Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he has taken to assess the extent of (a) domestic tax base erosion and profit shifting and (b) tax avoidance by multinational shipping companies registered in the UK.
Answered by Richard Fuller
The Government has not carried out any sector-specific assessment of the extent of base erosion and profit shifting or tax avoidance by multinational shipping enterprises. However, the UK has led on international measures to combat base erosion and profit-shifting by multinationals. In particular, the UK has played a leading role in the OECD base erosion and profit shifting project. Since 2015, the UK has introduced a number of key measures to combat multinational tax planning, including diverted profits tax, corporate interest restriction, hybrid mismatch rules, and rules dealing with offshore receipts from intangible property.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many shipping companies that qualify for tonnage tax operate container lines from UK ports.
Answered by Richard Fuller
The information requested is not available. It is not possible to identify which shipping companies qualifying for tonnage tax operate container lines from UK ports, because companies paying tonnage tax are not required to declare this information in tax returns.
HMRC does publish the total number of companies paying tonnage tax in its publication on non-structural tax reliefs, available here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs. In 2018-19, in total 415 companies paid tonnage tax.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to introduce a windfall tax on the profits of container shipping companies operating from the UK.
Answered by Richard Fuller
The Government currently has no plans to introduce new windfall taxes on businesses operating from the UK.Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the impact on economic growth of the measures for households announced in his Economy Update on 26 May 2022; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has published analysis alongside the May 2022 Cost of Living support package. This includes an analysis of the impact of the support package on households across the income distribution. The published report can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1078837/DA_May_2022_publication.pdf
Alongside this the published Cost of Living support factsheet can be found at: https://www.gov.uk/government/publications/cost-of-living-support/cost-of-living-support-factsheet-26-may-2022. This includes illustrative case-studies which show the combined impact of the Cost of Living package, support announced in February 2022, and changes in the labour market.
HM Treasury does not prepare formal forecasts for the UK economy. The macroeconomic impacts of the support package will be incorporated into the next forecast produced by the Office for Budget Responsibility (OBR).
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling his Department has undertaken on the economic stimulus effect of the measures for households announced in his Economy Update on 26 May 2022; and if he will make a statement.
Answered by Simon Clarke
The Government has published analysis alongside the May 2022 Cost of Living support package. This includes an analysis of the impact of the support package on households across the income distribution. The published report can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1078837/DA_May_2022_publication.pdf
Alongside this the published Cost of Living support factsheet can be found at: https://www.gov.uk/government/publications/cost-of-living-support/cost-of-living-support-factsheet-26-may-2022. This includes illustrative case-studies which show the combined impact of the Cost of Living package, support announced in February 2022, and changes in the labour market.
HM Treasury does not prepare formal forecasts for the UK economy. The macroeconomic impacts of the support package will be incorporated into the next forecast produced by the Office for Budget Responsibility (OBR).
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling his Department has undertaken on the extra investment that will be brought forward as a result of the introduction of the investment allowance announced in his Economy Update on 26 May 2022.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The new Energy Profits Levy will raise around £5 billion over the next year. This figure factors in the investment allowance.
The Government expects the combination of the Levy and the investment allowance to lead to an overall increase in investment.
The Levy will be legislated for shortly, and a Tax Information and Impact Note will be published as standard. A full costing of the policy will be certified by the independent Office for Budget Responsibility at Autumn Budget 2022.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the cost to the Exchequer of the investment allowance announced in his Economy Update on 26 May 2022.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The new Energy Profits Levy will raise around £5 billion over the next year. This figure factors in the investment allowance.
The Government expects the combination of the Levy and the investment allowance to lead to an overall increase in investment.
The Levy will be legislated for shortly, and a Tax Information and Impact Note will be published as standard. A full costing of the policy will be certified by the independent Office for Budget Responsibility at Autumn Budget 2022.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraphs 3.2 and 4.1 of the Civil Service Pay Remit Guidance 2020-21, published by the Cabinet Office on 18 May 2020, which elements of the HM Revenue and Customs pay business case for years 2020-21 to 2022-23 have been disclosed to its recognised trade unions.
Answered by Jesse Norman
HMRC have collectively agreed their pay and working arrangement reforms with their recognised departmental unions, ARC and PCS. Union members voted in favour for HMRC’s pay and contract reform offer and HMRC have started to implement reforms.
HMRC conducted an intensive period of negotiations with trade unions to reach the collectively agreed position, based on proposals set out in the original business case. The final position agreed during these talks was then put to union members at Trade Union organised ballots, where it was strongly supported.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 4.1 of the Civil Service Pay Remit Guidance 2020-21 published by the Cabinet Office on 18 May 2020, what assessment he has made of the adequacy of HM Revenue and Customs' work with its recognised trade unions on the development of its pay business case for years 2020-21 to 2022-23.
Answered by Jesse Norman
The Civil Service Pay Remit Guidance 2020-21 encourages departments to work constructively with trade unions on the development of their overall pay, reward and workforce strategies as a matter of course. HMRC have followed the Cabinet Office procedure for pay cases including conducting formal negotiations with trade unions in late 2020.
The outcome was a pay settlement agreed with trade unions and endorsed by Union members in a series of ballots held in February 2021.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HM Revenue & Customs consulted its recognised trade unions on the contract of employment that applies to apprentices working in the HMRC Surge & Rapid Response Team; and if he will make a statement.
Answered by Jesse Norman
The Surge and Rapid Response Team (SRRT) was established in May 2015, following a request from the Cabinet Office, Civil Service People Board to find innovative ways to improve operational resilience across Government.
Recognised Civil Service trade unions FDA and PCS were informed of the SRRT contracts prior to advertising the posts.
All contracts were drafted and reviewed by Civil Service Employee Policy, and Treasury Solicitors were also consulted. Any subsequent changes to contracts and the relationship with broader HMRC contractual changes were also done with union consultation.