Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will defer the payment of NICs and PAYE for hospitality businesses to the end of 2021 to help support them in the context of covid-19 restrictions.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has delivered support to the hospitality sector through the Coronavirus Job Retention Scheme (CJRS) which has been extended until April; Government-backed finance through loan schemes and ‘Pay as You Grow’ long-term repayment options; a temporary VAT cut; a VAT deferral and the VAT New Payment Scheme to spread the deferred VAT; the Eat Out to Help Out Scheme; a 12-month business rates holiday; and a moratorium on evictions to protect commercial tenants. In January, the Chancellor announced further grant funding for businesses affected by restrictions.
Businesses affected by the pandemic have access to the CJRS to cover their furloughed employees’ wages. There were 1.65 million accommodation and food services sector employees furloughed at the peak on 10 April. Provisional figures show that the number of employees furloughed for this sector stood at 1.04 million at 31 December. In line with normal practice for benefits or grants that replace income, individuals pay Income Tax and National Insurance on any payments received through this scheme as they are a replacement for income. Employers also continue to pay employer National Insurance Contributions on wages.
If any business is experiencing temporary financial difficulties and they need more time to pay their tax, they can contact HMRC on the COVID-19 dedicated helpline to agree a Time to Pay (TTP) arrangement to spread their tax payments. These arrangements are bespoke and flexible, covering all taxes, and are based on how much the business can afford to pay. TTPs have proven effective at supporting businesses through temporary difficulties, with 90% of taxpayers making agreed instalments and paying off their debt as agreed in the TTP arrangement.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will delay the introduction of the IR35 changes to 1 April 2022 following the effects on business of the covid-19 pandemic.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has been clear that the reform of the off-payroll working rules will be introduced on 6 April 2021. Organisations should continue to prepare for the implementation of the reform. Since the reform was delayed in April 2020, Parliament has passed legislation enacting the reform from April 2021.
Many organisations have already undertaken significant preparations to ensure they are ready for the reform and HMRC are committed to supporting organisations and individuals in the run up to, and beyond the reform being implemented. HMRC are providing webinars, workshops and one-to-one calls as well as publishing updated guidance and factsheets in order to enable organisations to prepare.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide financial support for businesses which are not required to close under covid-19 restrictions but are experiencing a loss of trade as a result of the covid-19 outbreak; and if he will make a statement.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Since March the Government’s priority has been to save lives and protect jobs, businesses, and livelihoods. The Government has supported people and businesses via an unprecedented package of financial support worth more than £280 billion.
The Coronavirus Job Retention Scheme (CJRS) has supported businesses by helping to pay the wages of people in 9.9 million jobs across the UK. It is open until the end of April 2021.
Businesses can continue to apply for loans under a number of business loan schemes, including the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and Coronavirus Large Business Interruption Loan Scheme, until the end of March 2021. Over 1.4 million small and medium sized companies have received government-backed loans, worth over £68 billion.
Businesses forced to close as a result of the current England-wide restrictions are eligible for one-off grants of up to £9,000 on top of existing monthly grants under the Local Restrictions Support Grant (Closed). In addition, however, England’s local authorities have received a top-up worth £500m to their allocation from the Additional Restrictions Grant (ARG), which has already provided local authorities with £1.1 billion.
This funding ensures that local authorities can make discretionary grants to businesses which are not eligible for the LRSG (Closed) but which are nonetheless experiencing a severe impact on their business due to the national lockdown. Local authorities will run application schemes for the ARG, including for the £500m top-up, and will have significant discretion when it comes to deciding which businesses receive payments. Business grant policy is a fully devolved area, but the Devolved Administrations will receive their share of this funding through the Barnett formula in the usual way.
This support comes on top of billions of pounds’ worth of Rate Reliefs, tax deferrals, and other labour market schemes.
The Chancellor made a Statement on the economy and comprehensive economic plan on 11 January and will set out the next phase of the plan to protect jobs in the Budget on 3 March 2021.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the furlough scheme to enable people who are suffering from cancer to remain at home.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government recognises that COVID-19 has posed significant challenges for those suffering with cancer.
The Government has put in place unprecedented levels of income support to help people deal with the financial consequences of COVID-19. This does not just include the Coronavirus Job Retention Scheme, but also the Self-Employment Income Support Scheme, changes to Statutory Sick Pay, and the £9.3bn which the OBR estimates that the Government has injected into the welfare system.
The Chancellor announced on 12 May that the CJRS scheme will be extended until October. Before 30 June, any employee could be furloughed, including those suffering from cancer. From 1 July, an employee can only continue to be furloughed if they have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
For those required to shield after 1 August, they will receive a letter or notification advising them of this, and they will continue to be eligible for Statutory Sick Pay on the basis of their shielding status.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the cost to the public purse of (a) furlough and (b) loss of tax revenue as a result of casinos remaining closed during the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Office for Budget Responsibility (OBR) has published estimates of the cost of the Coronavirus Job Retention Scheme (CJRS). The latest OBR estimates are available in the OBR’s coronavirus policy monitoring database, which can be found at: https://obr.uk/coronavirus-analysis/#pm.
An estimate of CJRS payments made to casinos and an assessment of the loss of tax revenue as a result of casinos remaining closed during the covid-19 outbreak is not available.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the amount of revenue to the public purse generated from casinos; and what assessment he has made of the importance of the contribution of casinos to the UK's economic recovery.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Gaming Duty paid by casinos raises around £220 million in revenue for the Exchequer per year.
The Government recognises the economic contribution the sector makes and has provided a package of measures to support businesses, including casinos, as announced by the Chancellor on 17 and 26 March. This includes a business rates holiday for businesses in the retail, hospitality and leisure sectors, the Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme, which provides loans of up to £5 million for SMEs through the British Business Bank, backed by an 80% government guarantee.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce further financial support for retail businesses with lower level of trade than before the covid-19 outbreak; and if he will make a statement.
Answered by Kemi Badenoch - Leader of HM Official Opposition
On 11 May the Government published its COVID-19 recovery strategy which sets out our plan for moving to the next phase of our response. The strategy sets out a cautious roadmap for easing existing measures in a safe and measured way. Our aim is that all non-essential retail will be able to reopen by 15 June if the Government’s five tests are met and they follow the COVID-19 secure guidelines. The roadmap will be kept constantly under review, and we will continue to work hard to support business and workers as the situation evolves.
Retail businesses continue to have access to a range of government support measures including:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with hon. Members and the Equitable Members Action Group on providing further compensation to victims of the collapse of Equitable Life; and if he will make a statement.
Answered by John Glen
There are no plans to reopen the Payment Scheme or review the £1.5 billion funding allocation previously made to it. The Equitable Life Payment Scheme closed to claims in 2015 and further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will further extend the start date of the furlough scheme to employees who were on their employees payroll after the 19 March 2020 to enable people who started new jobs towards the end of March 2020 to be furloughed; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
On 15 April, the Government announced it would extend the cut-off date for the CJRS to 19 March, to include employees whose payroll information was notified to HMRC by 19 March. Processing claims for the Coronavirus Job Retention Scheme in cases where HMRC did not have RTI data by 19 March would require much greater manual handling by HMRC, which would significantly slow down the system while risking substantial levels of fraud. It would also require greater resource for HMRC when they are already under significant pressure to deliver the system designed. Those not eligible for the scheme may be able to access the other support Government is providing, including a package of temporary welfare measures and up to three months’ mortgage payment holidays for those struggling with their mortgage payments.