Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of tax rates in other G7 countries on economic growth in the UK since June 2021.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The UK is an open economy and so its economic growth will be affected by developments in its trading partners, including any impact from their fiscal policy. Despite global headwinds, the UK economy was the fasting growing economy in the G7 last year according to the IMF Global Outlook released in October. It suggested the annual Real GDP Growth Rate in the UK reached 7.4% last year, while France (the second fastest growing G7 economy in 2021) reached 6.8%.
In the March 2022 Economic and Fiscal Outlook (EFO), the OBR projected the tax-to-GDP ratio to rise to 36.3% in 2026/27. Internationally, tax-to-GDP ratio in the UK is lower than in Germany (38.3%), France (45.4%) and Italy (42.9%) and higher than in the USA (24.5%), Japan (32.0%) and Canada (34.4%)
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the cost to the public purse of additional short-term borrowing in the 2022-23 financial year.
Answered by John Glen
The Treasury does not publish forecasts of the economy or the public finances; the Office for Budget Responsibility (OBR) is the UK’s official forecaster. In their March 2022 forecast, the OBR projected that Public Sector Net Borrowing (PSNB) for 2022-23 would be £99.1 billion or 3.9% of GDP. Latest outturn data from the Office for National Statistics (ONS) shows by the end of September, PSNB had reached £72.5bn.
In terms of the costs of debt interest: rising inflation is pushing up our debt interest costs - in March the OBR forecast that government spending on debt interest would reach £83.0 billion in 2022-23. In September 2022, the interest payable on central government debt was £7.7 billion, 2.5bn higher than September 2021.
The OBR will publish an updated fiscal forecast on 17 November, alongside the Autumn Statement, which will reflect the impact of any short-term additional borrowing on the economy and public finances.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the level of debt as a proportion of GDP in the (a) UK and (b) other G7 countries.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Office for National Statistics (ONS) have published estimates of the UK’s debt as a percentage of GDP which can be compared to G7 countries.
At the end of December 2021, this estimates that the UK’s general government gross debt was 105.6% of GDP. The UK has the second lowest level of debt in the G7, 29.1 percentage points lower than the G7 average at the end of December 2021.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to reintroduce the Mortgage Interest Relief at Source scheme.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
There are a wide range of factors to consider when introducing a relief. Landlords are also already able to claim tax relief on finance costs for their rental property. For unincorporated landlords, this can be claimed at the basic rate of Income Tax.
The Government has no current plans to reintroduce the Mortgage interest relief at Source (MIRAS) scheme. As with all aspects of the tax system, the Government keeps tax reliefs under review and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the potential average annual revenue to the Exchequer that would be accrued if non-domiciled status was abolished.
Answered by Felicity Buchan
Non-domiciled taxpayers were liable to pay £7,896 million in UK Income Tax, Capital Gains Tax, and National Insurance contributions in the tax year ending 2021.
Those non-domiciles using the remittance basis pay UK tax on their UK-income and gains, and they only pay UK tax on foreign income and gains when or if those amounts are brought into the UK.
The remittance basis provides internationally mobile individuals in the UK, but with ongoing ties to another country, with an alternative treatment for their overseas income and capital gains. It increases the attractiveness and competitiveness of the UK as a place to live, to work, and invest.
The Government does not have an estimate of the Exchequer revenue from the removal of the non-domiciled remittance basis of taxation.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake a zero-based review of all Departmental spending.
Answered by Edward Argar
Last year’s Spending Review (‘SR21’) set departmental budgets for three years from 2022/23 to 2024/25: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1043688/Budget_AB2021_Print.pdf
As the Chancellor has set out, difficult decisions will be needed on taxation and spending in order to deliver debt falling as a share of the economy over the medium term. This will include finding efficiencies and savings from within plans set at the last Spending Review. The Government will not be undertaking another Spending Review or zero-based review at this time.
The Chancellor will provide more detail on the Government’s planned approach to public spending at the Medium-Term Fiscal Plan on 31 October.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential impact of his Department’s fiscal policies on the cost of living.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Government understands that people across the UK are worried about the rising cost of living and has taken decisive action to get households and businesses through this winter and the next, while ensuring action is fiscally responsible.
The Energy Price Guarantee means that a typical UK household will pay no more than £2500 a year on their energy bill over the next 2 years. While the Energy Bill Relief Scheme will provide support for businesses, charities, and public sector organisations.
These measures will save the average household around £1000 a year from October, and protect businesses from soaring energy costs, providing them with the certainty they need to plan through the acute crisis this winter.
In addition to this support for energy costs, the Government has already announced £37 billion of targeted support for the cost of living this financial year. This will provide millions of the most vulnerable households with £800 support through the £150 Council Tax rebate and a one-off £650 Cost of Living Payment, with additional support for pensioners and those claiming disability benefits.
As part of the Growth Plan, the Chancellor announced the reversal of the 1.25 percentage point increase in National Insurance from November, and a cut in the basic rate of Income Tax to 19 per cent from April 2023.
These tax cuts will put money back into people’s pockets as well as fuelling economic growth. The Chancellor has been clear that growth is the only sustainable way of increasing living standards for all.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to hold discussions with (a) Cabinet colleagues and (b) stakeholders on the potential merits of zero-rating VAT on domestic fuel.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Government has announced a new 'Energy Price Guarantee' to limit the price suppliers can charge customers for units of gas and electricity. This will save the average household £1,000 a year based on current energy prices from October.
In recognition of the fact that families should not have to bear all of the VAT costs they incur to meet their needs, domestic fuels such as gas, electricity, and heating oil are already subject to the reduced rate of VAT at 5 per cent.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to reduce HM Revenue and Customs paperwork for alcohol exporters.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
I refer the Hon. Member to the answer given on 6 July 2022 – UIN26743.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 unemployment on the mortality rate in England.
Answered by Alan Mak
The government remains focussed on maintaining near record-low unemployment, whilst providing the necessary support to help the most vulnerable to find work.
The unemployment rate has fallen to 3.8% in the three months to May and is close to historic lows. We are building on the success of the Plan for Jobs, investing a total of £6 billion for the three years from 2022-23 to 2024-25: providing targeted additional support to help at risk groups find work, including younger and older age groups, the long-term unemployed and people with disabilities.