Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much his Department has spent on external consultants in each of the last five years; and if he will publish a breakdown of the (a) amount paid to each consultancy contracted, (b) name of each consultancy contracted and (c) specific matters on which they were consulted.
Answered by Alan Mak
HM Treasury’s spend on consultancy is published and available for viewing within the Annual Report and Accounts. We have included the links to the published Annual Report and Accounts for each of the available years in question within the table below. The amount paid, names & specific contract details of all contracts issued for consultancy can be found using the Gov.Uk contracts finder (link included below).
Contract Finder - Contracts Finder - GOV.UK (www.gov.uk)
Financial Year | Publication Link | Page Reference |
2017-18 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2017-to-2018 | Page 89 |
2018-19 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2018-to-2019 | Page 99 |
2019-20 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2019-to-2020 | Page 104 |
2020-21 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2020-to-2021 | Page 101 |
2021-22 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2021-to-2022 | Page 127 |
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 31 March 2022 to Question 148399, on Car Allowances, and in the context of the recent increase in fuel prices, whether he has plans to (a) review and (b) change the mileage rate authorised by HMRC.
Answered by Simon Clarke
The Approved Mileage Allowance Payments (AMAP) rates aim to reflect the running costs of a car including fuel, servicing and depreciation.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse the actual cost incurred. Where individuals can provide evidence of the expenditure, no Income Tax or National Insurance charge arises.
The Government keeps all taxes, including AMAP rates under review. Any changes are considered by the Chancellor.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to (a) review and (b) change the mileage rate authorised by HMRC.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens. AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rate.
Employers are not required to use the AMAPs rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that better reflects their employees’ circumstances. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
The Government keeps this policy under review.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer 28 February 2022 to Question 125532, on Energy: VAT, what assessment his Department has made of the amount by which (a) VAT and (b) fuel consumption will reduce as a result of the increase in fuel prices.
Answered by Lucy Frazer
As set out in the answers to PQ UIN 125532 and PQ UIN 129256, high energy prices reduce VAT revenues.
In recognition that families should not have to bear all the VAT costs they incur to meet their energy needs, domestic fuels such as heating oil, gas and electricity are subject to the reduced rate of 5 per cent of VAT. If people spend more on domestic fuels where VAT is 5 per cent, they spend less on goods and services that on average have a much higher VAT rate, thereby reducing VAT revenue overall.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 March 2022 to Question 129256, what assessment his Department has made of whether VAT revenues will increase or decrease as a result of rises in energy prices.
Answered by Lucy Frazer
As set out in the answers to PQ UIN 125532 and PQ UIN 129256, high energy prices reduce VAT revenues.
In recognition that families should not have to bear all the VAT costs they incur to meet their energy needs, domestic fuels such as heating oil, gas and electricity are subject to the reduced rate of 5 per cent of VAT. If people spend more on domestic fuels where VAT is 5 per cent, they spend less on goods and services that on average have a much higher VAT rate, thereby reducing VAT revenue overall.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if will make an estimate of the potential level of revenues to the Exchequer in (a) 2017-18, (b) 2018-19, (c) 2019-20, (d) 2020-21 and (c) 2021-22 based on a rate of (i) 5 percent, (ii) 4 percent, (iii) 3 percent, (iv) 2 percent, (v) 1 percent and (vi) 0 percent for VAT on fuel.
Answered by Lucy Frazer
HMRC publishes estimates of the cost to the Exchequer of the current 5 percent reduced rate of VAT on supplies of domestic fuel and power:
https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs
The estimates shown in the published table represent the cost of the 5 per cent reduced rate compared to the 20 per cent standard rate, a relief of 15 per cent. Estimates of the additional revenue cost of rates below 5 per cent can be derived by taking the respective proportions of the current cost, as shown in the table below:
Reduced rate of VAT on supplies of domestic fuel and power | |||||
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
£ million | Forecast | ||||
Cost of current 5 per cent reduced rate | 4,700 | 4,700 | 5,000 | 4,500 | 5,200 |
Additional revenue cost of 4 per cent rate | 300 | 300 | 300 | 300 | 300 |
Additional revenue cost of 3 per cent rate | 600 | 600 | 700 | 600 | 700 |
Additional revenue cost of 2 per cent rate | 900 | 900 | 1,000 | 900 | 1,000 |
Additional revenue cost of 1 per cent rate | 1,300 | 1,300 | 1,300 | 1,200 | 1,400 |
Additional revenue cost of 0 per cent rate | 1,600 | 1,600 | 1,700 | 1,500 | 1,700 |
These estimates are based on economic statistics on household expenditure on domestic fuel and power, as published by the Office for National Statistics. HMRC is unable to produce estimates based on VAT return data because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the potential additional value to the Exchequer of VAT on fuel arising from the expected increase in energy prices from April 2022.
Answered by Lucy Frazer
High energy prices reduce VAT revenues. In recognition that families should not have to bear all of the VAT costs they incur to meet their needs, domestic fuels such as gas and electricity are already subject to the reduced rate of 5 per cent of VAT. If people spend more on energy where VAT is 5 per cent, they spend less on goods and services that have on average a much higher VAT rate, thereby reducing VAT revenue overall.
The Government is providing significant financial support – up to £350 – to the majority of households, which will cover more than half of the forecast £700 rise in energy bills for the average household. This support is worth £9.1 billion in 2022-23.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 February 2022 to Question 125532 on Energy: VAT, if he will make an estimate of the potential increase in the tax take through VAT on household energy bills by October 2022.
Answered by Lucy Frazer
As set out in the answer to PQ UIN 125532, high energy prices reduce VAT revenues.
In recognition that families should not have to bear all the VAT costs they incur to meet their needs, domestic fuels such as gas and electricity are already subject to the reduced rate of 5 per cent of VAT. If people spend more on energy where VAT is 5 per cent, they spend less on goods and services that on average have a much higher VAT rate, thereby reducing VAT revenue overall.