Asked by: Karin Smyth (Labour - Bristol South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his Department's policy paper VAT and the Public Sector: Reform to VAT Refund Rules, published on 27 August 2020, whether he plans to implement changes to the VAT regime for NHS (a) trusts and (b) foundation trusts considering establishing wholly owned subsidiary companies.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The 2020 policy paper published by HM Treasury set out the case for a Full Refund Model for public bodies currently eligible for VAT refunds under Section 41 of the VAT Act, to simplify the VAT system for public bodies and enhance public sector productivity. Please find the published paper on the GOV.UK website here: https://www.gov.uk/government/publications/vat-and-the-public-sector-reform-to-vat-refund-rules.
We are continuing to consider the practicalities of any reform and no decisions have been made on whether to proceed. We will update on next steps in due course.
Asked by: Karin Smyth (Labour - Bristol South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to implement VAT changes for colleges, similar to those implemented for schools and academies.
Answered by John Glen
Local Authority (LA) maintained schools are able to reclaim any VAT incurred on the costs of the provision of education through a refund scheme provided under section 33 of the VAT Act 1994. This ensures that the burden of VAT does not fall on local taxation. Academies and free schools are covered by the section 33B VAT refund scheme; this is to ensure that institutions leaving LA control are not at a financial disadvantage due to their change in status.
Sixth form colleges and further education colleges are not included in the section 33B refund scheme. Like many other providers of public services, they are expected to cover their VAT costs from their funding allocations. Sixth form colleges have the choice to restructure as academies, enabling the recovery of VAT under the refund scheme, but many choose not to.
While the Government keeps all taxes under review, there are no current plans to change these provisions.
Asked by: Karin Smyth (Labour - Bristol South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of his proposals for tax in the Autumn Statement 2022 on women.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
In line with the Public Sector Equality Duty, the Government carefully considers the equality impacts of policies on those sharing protected characteristics, including sex, in line with both its legal obligations and its strong commitment to fairness.
The Treasury and HMRC publishes equality impacts in summary form for tax measures in Tax Information and Impact Notes (TIINs) alongside Finance Bills.
Asked by: Karin Smyth (Labour - Bristol South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support low-income households which do not receive means tested benefits.
Answered by John Glen
In 2022-23, the government is helping all domestic electricity customers with the impact of rising energy prices, with £400 off their bills through the Energy Bills Support Scheme. The Energy Price Guarantee (EPG) will cap the unit price households pay for electricity and gas saving the typical household around £900 this winter.
The government is providing a £150 non-repayable Council Tax Rebate for around 80 per cent of households in England, delivered as a payment to households in Council Tax Bands A-D, as announced in February.
The 12-month cut in fuel duty from March 2022 will support businesses and families with the cost of transport – worth savings for consumers of almost £2.4 billion.
In 2023-24, the £3,000 Energy Price Guarantee will save the average household £500. The government is also providing another £1 billion funding to enable an extension to the Household Support Fund over 2023-24, which will continue to support English Local Authorities in delivering local welfare to vulnerable households.
From 1 April 2023, the National Living Wage will increase by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase worth over £1,600 to the annual earnings of a full-time worker on National Living Wage.