duty and tourism in Northern Ireland’ which closed in June. It is the government’s intention to report at Budget.
Asked by: John Howell (Conservative - Henley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the imposition of Air Passenger Duty on regional airports in the UK.
Answered by Robert Jenrick
Like all taxes, Air Passenger Duty remains under review and officials regularly engage with stakeholders, including representatives from regional airports. Last year regional airports handled approximately 113 million passengers, around 40% of the UK total, and airports across the regions of the UK continue to grow.