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.