Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide additional support to SMEs such as dental and other medical practices by (a) requiring insurers to honour covid-19 claims under business interruption policies which covered notifiable diseases, even if covid-19 was not explicitly listed; and (b) allowing the directors of limited companies a monthly grant comparable to those given to employees and the self-employed.
Answered by Steve Barclay
The Government recognises the important role all medical business play to protect and improve the health of the population and is taking many steps to support them during the COVID-19 outbreak:
Medical practices may also benefit from the range of economic support measures the Government has announced. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Most commercial insurance policies are unlikely to offer cover for unspecified notifiable diseases, such as COVID-19. However, those businesses which have an insurance policy that covers both pandemics and government ordered closure, should be able to make a claim – subject to the terms and conditions of their policy. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.
Income from dividends is a return on investment in the company, rather than wages. HMRC are not able to distinguish between dividends derived from an individual’s own company and dividends from other sources, so do not have a clear mechanism through which to support dividend income from an individual’s own company, without also supporting dividend income from other investments. Company directors who pay themselves a salary through a PAYE scheme may be eligible for the Coronavirus Job Retention Scheme (CJRS).
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with representatives of the financial sector on endowment mortgage policies due to mature during the covid-19 outbreak with no prospect of discharging the mortgages to which they are linked; and if he will make it his policy to require companies providing such policies to extend their maturity dates until the after the outbreak.
Answered by John Glen
The Government has been working closely with the financial sector to ensure appropriate forbearance is being shown across the mortgage market, including a 3-month mortgage holiday to enable affected borrowers to defer their mortgage payments and a 3-month moratorium on possession action to provide customers with reassurance that they will not have their homes repossessed at this difficult time.
Endowments are a form of investment, therefore, any extension to maturity dates would be a bespoke commercial decision and down to individual providers. We advise any customer whose endowment is to mature, to seek advice from both their lender and insurer on how to proceed.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will instruct HMRC to suspend the (a) pursuit and (b) enforcement of loan charge revenues until after the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
There is currently no HMRC debt collection activity being pursued in relation to taxpayers in respect of the loan charge.
Where a taxpayer has included the loan charge on their 2018/19 tax return, HMRC will respond to any contact from them, including agreeing payment plans if requested, but will not initiate any contact or take any enforcement action ahead of the revised filing and payment deadline of 30 September 2020.
There does remain a risk that, with large scale delivery at pace, some taxpayers may be contacted in error. In that case, they should contact HMRC, who will confirm that they do not need to pay until the 30 September 2020 payment deadline.
HMRC have been clear on their commitment to support all taxpayers who need help to manage their disguised remuneration (DR) liabilities, including those affected by COVID-19.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 29 April 2020 to Question 39450 on financial support to small-to-medium transport companies engaged in importing and distributing PPE and other essential supplies, what discussions he has had with the Secretary of State for Housing, Communities and Local Government on (a) cancelling and (b) deferring until at least the end of the covid-19 outbreak Business Rates for those companies; what assessment he has made of implications for his policies of the reluctance of some companies to continue trading with the prospect of facing substantial accumulated loan debt by the end of the crisis; and what steps the Government is taking to encourage otherwise viable companies not to cease trading for fear of that outcome.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The current business rates holiday policy aims to provide support to all eligible businesses in the retail, hospitality and leisure sector at this challenging time. These businesses are likely to face particularly high fixed costs, such as fixed rents and other building-related costs and are wholly or mainly being used by visiting members of the public. However, businesses outside of these sectors, such as small-to-medium transport companies, may benefit from a range of other support measures including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Additional debt will not be the right answer for all businesses, and it is important that businesses consider carefully before applying for a loan. The Government will provide CBILS lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to viable SMEs. The government will not charge businesses for this guarantee. On the BBL scheme, the Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. For both schemes the Government will cover the first 12 months of interest payments and fees charged by the lenders. This is called the Business Interruption Payment.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what (a) grants and (b) other support, apart from the Coronavirus Job Retention Scheme, he plans to make available to medium-size businesses which are (a) run from home, (b) not being paid for their services during the covid-19 outbreak and (c) required to pay their suppliers in advance; and what guidance he plans to issue to banks that are awarding loans under the Coronavirus Business Interruption Loan Scheme on flexibility in administering that scheme for businesses that are under financial pressure as a result of the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Local Authority grants schemes have been designed to ensure that payments are made quickly and efficiently to small businesses facing particularly high fixed-property costs. Businesses which are not eligible for the grants may benefit from other measures in the Government’s unprecedented package of support for business, including:
On 3 April the Government extended CBILS so that all viable small businesses affected by COVID-19, and not just those viable businesses unable to secure regular commercial financing, will now be eligible if the lender believes they will need finance to see them through these unprecedented times. This exceptional support is designed to enable all long-term viable businesses experiencing difficulties as a result of the coronavirus outbreak to access finance.
The Government has also removed the forward-looking viability test, that required an assessment of whether the business can trade out of the crisis, and the per lender portfolio cap, to give lenders the full 80% guarantee across all CBILS lending. Finally, no lender can take a personal guarantee for a loan of less than £250,000. For loans over the value of £250,000, a personal guarantee can only be taken for 20% of the outstanding balance. However, a lender is not allowed to take a personal guarantee against a borrower's principle residence under the scheme.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support he is providing to small-to-medium transport companies that are substantially engaged in the importing and distribution of personal protective equipment and other essential medical supplies; and if he will make it his policy to offer such companies (a) business rate relief and (b) support grants similar to those available to retail, hospitality and tourism businesses.
Answered by John Glen
The Government recently announced a trilateral agreement, with the French and Irish governments, committing to keeping freight routes open throughout the crisis. In addition, the Government has announced additional support to protect key maritime freight routes. This includes up to £17m to support routes between Great Britain and Northern Ireland, and up to £10.5m for links to the Ilse of Wight and the Scilly Isles, to ensure the continued operation of essential services. The Department for Transport is continuing to engage with the haulage industry to understand the impact of Covid-19 on the sector.
The business rates relief and grant schemes for eligible retail, leisure and hospitality businesses have been designed to support the smallest businesses, and smaller businesses in some of the sectors which have been hit hardest by the measures taken to prevent the spread of Covid-19. Small and medium-sized businesses which are not eligible for these schemes may be able to benefit from other measures in the Government’s unprecedented package of support, including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support he plans to allocate to (a) optometrists, (b) physiotherapy, chiropractic and osteopathy clinics, (c) podiatrists and (d) other healthcare practices that are receiving near-zero patient income due to the covid-19 outbreak; and if he will make it his policy to exempt such healthcare practices from fees normally payable to their regulators.
Answered by John Glen
The Care Quality Commission (CQC) recognises this is a challenging and uncertain period for providers of health and social care, with some suspending their routine services, changing how services are delivered or developing and expanding their service to support the national response to COVID-19. The CQC are asking providers to contact them if they are facing any difficulties in paying CQC’s fees. In these circumstances the CQC will work constructively to find an appropriate solution. Additionally, to give providers in financial difficulty space during this period the CQC will not seek to recover aged debt for the next three months.
NHS England and NHS Improvement issued guidance on 1 April setting out that all routine NHS eye care services should be suspended during COVID-19 to ensure compliance with social distancing measures. Essential services will continue to be provided from a limited number of optical practices. NHS England and Improvement has committed to securing funding for NHS ophthalmic contractors based on average monthly NHS General Ophthalmic Services fees from the previous year. Where activity exceeds the average monthly costs, this will attract additional funding and be reimbursed in the usual way.
Practices are still able to access central Government support for the private element of their business, as can practices who have not been selected to provide essential eye care services.
Support available for private medical businesses includes a commitment to pay 80% of the regular monthly wages, up to £2,500, of furloughed workers for four months, via the Coronavirus Job Retention Scheme (CJRS), and help for the self-employed with the Self-Employment Income Support Scheme (SEISS), which will provide grants to those who are self-employed, or members of partnerships, worth 80% of their trading profits/partnership trading profits, also up to a maximum of £2,500 per month.
Healthcare practices may also benefit from other measures, including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that directors of businesses, who cannot be themselves be furloughed while administering the payments of their staff members on furlough, receive financial support comparable to that received by such members of staff; and what other steps he plans to take to support directors of small businesses during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Those who pay themselves a salary through their own company may be eligible to claim for 80% of usual monthly wage costs, up to £2,500 a month, through the Coronavirus Job Retention Scheme (CJRS). The CJRS is available to employers, including personal service companies, and individuals paying themselves a salary through a PAYE scheme are eligible. Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.
Income from dividends is a return on investment in the company, rather than wages, and is not eligible for support. Under current reporting mechanisms it is not possible for HM Revenue and Customs to distinguish between dividends derived from an individual’s own company and dividends from other sources, and between dividends in lieu of employment income and as returns from other corporate activity. Expanding the scope would require HMRC to collect and verify new information. This would take longer to deliver and put at risk the other schemes which the Government is committed to delivering as quickly as possible.
Those who are not eligible for the Coronavirus Job Retention Scheme might be able to access the other support Government is providing, including the Coronavirus Business Interruption Loan Scheme, the Bounce Back Loans Scheme for small businesses, and the deferral of tax payments. More information about the full range of business support measures is available at?www.businesssupport.gov.uk/coronavirus-business-support/
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential effect of making it his policy to (a) reduce and (b) abolish Entrepreneurs' Relief on (i) incentives for entrepreneurs to start and build up new businesses for ultimate profitable sale, (ii) decisions being taken by entrepreneurs to locate new businesses in the UK in preference to other countries and (iii) financial outcomes for retiring entrepreneurs.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government’s manifesto set out its intention to review and reform Entrepreneurs’ Relief. Any changes to the tax system, including any reform of Entrepreneurs’ Relief, will be set out in the Budget on 11 March.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 February 2020 to Question 18428 on War Widows: War Pensions, whether it is a requirement of the estimated 265 war widows whose pensions were withdrawn on remarriage to (a) divorce and (b) divorce and remarry (i) their husband and (ii) a different person; and if he will publish the alternative methods his Department is examining to resolve this situation.
Answered by Steve Barclay
In 2014, the Government made prospective changes to the Armed Forces Pension Scheme (AFPS) and War Pension Scheme (WPS). These provided that any Military Widow(er) who remarried or cohabited from 1 April 2015 onwards would retain their pension for life. There was no underlying assumption that those who had lost their pension on remarriage or cohabitation prior to these reforms should divorce or separate from their partner.
The Government currently has no plans to reinstate war widow(er)s pensions with retrospective effect. The Government’s policy presumption is that changes will not be made retrospectively. This policy is the foundation for keeping public service pensions sustainable.
‘Pensions for life’ for surviving widow(er)s and civil partners were introduced across most public service pension schemes from the late 1990s to the late 2000s, with prospective effect. Existing members of pension schemes who were accruing pensions were usually given the option to remain on former schemes or move across to new schemes.
Survivors’ pension entitlements are still subject to cessation if the survivor remarries or cohabits under the rules of many legacy public service pension schemes. Examples of such schemes are: the Principal Civil Service Pension Scheme ‘Classic’ section, the Police Pension Scheme 1987, the Firefighters’ Pension Scheme 1992, and, for members whose service ended before April 2008, the NHS Pension Scheme 1995 section and, for members whose service ended before 2007, the Teachers’ Pension Scheme.