Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people of state pension age who will not be eligible for the £150 council tax rebate because they live in properties with tax bands E to H; and what assessment the Government made of the potential impact on that group before restricting eligibility to people in properties in Council Tax bands A to D.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government understands the pressures that people across the UK are facing with the cost of living. This is why the Government is providing over £15 billion in further support targeted towards those with the greatest need. From the Autumn, over eight million pensioner households who receive the winter fuel payment, will receive an extra one-off pensioner cost-of-living payment of £300 this year to help cover the rising cost of energy this winter.
Local authorities in England have received £144 million of discretionary funding to support households that are not eligible for the council tax rebate, including households in bands E-H. Local authorities are best-placed to determine how this support should be targeted, informed by guidance from the Department for Levelling Up, Housing and Communities.
Devolved governments in Scotland, Wales and Northern Ireland are receiving Barnett funding as a result of the council tax rebate and associated discretionary funding in England.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to negotiate with European counterparts to streamline regulation to allow vital humanitarian aid to reach Ukrainians.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The UK is committed to working with partners, including the EU, as well as humanitarian agencies to ensure a well-coordinated and well-funded response to the humanitarian crisis in Ukraine and the surrounding region.
We have initiated a number of conversations with the EU and its Member States to understand their plans to ease the movement of humanitarian supplies. The EU has been working with Member States on this issue and several of them have eased their entry and exit regime to support the humanitarian effort for Ukraine.
The UK Government has also introduced a simplified customs process to support the export of aid goods destined for victims of the humanitarian crisis in Ukraine. More information about this can be found here: https://www.gov.uk/guidance/taking-humanitarian-aid-out-of-great-britain-to-support-ukraine.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to reconsider the Government's changes to the entitlement for farmers' use of red diesel, so that farmers are not required to drain tractors' tanks to refill with white diesel for a single day of ploughing competition, and the following day drain the tank of white diesel and refill with red diesel.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Chancellor confirmed at Spring Budget 2021 that the Government will remove the entitlement to use red diesel from most sectors from April 2022, other than for agriculture and a limited number of other users. This will help to ensure fairness between the different users of diesel fuels and that the tax system incentivises the development and adoption of greener alternative technologies.
Agricultural vehicles will be entitled to run on rebated fuel after April 2022 for purposes relating to agriculture, horticulture, forestry and fish farming. They will also be able to use rebated fuel when cutting verges and hedges that border a road, clearing snow, gritting, and clearing or otherwise dealing with flooding.
The activities accepted as falling within the definition of agriculture, horticulture and forestry are defined in HMRC Excise Notice 75. As agricultural shows and ploughing matches provide information and education that benefits agricultural purposes, the Government considers that running or participating in these activities are purposes relating to agriculture, for which rebated fuel may be used in qualifying vehicles and machines, and will be updating Excise Notice 75 accordingly. Rebated fuel can also be used to travel to and from where the vehicles or machines are to be used for these activities.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of redrawing the Withdrawal Agreement to provide better support to UK businesses.
Answered by Simon Clarke
Following the Withdrawal Agreement, the UK agreed the Trade and Cooperation Agreement (TCA) with the EU – the first free trade agreement the EU has ever reached based on zero tariffs and zero quotas, helping to support businesses.
The TCA means that the UK can now regulate in a way that suits the UK economy and UK businesses – doing things in a more innovative way, without being bound by EU rules. We are ensuring businesses continue to get the support they need to trade effectively with the EU, and to seize new opportunities as we strike trade deals with the world’s fastest growing markets.
The Government is in negotiations with the EU to address issues in the Northern Ireland Protocol, to ensure businesses that move goods between Great Britain and Northern Ireland face minimal burdens.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the equity of his policies on the recovery of fraudulently claimed covid-19 support funds and the pursuance of the retrospective loan charge.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Covid-19 support funds and the Loan Charge are two distinct polices.
In relation to the Covid-19 support funds, throughout the pandemic, the Government’s number one priority has been to protect jobs and livelihoods while also supporting businesses and public services across the UK.
The overwhelming majority of people that claimed Covid-19 support did so legitimately. However, HMRC are aware that mistakes can happen, which is why they are supporting people who made a mistake to correct it. Those who keep money claimed from any of the Covid-19 support schemes despite knowing they were not entitled to it face having to repay up to double the amount they received, plus interest, and potentially criminal prosecution in the most serious of cases.
The Loan Charge was announced at Budget 2016 and was a new tax charge on disguised remuneration loan balances outstanding on 5 April 2019. The Government recognises the Loan Charge can have a significant impact. Anyone who is worried about being able to pay their Loan Charge liability should contact HMRC. They may be able to agree an instalment arrangement based on their financial circumstances.
No comparative assessment of the recovery of Covid-19 support and liabilities related to the Loan Charge has been made, as they are not directly comparable.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to protect pensioners at risk of financial hardship as a result of increases in the cost of energy.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government is committed to ensuring that older people are able to live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people.
Over the last two years, the basic and new State Pension have increased by more than 5.6%. This means that from April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms.
The overall trend in the percentage of pensioners living in poverty is a dramatic fall over recent decades. There are 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than in 2009/10.
The Government is providing support worth over £20 billion across this financial year and next that will help households, including pensioners, with the cost of living. This includes the £9.1 billion package announced this February to help with rising energy bills.
Our generous package includes a non-repayable £150 council tax rebate from April and a further reduction of £200 on energy bills in October. The £200 reduction in households’ energy bills from October will help people manage the increase in energy bills by spreading the increased costs over a few years, so they are more manageable for households.
This is on top of existing support available through Pension Credit, Winter Fuel Payments for households with people over State Pension age, the Warm Home Discount Scheme, and Cold Weather Payments.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to recoup monies lost to fraud in the coronavirus grant schemes.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has consistently stated that fraud is totally unacceptable. We are taking action on multiple fronts to recover money lost to error and fraud and, where necessary, taking legal action against those who have sought to exploit our schemes.
The Government takes the issue of potential fraud relating to covid support schemes extremely seriously. Robust measures were put in place to control error and fraud in the key covid support schemes from their inception. For instance, to minimise the risk of fraud and error and unverified claims, the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) were designed in a way to prevent ineligible claims being made up front, and made payments for employees and businesses using existing data held on HMRC’s systems. That included cut-off dates around scheme eligibility and the need for customers to be registered for pay-as-you-earn online or self-assessment.
To further bolster anti-fraud measures, at the Spring Budget last year, the Government invested more than £100 million in a Taxpayer Protection Taskforce of more than 1,200 HMRC staff to combat Covid-related fraud. This Taskforce is expected to recover between £800 million and £1 billion from fraudulent or incorrect payments during 2021-22 and 2022-23. In addition, HMRC has so far stopped or recovered £743 million of overclaimed grants in 2020/21.
Local authorities are responsible for ensuring the safe administration of Covid support grants to businesses and that appropriate measures are put in place to mitigate against the increased risks of both fraud and payment error. Guidance for the grant schemes requires that local authorities have assurance plans in place which set out the steps they would take to minimise fraud. Government has mandated pre-payment checks (company and bank account searches) as well as post-event assurance, and a Fraud Risk Assessment, as standard elements of this plan.
Where grants have been paid in error, non-compliantly or to a fraudster, local authorities must seek to recover these funds and return them to BEIS. If local authorities have been unable to reclaim the grant, the case may be referred to BEIS under the Debt Recovery Policy to establish the next steps. Local Authorities are required to demonstrate that they have taken all reasonable and practicable steps to reclaim incorrectly paid grant funds. 93 cases are currently being triaged and debts assigned to BEIS for referral to Indesser, a Cabinet Office procured debt recovery service, to action.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people seeking refunds as a result of the changes to the Loan Change made in response to the Morse Review have been refunded by HMRC.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
This question is answered on the basis that your question is about HMRC’s Disguised Remuneration (DR) Repayment Scheme 2020. Following Lord Morse’s Independent Loan Charge Review in 2019, the Government introduced legislation requiring HMRC to establish a scheme to repay relevant Voluntary Restitution elements of DR settlements.
These amounts were voluntary payments that taxpayers had agreed to make as part of settlements concluded before changes were made to the scope of the Loan Charge. Individuals and employers had until 30 September 2021 to apply to HMRC for a refund or waiver.
HMRC repays amounts that were paid in DR scheme settlements, and/or waives amounts of instalments due that have not yet been paid if certain conditions are met.
As of 28 January 2022, HMRC had processed approximately 1500 applications, of which approximately 1000 had received either a repayment, a waiver, or both. Approximately 500 of the applications processed at that date were either invalid or ineligible.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will announce a further review of the Loan Charge policy.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
An independent review of the Loan Charge has already taken place. The 2019 Review, conducted by Lord Morse, concluded that it was right for the Loan Charge to remain in force and for the Government to collect the tax due. The Government accepted all but one of the 20 recommendations in the Review.
The charge on Disguised Remuneration loans is targeted at contrived tax avoidance schemes which seek to avoid Income Tax and National Insurance contributions by paying users their income in the form of loans, usually via an offshore trust. This kind of tax avoidance deprives the Exchequer of funds to deliver vital public services.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the obligations on employment agencies and umbrella companies set out under Chapter 10 Part 2 of The Income Tax (Earnings and Pensions) Act 2003.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Tax Information and Impact Note published in March 2021 set out the expected impacts of the April 2021 reform of the off-payroll working rules, which can be found here: https://www.gov.uk/government/publications/off-payroll-working-rules-from-april-2021/off-payroll-working-rules-from-april-2021
Research into the effects of the off-payroll working rules reforms on employment agencies was published in March 2021, and can be found here: https://www.gov.uk/government/publications/effects-of-the-off-payroll-working-reforms-on-employment-agencies
During the debate on the Finance Bill 2020, the Government committed to commission independent research into the short-term impacts of the reform by October 2021. That research has been commissioned. The Government will publish its findings once complete.