Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with credit card companies to ask them to suspend the charging of fees on balances while the restrictions in response to covid-19 are in place; and if he will make a statement.
Answered by John Glen
On 17 March, the Government announced a package of measures aimed at supporting the financial wellbeing of British businesses, individuals, and families. The Government recognises that the outbreak of COVID-19 may lead to consumers facing financial difficulty and uncertainty. Therefore, we have acted to support customers who may find it challenging to make mortgage or credit payments and may require access to further credit. The major banks and building societies have pledged to provide relief to customers impacted by COVID-19, including deferring mortgage and other loan repayments, waiving fees on savings accounts and increasing overdraft or credit card limits.
The Government is committed to doing whatever it takes to get our nation through the impacts of COVID-19 and is working closely with the Financial Conduct Authority (FCA) and industry, including credit card companies, on a number of financial services issues. The Government stands ready to announce further action wherever necessary.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with representatives of retail banks on not increasing interest levels on overdrafts during the covid-19 outbreak; and if her will make a statement.
Answered by John Glen
The Treasury is working closely with industry and the financial regulators to ensure the steps they take are properly coordinated with Government’s wider economic response to COVID-19.
Banks and building societies are ready and able to offer support to their customers who are impacted directly or indirectly by COVID-19. The Government encourages anyone concerned about their overdraft to contact their provider.
Last June, the FCA announced reforms to the overdraft market, including mandating that firms cannot charge more for unarranged overdrafts than arranged overdrafts, banning fixed daily and monthly charges, and a package of measures to improve the transparency of pricing. Overall the FCA expects these changes to make overdrafts simpler, fairer, and easier to manage and will protect the millions of consumers that use overdrafts, particularly more vulnerable consumers. All providers have set their new charging structures ahead of the deadline in April.
The overdraft reforms will end high unarranged charges and the removal of fees means many occasional arranged borrowers will pay less even though their headline rate of borrowing may increase. Across the market, FCA analysis in January found that 7 out of 10 overdraft users will be better off or see no change when the new rules come into force in April.
In instances where consumers see an increased cost for their overdraft borrowing, the FCA expects firms to engage with customers with large overdraft balances and repeat users of overdrafts to make appropriate interventions. This includes customers who are impacted by COVID-19.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether self-employed people will be able to access the grants and loans announced in response to the covid-19 outbreak; and if he will make a statement.
Answered by John Glen
The government has always said that the best way to support freelancers and the self-employed through this crisis is through the welfare system. Since 20 March they have been able to benefit from changes such as the £20 increase in the Universal Credit standard allowance and the uprating of Local Housing Allowance. The government is temporarily relaxing the Minimum Income Floor for all self-employed UC claimants for the duration of the outbreak. This means a drop in earnings due to sickness or self-isolation or as a result of the economic impact of the outbreak will be reflected in claimants’ awards. Self-employed people unable to work because they are directly affected by Covid-19 or self-isolating will also be eligible for Contributory Employment and Support Allowance. As announced at Budget, this is now payable from the first day of sickness, rather than the eighth. The Coronavirus Business Interruption Loan Scheme is available to self-employed individuals with an eligible business entity. People who are self-employed or own a business and are concerned about not being able to pay their tax bills because of Covid-19 should contact Her Majesty’s Revenue and Customs’ (HMRC) dedicated Time to Pay service.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase financial support for businesses affected by flooding and covid-19 outbreak; and if he will make a statement.
Answered by John Glen
At Budget, the Chancellor announced a record funding for flood defences between 2021 and 2027, offering better protection from flooding for 336,000 homes and non-residential properties. Additional funding of £200 million will help communities most at risk of flooding recover faster in cases where they are affected by flood damage. Alongside this, the Chancellor has announced an unprecedented package of support for businesses affected by the covid-19 outbreak, including that all businesses eligible for Small Business Rates Relief and Rural Rates Relief would receive a grant of £10,000 each to help with the impact of Covid-19. Details of this package are available at: www.businesssupport.gov.uk
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to prevent businesses engaging in excessive profiteering during the covid-19 outbreak.
Answered by Steve Barclay
This is first and foremost a public health emergency but the coronavirus is having a significant impact on people’s lives and on our economy. The government has announced an unprecedented package of measures to support jobs, incomes and businesses, and will do whatever it takes to get our nation through this crisis. At the same time, the government expects businesses to play their part too, to act responsibly and not seek to make excessive profits. The Competition and Markets Authority have launched a Covid-19 taskforce to monitor the market and enable them to intervene as quickly as possible where required.
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 (a) business rates and (b) VAT for businesses which can demonstrate loss of trade as a result of covid-19.
Answered by Jesse Norman - Shadow Leader of the House of Commons
In response to COVID-19, on 17 March the Government introduced a 12 month business rates holiday for all eligible retail, leisure and hospitality businesses in England, where help is needed the most. Eligible businesses large and small will benefit from this exceptional step worth an additional £9.5bn in 2020-21.
HMRC already offer help to businesses struggling to meet their VAT payments with arrangements such as Time to Pay.
In light of the COVID-19 outbreak, the Chancellor has pledged a range of measures to help business through the crisis, including grants, loans and relief from business rates worth more than £300 billion. The Chancellor will continue to keep the situation under review.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reduce employer national insurance contribution rates for businesses that can demonstrate loss of trade as a result of covid-19.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
UK VAT registered businesses, including charities, can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. They will have until the end of the financial year to repay.
The Government will also give all eligible retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months. The Government also extended the support available to individuals and businesses, including a package of government-backed and guaranteed loans, which make available an initial £330 billion of guarantees – equivalent to 15% of GDP.
For Income Tax Self-Assessment, payments due on the 31st of July 2020 will be deferred until the 31st of January 2021.
Under the Coronavirus Job Retention Scheme, employers (including charities) can put workers on temporary leave and the government will pay them cash grants of 80% of their wages up to a cap of £2,500 a month, providing they keep the worker employed. They will receive the grant from HMRC, covering the cost of wages backdated to 1 March 2020.
Statutory Sick Pay (SSP) will be available for those unable to work because they are self-isolating in line with government advice; this is on top of the Prime Minister’s announcement that SSP will be payable from day 1 instead of day 4 for affected individuals. Support will be available through Universal Credit and Contributory Employment and Support Allowance for those not eligible for SSP.
HMRC have scaled up their Time to Pay offer to all taxpayers, including charities, who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. Taxpayers can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has of the additional revenue that will accrue to the public purse as a result of his proposed IR35 changes; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC’s latest assessment of the additional revenue as a result of the changes to the off-payroll working rules is set out in Table 2.2 of Budget 2020.
HMRC are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform.