Asked by: Marion Fellows (Scottish National Party - Motherwell and Wishaw)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on business profitability of the annual investment allowance.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Annual Investment Allowance (AIA) provides companies with a 100% first-year deduction for their capital investment, up to the AIA limit. In order to support businesses to invest, the government increased the permanent level of the AIA from £25,000 to £200,000 from 1 January 2016. In 2016-17, it is forecast that the AIA provided support to businesses of £2.7 billion. It is estimated that 85% of the value of the AIA at £200,000 goes to small and medium-sized companies.
Asked by: Marion Fellows (Scottish National Party - Motherwell and Wishaw)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of his Department's policy on employment allowance on (a) employment and (b) small and medium-sized enterprises; and whether he plans to amend the employment allowance policy.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Employment Allowance allows business and charities throughout the UK to reduce their employer National Insurance contributions (NICs) bill by up to £3,000 every year. Last year alone this meant over 1 million employers benefitted, of which 97% had fewer than 50 employees. Employers overall saved £2bn in employers NICs due to the Employment Allowance.
The Government published research into awareness and impact of the Employment Allowance with small employers in 2015. This can be found online at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/445848/Research_Report_368_Awareness_and_Impact_of_the_Employment_Allowance_-_Research_with_small_employers.pdf
Asked by: Marion Fellows (Scottish National Party - Motherwell and Wishaw)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, for what reasons the income of the highest-earning parent is used to assess eligibility for child benefit rather than the joint incomes of both parents.
Answered by Damian Hinds - Minister of State (Education)
If the Government were to use total household income as the criteria for the High Income Child Benefit Charge on households, this would require collecting information of the incomes of everyone in each of the eight million households receiving Child Benefit. This would effectively introduce a new means test. The Government’s approach withdraws Child Benefit from those on high incomes, whilst having no impact on the majority of claimants.
Asked by: Marion Fellows (Scottish National Party - Motherwell and Wishaw)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will take fiscal steps to support exports by SMEs.
Answered by David Gauke
The government has provided significant support to first time exporters, many of whom are Small and Medium Enterprises.
A significant package was announced at Autumn Statement 2014, and funding for this initiative was continued at Spending Review 2015.