Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a one off windfall tax on energy companies.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Energy Profits Levy was introduced in May 2022 to respond to very high prices that meant oil and gas companies are benefiting from exceptional profits. At Autumn Statement 2022, the government confirmed the rate of the levy would rise by a ten percentage points to 35%. This is on top of the 40% tax rate under the permanent regime, bringing the combined headline rate of tax for the sector to 75%, one of the highest amongst comparable North Sea regimes.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion over the next five years. Total UK oil and gas revenues over this period are forecast to be around £80 billion.
At Autumn Statement, the Government also announced the Electricity Generator Levy, effective since 1 January 2023. This is a temporary 45% tax on extraordinary returns made by some UK electricity generators.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with Cabinet colleagues on the potential impact on households of increases in the Energy Price Guarantee.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As announced at the Autumn Statement, the Energy Prince Guarantee (EPG) will rise to £3000 from April 2023 until April 2024. It is important to ensure fiscal sustainability whilst continuing to provide support on energy bills.
The EPG continues to be a significant intervention and will save the average household around £900 this winter, based on forecasts at the Autumn Statement. The EPG, alongside the £400 Energy Bills Support Scheme (EBSS) for all households, will mean the typical household has received around £1300 of support this winter. The Government has announced £37 billion of support for households and individuals for the cost of living in 2022-23. As part of this financial year’s cost of living support and in addition to universal support with energy bills, millions of the most vulnerable households have received £150 Council Tax rebate and one-off £650 Cost of Living Payment for those on means-tested benefits, with additional £300 cost of living support for pensioners and a one-off cost of living payment of £150 for those claiming disability benefits.
The Government has announced further support for 2023-24 designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits, including £300 cost of living payments for pensioners, £150 for individuals on disability benefits and £900 for those on means-tested benefits.
The Government continues to keep the current situation under review. The economic and fiscal position remain challenging, which is why it is right that the Government has taken action to maintain fiscal sustainability whilst targeting its support to the most vulnerable.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of stopping the rise in the Energy Prince Guarantee planned for 1 April 2023.
Answered by James Cartlidge - Shadow Secretary of State for Defence
As announced at the Autumn Statement, the Energy Prince Guarantee (EPG) will rise to £3000 from April 2023 until April 2024. It is important to ensure fiscal sustainability whilst continuing to provide support on energy bills.
The EPG continues to be a significant intervention and will save the average household around £900 this winter, based on forecasts at the Autumn Statement. The EPG, alongside the £400 Energy Bills Support Scheme (EBSS) for all households, will mean the typical household has received around £1300 of support this winter. The Government has announced £37 billion of support for households and individuals for the cost of living in 2022-23. As part of this financial year’s cost of living support and in addition to universal support with energy bills, millions of the most vulnerable households have received £150 Council Tax rebate and one-off £650 Cost of Living Payment for those on means-tested benefits, with additional £300 cost of living support for pensioners and a one-off cost of living payment of £150 for those claiming disability benefits.
The Government has announced further support for 2023-24 designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits, including £300 cost of living payments for pensioners, £150 for individuals on disability benefits and £900 for those on means-tested benefits.
The Government continues to keep the current situation under review. The economic and fiscal position remain challenging, which is why it is right that the Government has taken action to maintain fiscal sustainability whilst targeting its support to the most vulnerable.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the impact of Brexit on the UK economy.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
It is for the Office for Budget Responsibility to provide economic and fiscal forecasts. Global external factors, including Covid and Russia’s invasion of Ukraine, continue to put pressures on the UK economy. It is not possible to definitively disentangle the effect of these global factors from the longer-term impacts of EU exit on the UK economy and households.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many high street businesses in (a) England and (b) Battersea constituency have closed each year in the last five years; and whether the Government has plans to make changes to the business rates system.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The most recent review of Business Rates concluded at Autumn Budget 2021. The review reaffirmed the importance of business rates for raising revenue for essential local services and announced a £7 billion package of measures including a new temporary 50 per cent relief for retail, hospitality, and leisure in 2022-23, freezing the multiplier for another year, and extending schemes to support small businesses. Business rates raise over £25 billion a year in England to fund vital local services. The Government is not able to release the specific information requested due to contractual agreements with data providers. The Government keeps all taxes under review. Any future decisions regarding the tax system will be taken in line with the normal Budget process.Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with relevant stakeholders on reducing the headline rate of business rates.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The most recent review of business rates concluded at Autumn Budget 2021. The review reaffirmed the importance of business rates for raising revenue for essential local services and announced a £7 billion package of measures to support business over the next 5 years.
This includes a freeze to the business rates multiplier in 2022-23, which will support all ratepayers, large and small, meaning bills are 3 per cent lower than without the freeze. The Government has also introduced a new temporary relief for retail, hospitality, and leisure in 2022-23, worth almost £1.7 billion to the sector. These measures will support the businesses that make our high streets and town centres successful.
As with all taxes, HM Treasury keeps business rates under review.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support local businesses in Battersea through reforming the business rates system.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The most recent review of business rates concluded at Autumn Budget 2021. The review reaffirmed the importance of business rates for raising revenue for essential local services and announced a £7 billion package of measures to support business over the next 5 years.
This includes a freeze to the business rates multiplier in 2022-23, which will support all ratepayers, large and small, meaning bills are 3 per cent lower than without the freeze. The Government has also introduced a new temporary relief for retail, hospitality, and leisure in 2022-23, worth almost £1.7 billion to the sector. These measures will support the businesses that make our high streets and town centres successful.
As with all taxes, HM Treasury keeps business rates under review.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that business rates bills do not cause high street shops in (a) Battersea and (b) the rest of the UK to close.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The most recent review of business rates concluded at Autumn Budget 2021. The review reaffirmed the importance of business rates for raising revenue for essential local services and announced a £7 billion package of measures to support business over the next 5 years.
This includes a freeze to the business rates multiplier in 2022-23, which will support all ratepayers, large and small, meaning bills are 3 per cent lower than without the freeze. The Government has also introduced a new temporary relief for retail, hospitality, and leisure in 2022-23, worth almost £1.7 billion to the sector. These measures will support the businesses that make our high streets and town centres successful.
As with all taxes, HM Treasury keeps business rates under review.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support disabled people who are disproportionately affected by the rising cost of living.
Answered by Simon Clarke
The government understands that the rising cost of living has presented additional financial challenges to many people, and especially to the most vulnerable members of society, such as disabled people. That is why this government announced on 26th May a new Cost of Living package, providing over £15bn of support targeted particularly at those with the greatest need. This package builds on the over £22bn already announced, bringing total government support for the Cost of Living to over £37bn this year. The latest package includes additional UK-wide support to help disabled people with the particular extra costs they are facing, with 6 million people who receive non-means-tested extra-costs disability benefits due to receive a one-off Disability Cost of Living Payment of £150. This payment can be received in addition to the other Cost of Living Payments for households on means-tested benefits or in receipt of Winter Fuel Payments. Disabled people will also benefit from the £400 of support for energy bills that the government is providing through an expansion of the Energy Bills Support Scheme, doubling the £200 of support announced earlier this year and making the whole £400 a grant that will not be recovered through higher bills in future years.
Asked by: Marsha De Cordova (Labour - Battersea)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the UK's departure from the EU on the cost of living; and if he will publish the (a) economic and (b) equality impact assessments conducted by the Government on the UK leaving the EU.
Answered by John Glen
The government understands how the rising cost of living is making life harder for people. These are global challenges however, as set out in the Spring Statement, and the government is providing support worth over £22 billion in 2022-23 to help families across the UK with these pressures.
It remains challenging to separate out the effects of Brexit and COVID on the UK economy, with recent events and the conflict between Russia and Ukraine adding further pressures to trade, prices and the wider economy. The Bank of England has noted that the majority of the increase in inflation since the pandemic is likely due to global factors.