Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have had with representatives of insurance providers on ensuring that business interruption clauses are upheld for claims made as a result of the covid-19 pandemic.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is in continual dialogue with the insurance sector to understand and influence its response to this unprecedented situation and is encouraging insurers to do all they can to support customers during this difficult period.
The Government is working closely with the Financial Conduct Authority (FCA) to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role. The FCA rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.
However, it is important to note that most businesses have not purchased insurance that covers losses from non-property damage. Additionally, while some policies cover losses arising from any disease classed as notifiable by the government, or a denial of access to a building, most of these policies only cover a specific list of notifiable diseases or an incident specifically on the premises of the business. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. The terms of a policy cannot be changed retrospectively.
The Government encourages businesses to seek assistance through the wider support package if they are in financial difficulty. Businesses should explore the full package of support set out by the Chancellor in recent weeks, including measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of introducing business rate exemptions for nurseries in England.
Answered by Jesse Norman
On 18 March, the Chancellor announced that non-local authority childcare providers would benefit from a business rates holiday for 2020-21.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Financial Conduct Authority takes to oversee and regulate loans made by the Department for Work and Pensions.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In 2014, regulatory responsibility for the consumer credit market was transferred to the Financial Conduct Authority (FCA). Whilst the FCA is responsible for regulating this market, HM Treasury sets the regulatory perimeter which informs the types of agreements that fall under the FCA’s remit. Loans made by the Department for Work and Pensions (DWP) do not fall within the FCA’s regulatory remit. For that reason, the FCA has not assessed the impact of these loans on the functioning of the market.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of short term loans are made by the Department for Work and Pensions; and what assessment the Financial Conduct Authority has made of the effect of those loans on the functioning of the market.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In 2014, regulatory responsibility for the consumer credit market was transferred to the Financial Conduct Authority (FCA). Whilst the FCA is responsible for regulating this market, HM Treasury sets the regulatory perimeter which informs the types of agreements that fall under the FCA’s remit. Loans made by the Department for Work and Pensions (DWP) do not fall within the FCA’s regulatory remit. For that reason, the FCA has not assessed the impact of these loans on the functioning of the market.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential merits of supporting self-employed people during the covid-19 outbreak by providing grants that cover 80 per cent of their average salary, using the last three years as a basis.
Answered by Jesse Norman
The Chancellor of the Exchequer announced new support for the self-employed on 26 March 2020.
The new Self-Employed Income Support Scheme will help those with lost trading profits due to COVID-19. It will allow eligible individuals to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed and is one of the most generous self-employed support schemes in the world.
To qualify, an individual’s self-employed trading profits must be less than £50,000 and more than half of their income must come from self-employment. Some 95% of people who receive most of their income from self-employment will benefit from this Scheme.
HM Revenue & Customs will contact individuals if they are eligible and will invite them to apply online using a simple form. HMRC are working on this urgently and expect people to be able to access the Scheme no later than the beginning of June.
More information about the Scheme, including the full eligibility criteria and how to claim, is available at www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
The Scheme supplements the significant support already announced for UK businesses and employees, including the Coronavirus Business Interruption Loan Scheme, the Coronavirus Job Retention Scheme, and deferral of tax payments.
More information about the full range of business support measures is available at www.businesssupport.gov.uk/coronavirus-business-support/.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the viability of businesses affected by coronavirus in (a) north Southwark and (b) other areas with higher than average business rates which are not covered by the business rates exemption for companies with a rateable value of less than £51,000.
Answered by Jesse Norman
On 17 March, in response to Covid-19, the Government introduced a 12 month business rates holiday for all eligible retail, leisure and hospitality businesses in England, including Southwark, with no cap on rateable values. Eligible businesses, large and small, will benefit from this exceptional step worth an additional £9.5bn in 2020-21.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the guidance published by Public Health England on 16 March 2020, what plans he has to provide additional underwriting to SMEs that will be affected by social distancing.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
For businesses which have a policy that covers pandemics, the government’s action is sufficient and will allow businesses to make an insurance claim against their policy. Furthermore, we are providing £10,000 grants to over 700,000 SMEs across England, and increased grants for qualifying retail, hospitality and leisure businesses of up to £25,000 per property. These measures are part of a wider, unprecedented package of support for businesses and workers to ensure as best we can that people remain employed and firms financially secure. The Government stands ready to do whatever it takes to support businesses through this outbreak.Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when each of the measures announced in Budget 2020 to mitigate the effects of covid-19 will be implemented to support businesses that are adversely affected.
Answered by Jesse Norman
On 17 March, in response to Covid-19, the Government introduced a 12 month business rates holiday for all eligible retail, leisure and hospitality businesses in England, including Southwark, with no cap on rateable values. Eligible businesses, large and small, will benefit from this exceptional step worth an additional £9.5bn in 2020-21.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with UK-based winemakers on (a) importing and (b) making wines from non-UK grapes after the transition period.
Answered by Jesse Norman
The Government is committed to reviewing the alcohol duty regime. As part of this review, ministers and Treasury officials will continue to meet regularly with representatives of the UK alcohol industry, including winemakers.
Details of ministerial meetings can be found on the GOV.UK website:
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the HM Treasury:
To ask the Chancellor of Exchequer, what recent assessment he has made of the (a) preparedness of businesses for the reforms to off-payroll working rules due to be implemented in April 2020 and (b) the potential merits of delaying that implementation date.
Answered by Jesse Norman
As announced at Budget 2018, the reform of the off-payroll working rules will come into effect from 6 April 2020. The Tax Information and Impact Note (TIIN) published in July 2019 sets out HMRC’s assessment that the reform to the off-payroll working rules is expected to affect 170,000 individuals. The TIIN can be found here: https://www.gov.uk/government/publications/rules-for-off-payroll-working-from-april-2020/rules-for-off-payroll-working-from-april-2020.
As part of the review published on 27 February 2020, HMRC engaged with a number of affected individuals and businesses through a series of stakeholder roundtables to test business readiness.
The Government is committed to working with organisations to ensure changes to the off-payroll working rules are implemented correctly from April 2020. HMRC are undertaking an extensive programme of education and support to help organisations prepare for the reform. This includes: