Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help protect people from rises in mortgages rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Around 75% of residential mortgage borrowers are on fixed-rate deals and are therefore shielded from interest rate rises in the short term.
However, the Government has already taken immediate action to help households through the Energy Price Guarantee and the Energy Bills Support Scheme. This is in addition to the £37 billion of targeted support for the cost of living this financial year.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, Financial Conduct Authority guidance requires firms to provide support through tailored forbearance options. This could include measures such as a payment holiday, partial payment, or an extension of mortgage term.
The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much annual revenue his Department generates from VAT on electric vehicle charging points.
Answered by Richard Fuller
The information requested is not available. HMRC does not hold information on VAT revenue from specific products or services, including VAT on public electric vehicle charging points. This is because businesses are not required to provide figures at a product level within their VAT returns, as this would impose an excessive administrative burden.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department will take to fund the proposed energy price freeze in the event that economic growth does not reach expected levels.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
As stated in response to a similar previous question, the Energy Price Guarantee will be funded by the government to support households and businesses with the cost-of-living challenge in the short term. To address the longer-term problem of rising energy costs, the government will be making significant interventions in the energy market over the coming months.
The government is committed to fiscal discipline and the Chancellor will set out the government’s Medium-Term Fiscal Plan on the 31st of October 2022. This will be delivered alongside an economic and fiscal forecast by the independent Office for Budget Responsibility, which will take account of the policies in the Medium-Term Fiscal Plan.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has assessed the potential impact of a depreciating currency on pension funds.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Financial market movements are determined by a wide range of domestic and international factors. It is not appropriate for the government to comment on specific currency market movements or the impact on different sectors of the economy.
We continue to work closely with the Bank of England, Financial Conduct Authority, Debt Management Office and others to monitor markets.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of a depreciating level of currency on pension funds.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Financial market movements are determined by a wide range of domestic and international factors. It is not appropriate for the government to comment on specific currency market movements or the impact on different sectors of the economy.
We continue to work closely with the Bank of England, Financial Conduct Authority, Debt Management Office and others to monitor markets.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reintroducing mortgage interest relief at source.
Answered by Richard Fuller
There are a wide range of factors to take into consideration when introducing a relief. Landlords are already able to claim tax relief on finance costs for their rental property. For unincorporated landlords, this can be claimed at the basic rate of Income Tax.
While the Government has no current plans to reintroduce Mortgage Relief at Source, as with all aspects of the tax system, the Government keeps tax reliefs under review and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce targeted cost of living support for people who do not qualify for any form of benefit but are under state pension age.
Answered by Edward Argar - Minister of State (Ministry of Justice)
The government understands that people across the UK are worried about the rising cost of living, and has taken decisive action to get households and businesses through this Winter and the next, while ensuring action in a fiscally responsible way.
The government has already announced £37 billion of support for this financial year. This includes one-off Cost of Living Payments for millions of the most vulnerable households – including low-income households eligible for means-tested benefits, people with a disability, and pensioners.
However, all households have been feeling the pressure of rising energy prices and it is right that the government steps in to help everyone. That is why the government has announced the Energy Price Guarantee, which means that a typical UK household will have to pay bills equivalent to no more than £2500 a year on their energy bills this winter.This comes in addition to the £400 discount already announced through the Energy Bills Support Scheme.
For households that are not eligible for one-off Cost of Living Payments or for families that need additional support, the government has provided £1.5 billion total funding towards the cost of essentials, including a further six-month extension to the Household Support Fund from October 2022 to March 2023. The fund is distributed by Local Authorities in England through small payments to support vulnerable households to meet daily needs such as food, clothing, and utilities.Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to ensure it can fund a freeze on the cost of energy if the level of future economic growth is lower than predicted levels.
Answered by Chris Philp - Minister of State (Home Office)
The government has set out decisive action to support people and businesses with their energy bills this winter and next. The scale of the global energy crisis means higher borrowing will be necessary to pay for the temporary support. It is right that we use the tools available to support households through this crisis and spread the costs over time.
It is right to use our borrowing powers in the short-term in order to prevent long-term economic damage as we support families and businesses with rising costs.
The government’s plan is to increase the trend rate of growth over the long run. The Medium-Term Fiscal Plan, which will be published on 23 November, is a key pillar of the governments growth plan and will set out further details on the fiscal rules, including ensuring that debt falls as a share of GDP in the medium term.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will take steps to ensure that childcare vouchers purchased through an employer-run scheme are refundable if (a) employment and (b) childcare circumstances change.
Answered by Chris Philp - Minister of State (Home Office)
Childcare Vouchers are now closed to new entrants and the Government has no plans to reopen or reform them. Existing customers can continue to use them as long as they remain with their current employer, the employer continues to offer Vouchers, and their contract of employment remains the same.
Parents can seek to get a refund from their employer for their unused Childcare Vouchers. However, there is no obligation for the employer to make a refund.
If the Voucher provider is unable or unwilling to provide recompense, they might be able to use the Childcare Vouchers for other forms of childcare. Some childcare providers do accept them towards the cost of holiday clubs and a range of after-school activities.
Asked by: Julian Sturdy (Conservative - York Outer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the average financial cost for small businesses of following the Making Tax Digital rules.
Answered by Richard Fuller
I refer the hon. Member for York Outer to the answer that was given on the 8 February 2022 to the Question UIN 116919.
HMRC’s assessment of impacts on businesses was shown in the Tax Information and Impact Note published on 23 September 2021:
HMRC has undertaken significant engagement with business and accountancy representative bodies, as well as software developers, to understand the associated costs of Making Tax Digital mandation.
Additional detail offering a more detailed look at the cost implications was published on 23 September 2021 here: www.gov.uk/government/publications/customer-costs-and-benefits-for-the-next-phases-of-making-tax-digital.