Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with the Secretary of State for Health and Social Care on funding for the construction of a new hospital building at the Leeds General Infirmary.
Answered by John Glen
At Spending Review 2020, the New Hospitals Programme received £3.7bn of funding up to 2024/25. At the Autumn Statement, the Government reaffirmed its commitment to the New Hospitals Programme, which includes Leeds General Infirmary.
I have not discussed the specifics of this case with the Secretary of State, though I look forward to discussions with him about the New Hospitals Programme, and wider health policy issues, in the coming weeks and months as part of the Treasury’s ongoing engagement with DHSC on these matters.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of removing VAT on defibrillators.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Automated External Defibrillators (AED) save lives, which is why the Government has taken action to boost their provision. The Government provides support to aid the purchase of AEDs through VAT refunds on purchases made by local authorities and VAT reliefs for purchases made through voluntary contributions, where the AED is donated to eligible charities or the NHS. Otherwise, they attract the standard rate of VAT.
The Government is continuing to look at what more can be done. The Department of Health and Social Care are examining whether there are ways to further expand public access to defibrillators.
Introducing any new VAT reliefs would come at a cost to the Exchequer and any changes should be seen in the context of over £50 billion worth of requests for relief from VAT received since the EU referendum. Given this, there are no plans to change the current VAT treatment on defibrillators. However, the Government keeps all taxes under constant review.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential (a) financial and (b) other implications of the Making Tax Digital reforms on foster carers; and if he will meet affected groups to discuss this issue.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Making Tax Digital (MTD) reforms aim to preserve the existing Income Tax easements for carers, whilst ensuring the wider benefits of MTD are realised.
Whether a carer is within the scope of MTD depends on if their income from caring exceeds their allowance for Qualifying Care Relief, as well as the MTD for Income Tax threshold.
All existing Income Tax easements for foster carers, such as where carers completing a tax return do not have to report expenses from caring, will apply to MTD as well.
The Government has committed to ensuring there are free software products for the smallest businesses with straightforward affairs.
HMRC will continue to engage with foster carers and their representative bodies.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment HMRC has made of the potential merits of increasing the Advisory Electricity Rate paid to owners of electric vehicles, in the context of rising electricity costs.
Answered by Felicity Buchan
The Government introduced the Advisory Electric Rate (AER) in 2018. It applies to employees who use a fully electric vehicle as a company car.
The Advisory Electric Rate (AER) was changed in December 2021 from 4 pence per mile (ppm) to 5ppm. This was calculated using published consumption rates, adjusted to reflect real driving conditions, and the average cost of electricity.
However, employers are not required to use the AER. Instead, they can use different rates to reflect their employee’s circumstances. Provided they can show that the bespoke rates do not result in a profit for the employee, there will be no tax to pay. Otherwise, when employers reimburse employees at a higher rate than the published AER (5ppm), the excess is subject to Income Tax and NICs.
The Government keeps this policy under review.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of a tax rebate on diesel fuel on the road and haulage industry.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
In recognition of high prices at the pump and the fact that fuel represents a major cost for households and businesses, including those in the road and haulage industry, the Chancellor announced at the Autumn Budget 2021 that fuel duty would remain frozen for a twelfth consecutive year.
A freeze already represents a cut in real terms, and means that the average HGV tank will cost around £130 less in fuel duty, compared to what would have been paid under the pre-2010 escalator.
All taxes, including fuel duty, remain under review.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending a reduced rate of VAT for the tourism sector; and what steps his Department is taking to provide financial support to that sector.
Answered by Lucy Frazer
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. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. The sector can continue to benefit from this relief until 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced, and then removed, in order to rebuild and strengthen the public finances.
Asked by: Kim Leadbeater (Labour - Spen Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the British Retail Consortium during the Government's Fundamental Review into business rates.
Answered by Lucy Frazer
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel.