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 - Shadow Chief Secretary to the Treasury
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
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
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
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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 - Shadow Leader of the House of Commons
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.
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 revenue impact in 2022-23 of introducing zero-rate contributions on secondary class 1 contributions for employees at freeport tax sites.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The National Insurance contribution relief will be important in supporting the Government’s objectives for the Freeports programme, which includes regeneration through job creation. The Government has considered the costs of the tax reliefs that will be granted across each of the eight English Freeport locations. However, as a result of these tax reliefs applying only in tax sites agreed and confirmed by Government, estimates of their cost will be dependent on the final locations once agreed.
Bidders were required to submit initial proposals for their tax sites as part of their bids. The Government will outline the process for confirming tax sites in due course and expects to score the costs of tax reliefs, including zero-rate contributions, at the next fiscal event. These costings will undergo the usual scrutiny from the Office for Budget Responsibility.
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 number of employees that will benefit in 2022-23 from the introduction zero-rate contributions on secondary class 1 contributions for employees at freeport tax sites.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The National Insurance contribution relief will be key in supporting the Government’s objectives for the Freeports programme, which includes regeneration through job creation. The Freeports tax sites have not yet been confirmed and so the Government is currently unable to give an accurate estimate of the number of employees that benefit in 2022-23 as this will depend on how many employers use the relief and will vary depending on a number of circumstances, including the location of the Freeport tax site.
The Government will publish an updated Tax Information and Impact Note (TIIN), when further information is available following confirmation of the tax sites.