Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of people who (a) have and (b) will become financially insolvent as a result of the Loan Charge.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HMRC cannot provide an estimate for the number of people subject to the Loan Charge who have become insolvent as they could have become insolvent for many reasons.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people HM Revenue and Customs was seeking loan charge payments from in relation to the tax years before April 2010, as of 8 September 2023.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.
However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.
HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish guidance issued by his Department on issuing loan charge refunds following the Morse Review in 2018.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
I refer the Honourable Member to the answer that was given on 27 April 2023 to the question UIN 182076.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC has taken to issue loan charge refunds following the Morse Review 2018.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
I refer the Honourable Member to the answer that was given on 27 April 2023 to the question UIN 182076.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the abolition of the Debt Management Office on the independent oversight of the UK debt market.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The UK Debt Management Office (DMO) is an Executive Agency of HM Treasury and therefore not independent.
The DMO is the government’s actor in wholesale debt and cash markets, with the operational responsibility for implementing and delivering the government’s debt and cash management remits. More details on the main aims of the DMO are available in its Executive Agency Framework Document (available at: https://www.dmo.gov.uk/media/dtkpands/fwork040405.pdf)
There are no plans to abolish the DMO.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential reasons for the rise in index-linked gilt yields.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Index-linked gilts are planned to account for around 11% of gilt sales in 2023-24. The government’s decisions on the amount of index-linked (and conventional) gilt issuance are taken as part of the annual financing remit, and in consultation with market participants. In practice, the share of total issuance will vary from year to year depending on factors including the size of the financing requirement, demand, and market conditions.
Index-linked gilts remain a key part of the UK’s financing programme, as they have for over four decades. They have historically brought cost advantages for the government due to strong demand from, for example, the domestic pension fund industry, and they continue to do so based on current inflation expectations implied by the difference between nominal and real yields.
At Budget 2018, the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term, to manage the inflation exposure in the debt portfolio. Since then, the proportion of index-linked gilts in the debt portfolio has fallen from 28.4% at the end of 2019 to 25.3% at the end of 2022. As set out in the 2022-23 Debt Management Report, the government is no longer looking to reduce index-linked gilt issuance as a share of total issuance on a year-on-year basis over the medium term. The 2023-24 financing remit is consistent with this.
The proportion of index-linked gilts in the government’s wholesale debt portfolio remains consistently higher than across the G7 group of advanced economies and is around twice as large as the second highest G7 country. This is largely owing to the high level of structural demand in the UK, as a number of institutional investors hold index-linked gilts to hedge long-term inflation-linked liabilities.
The government does not comment on specific financial market movements. Real yields have been low by historical standards over the last decade. It is normal for the yields of index-linked (and conventional) gilts to vary when there are wider movements in financial markets. The government is ultimately a price-taker, with the price of government debt determined by the market.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his Departments policy is on issuing more index-linked gilts in the next 12 months.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Index-linked gilts are planned to account for around 11% of gilt sales in 2023-24. The government’s decisions on the amount of index-linked (and conventional) gilt issuance are taken as part of the annual financing remit, and in consultation with market participants. In practice, the share of total issuance will vary from year to year depending on factors including the size of the financing requirement, demand, and market conditions.
Index-linked gilts remain a key part of the UK’s financing programme, as they have for over four decades. They have historically brought cost advantages for the government due to strong demand from, for example, the domestic pension fund industry, and they continue to do so based on current inflation expectations implied by the difference between nominal and real yields.
At Budget 2018, the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term, to manage the inflation exposure in the debt portfolio. Since then, the proportion of index-linked gilts in the debt portfolio has fallen from 28.4% at the end of 2019 to 25.3% at the end of 2022. As set out in the 2022-23 Debt Management Report, the government is no longer looking to reduce index-linked gilt issuance as a share of total issuance on a year-on-year basis over the medium term. The 2023-24 financing remit is consistent with this.
The proportion of index-linked gilts in the government’s wholesale debt portfolio remains consistently higher than across the G7 group of advanced economies and is around twice as large as the second highest G7 country. This is largely owing to the high level of structural demand in the UK, as a number of institutional investors hold index-linked gilts to hedge long-term inflation-linked liabilities.
The government does not comment on specific financial market movements. Real yields have been low by historical standards over the last decade. It is normal for the yields of index-linked (and conventional) gilts to vary when there are wider movements in financial markets. The government is ultimately a price-taker, with the price of government debt determined by the market.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of reducing the amount of issue index-linked gilts on financial markets.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Index-linked gilts are planned to account for around 11% of gilt sales in 2023-24. The government’s decisions on the amount of index-linked (and conventional) gilt issuance are taken as part of the annual financing remit, and in consultation with market participants. In practice, the share of total issuance will vary from year to year depending on factors including the size of the financing requirement, demand, and market conditions.
Index-linked gilts remain a key part of the UK’s financing programme, as they have for over four decades. They have historically brought cost advantages for the government due to strong demand from, for example, the domestic pension fund industry, and they continue to do so based on current inflation expectations implied by the difference between nominal and real yields.
At Budget 2018, the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term, to manage the inflation exposure in the debt portfolio. Since then, the proportion of index-linked gilts in the debt portfolio has fallen from 28.4% at the end of 2019 to 25.3% at the end of 2022. As set out in the 2022-23 Debt Management Report, the government is no longer looking to reduce index-linked gilt issuance as a share of total issuance on a year-on-year basis over the medium term. The 2023-24 financing remit is consistent with this.
The proportion of index-linked gilts in the government’s wholesale debt portfolio remains consistently higher than across the G7 group of advanced economies and is around twice as large as the second highest G7 country. This is largely owing to the high level of structural demand in the UK, as a number of institutional investors hold index-linked gilts to hedge long-term inflation-linked liabilities.
The government does not comment on specific financial market movements. Real yields have been low by historical standards over the last decade. It is normal for the yields of index-linked (and conventional) gilts to vary when there are wider movements in financial markets. The government is ultimately a price-taker, with the price of government debt determined by the market.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential impact of issuing longer gilts on the number of index-linked gilts issued.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Index-linked gilts are planned to account for around 11% of gilt sales in 2023-24. The government’s decisions on the amount of index-linked (and conventional) gilt issuance are taken as part of the annual financing remit, and in consultation with market participants. In practice, the share of total issuance will vary from year to year depending on factors including the size of the financing requirement, demand, and market conditions.
Index-linked gilts remain a key part of the UK’s financing programme, as they have for over four decades. They have historically brought cost advantages for the government due to strong demand from, for example, the domestic pension fund industry, and they continue to do so based on current inflation expectations implied by the difference between nominal and real yields.
At Budget 2018, the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term, to manage the inflation exposure in the debt portfolio. Since then, the proportion of index-linked gilts in the debt portfolio has fallen from 28.4% at the end of 2019 to 25.3% at the end of 2022. As set out in the 2022-23 Debt Management Report, the government is no longer looking to reduce index-linked gilt issuance as a share of total issuance on a year-on-year basis over the medium term. The 2023-24 financing remit is consistent with this.
The proportion of index-linked gilts in the government’s wholesale debt portfolio remains consistently higher than across the G7 group of advanced economies and is around twice as large as the second highest G7 country. This is largely owing to the high level of structural demand in the UK, as a number of institutional investors hold index-linked gilts to hedge long-term inflation-linked liabilities.
The government does not comment on specific financial market movements. Real yields have been low by historical standards over the last decade. It is normal for the yields of index-linked (and conventional) gilts to vary when there are wider movements in financial markets. The government is ultimately a price-taker, with the price of government debt determined by the market.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reasons his Department issued more inflation-linked gilts in 2023 than than other G7 countries.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Index-linked gilts are planned to account for around 11% of gilt sales in 2023-24. The government’s decisions on the amount of index-linked (and conventional) gilt issuance are taken as part of the annual financing remit, and in consultation with market participants. In practice, the share of total issuance will vary from year to year depending on factors including the size of the financing requirement, demand, and market conditions.
Index-linked gilts remain a key part of the UK’s financing programme, as they have for over four decades. They have historically brought cost advantages for the government due to strong demand from, for example, the domestic pension fund industry, and they continue to do so based on current inflation expectations implied by the difference between nominal and real yields.
At Budget 2018, the government announced that it would look to reduce the proportion of index-linked gilt issuance in a measured fashion over the medium term, to manage the inflation exposure in the debt portfolio. Since then, the proportion of index-linked gilts in the debt portfolio has fallen from 28.4% at the end of 2019 to 25.3% at the end of 2022. As set out in the 2022-23 Debt Management Report, the government is no longer looking to reduce index-linked gilt issuance as a share of total issuance on a year-on-year basis over the medium term. The 2023-24 financing remit is consistent with this.
The proportion of index-linked gilts in the government’s wholesale debt portfolio remains consistently higher than across the G7 group of advanced economies and is around twice as large as the second highest G7 country. This is largely owing to the high level of structural demand in the UK, as a number of institutional investors hold index-linked gilts to hedge long-term inflation-linked liabilities.
The government does not comment on specific financial market movements. Real yields have been low by historical standards over the last decade. It is normal for the yields of index-linked (and conventional) gilts to vary when there are wider movements in financial markets. The government is ultimately a price-taker, with the price of government debt determined by the market.