Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has contracted work to a business named in round 18 of the National Minimum Wage Naming Scheme within the last three years.
Answered by James Cartlidge - Shadow Secretary of State for Defence
HMT are unable to identify any spend in relation to the businesses named in round 18 of the National Minimum Wage Naming Scheme within the last 3 years.
All employers need to pay their staff correctly. Paying the minimum wage is not optional, it’s the law. Under the National Minimum Wage Naming Scheme, employers who have previously broken minimum wage law can be publicly named.
Details of Government contracts above £10,000 are published on Contracts Finder: https://www.contractsfinder.service.gov.uk/Search
Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing VAT reductions or subsidies for businesses in the hospitality sector.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors, which were severely affected by COVID-19. The relief, which ended on 31 March 2022, cost over £8 billion.
All taxes are kept under review, but the Government has been clear that this was a temporary measure in response to COVID-19. It was appropriate that as restrictions were lifted and demand for goods and services in these sectors increased, the temporary VAT relief was first reduced and then removed in order to rebuild and strengthen the public finances.
Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing of a moratorium on interest rate rises for mortgage prisoners.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Financial Conduct Authority’s review into mortgage prisoners, published in November 2021, found that the population of mortgage prisoners is varied and complex. There is no single measure to address the circumstances of this population of mortgage holders.
The pricing of mortgages is a commercial decision for lenders in which the Government does not intervene. It is worth noting, however, that interest rates are rising across the world as countries manage rising prices largely driven by the COVID-19 pandemic and Putin’s illegal invasion of Ukraine.
The Government understands that people across the UK are worried about the cost of living, and are seeing their disposable incomes decrease as they spend more on the essentials. That is why we have announced £37 billion of support for the cost of living this financial year. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.
If mortgage borrowers do fall into financial difficulty, Financial Conduct Authority (FCA) guidance requires firms to provide support through tailored forbearance options. 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: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential implications for his policies towards mortgage prisoners of the report by the Financial Conduct Authority entitled Mortgage Prisoner Review, published on 29 November 2021, in the context of recent increases in mortgage interest rates.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Financial Conduct Authority’s review into mortgage prisoners, published in November 2021, found that the population of mortgage prisoners is varied and complex. There is no single measure to address the circumstances of this population of mortgage holders.
Where 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. 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.
More broadly on cost-of-living support, the Government has 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.
Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential impact of increases in the cost of living on mortgage prisoners.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Financial Conduct Authority’s review into mortgage prisoners, published in November 2021, found that the population of mortgage prisoners is varied and complex. There is no single measure to address the circumstances of this population of mortgage holders.
Where 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. 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.
More broadly on cost-of-living support, the Government has 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.
Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing an alternative tax arrangement for payments made by employers to help support their employees with increases in the cost of living.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Government understands that people across the UK are worried about the cost of living, and has taken decisive action to get households and businesses through this winter and the next.
Introducing a tax relief on bonuses or discretionary payments could risk tax avoidance in circumstances where individuals are able to set artificially low contracted hours in order to benefit from additional tax-free payments.
The Government remains committed to managing the public finances in a disciplined and responsible way by targeting support where it is most needed. Tax reliefs are difficult to target in this way; they are of greatest benefit to those paying higher rates of tax while low-earning individuals benefit less or not at all.
Asked by: Justin Madders (Labour - Ellesmere Port and Bromborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish his planned timetable for the introduction of the (a) Financial Services and Markets Bill and (b) provisions to protect neighbourhood access to cash.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
As announced in the Queen’s Speech on 10 May, the government is committed to legislating to protect access to cash as part of the Financial Services and Markets Bill. The Bill will be introduced when parliamentary time allows.