Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to reform the business rates system in England.
Answered by Lord Agnew of Oulton
On 21 July, HM Treasury published a Call for Evidence for the fundamental review of business rates. The Call for Evidence invites stakeholders to contribute their views on ideas for reform on all elements of the business rates system and on alternative taxes.
As set out in the Call for Evidence, the fundamental review will conclude in Spring 2021.
The Call for Evidence can be found at:
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the COVID-19 pandemic on the future cost of business rates; and what plans they have to support businesses to afford any increase in those rates.
Answered by Lord Agnew of Oulton
As part of its package to support businesses affected by COVID-19, the Government has provided a business rates holiday for eligible properties in retail, hospitality and leisure, worth £10 billion this year.
The Government has also postponed the next business rates revaluation until April 2023, in order to ensure that the revaluation better reflects the impact of COVID-19.
In addition, HM Treasury is conducting a fundamental review of business rates and invites stakeholders to contribute their views on all elements of the business rates system, including any future reliefs.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the resilience of the credit union sector.
Answered by Lord Agnew of Oulton
Credit unions play a vital role in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders. The Government is committed to seeing a strong and resilient credit union sector. That is why the Chancellor announced at Budget 2020 that the Government will bring forward legislation to enable credit unions to offer a wider range of products and services.
HM Treasury officials are working closely with the Prudential Regulation Authority, Financial Conduct Authority and sector representatives to monitor the impact of the disruption caused by COVID-19 on credit unions and their members.
The Economic Secretary to the Treasury has also engaged regularly with representatives from the credit union sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which are bringing financial services and consumer group representatives together to discuss how to best support people through this period.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the role credit unions have played in supporting vulnerable people during the COVID–19 pandemic.
Answered by Lord Agnew of Oulton
The Government recognises the contribution credit unions have made to support vulnerable people during the Covid-19 pandemic. Credit unions play a vital role in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders.
The Centre for Community Finance Europe (CFCFE) published research in May 2020, setting out the range of activities credit unions have undertaken to support their local communities during the Covid-19 pandemic, including adapting existing services and introducing new products. The research is available on the CFCFE website.
In April 2020, the Economic Secretary to the Treasury wrote to credit union trade bodies to thank frontline credit union staff for their efforts to continue to provide essential services to their members. Furthermore, the Economic Secretary has engaged with representatives from the credit union sector through the Consumer Finance Forum and Financial Inclusion Policy Forum, which has brought financial services and consumer group representatives together, to discuss how people can be best supported.
HMT officials also hosted a meeting with credit union trade bodies in June 2020 to understand their experiences of supporting members through the Covid-19 pandemic.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they have taken to ensure that the proposed changes to the Small Brewers’ Relief will not increase the tax burden for brewers who produce between 2,100 hectolitres and 5,000 hectolitres a year.
Answered by Lord Agnew of Oulton
The Treasury has been reviewing the Small Brewers Relief (SBR) scheme since 2018. The SBR scheme in part aims to provide smaller brewers support with their higher production costs. Small brewers receive a 50% reduction from their beer duty bills, but currently once brewers produce more than 5,000 hectolitres this is rapidly withdrawn.
Based on evidence provided by a survey of brewers conducted in 2019, which received over 300 responses, and data provided by the Society of Independent Brewers and other brewing groups, the Treasury has concluded that production costs for brewers in the range of 2,100-5,000 hectolitres are not significantly different for those in the 5-10,000 hectolitres range.
Accordingly, the Treasury considers that the radically different tax treatment both groups currently face is not appropriate. It disincentivises growth and distorts business decisions.
Therefore, the Treasury has concluded that both groups of brewers should be brought in scope of the scheme’s taper. The Treasury will discontinue the “cliff edge” design of the current taper in favour of a new one, which tapers relief more smoothly over a broader range of production.
The details of these proposals are subject to further consultation, and the final shape of these reforms has not yet been determined. The Treasury expects that more than 80% of all brewers will be unaffected by these changes, and brewers who are affected will benefit from the improved economics of the scheme. Final changes will not take effect until at least 31 December 2021.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what investigations they are undertaking to ensure that the financial burden of the COVID-19 pandemic is not disproportionately borne by minority communities.
Answered by Lord Agnew of Oulton
The Government has announced unprecedented support for public services, workers and businesses to protect against the current economic emergency. These measures are supporting millions of families, businesses and self-employed people from every community in the UK to get through this crisis and emerge on the other side both stronger and more united.
HM Treasury takes care to pay due regard to the equality impacts of its policy decisions relating to the COVID-19 outbreak, in line with all legal requirements and the Government’s commitment to promoting equality. There are internal procedural requirements and support in place for ensuring that such considerations inform decisions taken by Ministers.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the number of businesses in the creative sector with a turnover of less than £6.5 million that do not qualify for (1) a small business grant, (2) retailers, hospitality and leisure grants, and (3) the business rate holiday.
Answered by Lord Agnew of Oulton
The Government does not have this information available. Local Authorities, which are operating the business grants schemes and the business rates holiday, do not have systematic access to data on the turnover of businesses in their area.
We are aware that some small businesses are finding themselves excluded from the business grants schemes because of the way in which they interact with the business rates system.
On 1st May the Government announced that it would make up to £617 million of additional funding available to Local Authorities to enable them to make discretionary payments of up to £25,000 to businesses in this situation.
The discretionary funds will be administered by Local Authorities, who will ask businesses to apply for a grant. Local Authorities will shortly receive guidance regarding which kinds of businesses should be considered a priority for these funds. It is the Government’s intention that the following businesses should be considered a priority:
Local Authorities may also choose to pay grants to businesses outside of these areas, according to local economic need, so long as the grants are aimed at:
Businesses will need to apply to their Local Authority in order to receive grants. Each Local Authority will need to create their own process, which may take some time. The Government encourages businesses in the creative sectors which have not been eligible for grants to look out for their Local Authority’s version of this scheme, and to contact their Local Authority for more information in due course.
Businesses in the creative sector which remain ineligible for business grants may be able to benefit from other measures in the Government’s unprecedented package of support for business, including:
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what support they provide to help individuals to establish cooperative businesses.
Answered by Lord Agnew of Oulton
In 2014 the Government passed the Co-operative and Community Benefit Societies Act, to reduce legal complexity for co-operatives and community benefit societies, and increased the amount of share capital an individual member can put into a cooperative society to £100,000.
Co-operatives UK’s ’Co-op Economy’ report has found that annual turnover for co-operative and mutual businesses across the UK has grown year on year, reaching a record high of £37.7 billion in 2019.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what support they provide to the credit union sector in the UK.
Answered by Lord Agnew of Oulton
At Autumn Budget 2018, the Government announced a package of measures to support credit unions, and other social and community lenders, including:
Regulation of the credit union sector is a matter for the Prudential Regulation Authority (PRA). The PRA concluded a consultation on a simplified, proportional capital requirement regime for credit unions on 24 January 2020.
Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the adequacy of the regulation of credit unions.
Answered by Lord Agnew of Oulton
At Autumn Budget 2018, the Government announced a package of measures to support credit unions, and other social and community lenders, including:
Regulation of the credit union sector is a matter for the Prudential Regulation Authority (PRA). The PRA concluded a consultation on a simplified, proportional capital requirement regime for credit unions on 24 January 2020.