Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing an individualised financial support package for different sectors of the economy based on the respective effects of covid-19 outbreak on those sectors.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Government has provided one of the most comprehensive and generous packages of support for businesses globally. The Chancellor recently extended the furlough scheme until the end of October and a host of other support measures are still available for businesses in all sectors.
In addition, the Government has implemented targeted measures for specific sectors where it has believed it was necessary. For example, small businesses occupying properties for retail, hospitality or leisure purposes can benefit from £25,000 per property for each property that has a rateable value above £15,000 and below £51,000. Eligible businesses in the retail, leisure and hospitality in England can also benefit from a 12-month business rates holiday. Also, on 5 July the Government announced that Britain’s arts, culture and heritage industries will receive a world-leading £1.57 billion rescue package.
Additionally, on 8 July the Chancellor announced further sectoral support for businesses including, but not limited to:
As we cautiously reopen closed sectors of the economy the Government will continue to review the economic situation and provide further support for specific sectors if it believes it is appropriate.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to extend the Coronavurus Job Retention Scheme for businesses in sectors unable to reopen for safety reasons as the covod-19 lockdown restrictions are eased.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor of the Exchequer has said there will be no further extensions or changes to the Coronavirus Job Retention Scheme (CJRS).
After eight months of the CJRS, the scheme will close at the end of October.
Businesses and sectors that are unable to reopen can continue to access the Coronavirus Job Retention Scheme until the scheme’s end as they have done so far.
The introduction of flexible furloughing further ensures that firms can begin to bring furloughed employees back to work as lockdown restrictions are eased and it becomes safe to do so.
It would be challenging to target the CJRS to specific sectors and locations in a fair and deliverable way, and it may not be the case that this is the most effective or sensible way to provide longer term support for those sectors and areas that are not yet reopening.
The Government will continue to engage with businesses and sectors with the aim of ensuring that support provided is right for those sectors and for the economy as a whole.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the Coronavirus Job Retention Scheme on a (a) sectoral and (b) geographical basis to take account of differences in (i) speed and (ii) location of reopening as covid-19 lockdown restrictions are eased.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor of the Exchequer has said there will be no further extensions or changes to the Coronavirus Job Retention Scheme (CJRS).
After eight months of the CJRS, the scheme will close at the end of October.
Businesses and sectors that are unable to reopen can continue to access the Coronavirus Job Retention Scheme until the scheme’s end as they have done so far.
The introduction of flexible furloughing further ensures that firms can begin to bring furloughed employees back to work as lockdown restrictions are eased and it becomes safe to do so.
It would be challenging to target the CJRS to specific sectors and locations in a fair and deliverable way, and it may not be the case that this is the most effective or sensible way to provide longer term support for those sectors and areas that are not yet reopening.
The Government will continue to engage with businesses and sectors with the aim of ensuring that support provided is right for those sectors and for the economy as a whole.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
If he will bring forward legislative proposals to include the Roadchef Employee Benefits Trust in the schedule of tax free employee benefit schemes administered by HMRC.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The administration of the tax system is a matter for HM Revenue and Customs, who have indicated that they are in dialogue with the taxpayer. It would not be appropriate for Treasury ministers to become involved in the administration of the tax system in specific cases.
The Government keeps all tax legislation under regular review and any changes are considered in line with Government priorities.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to respond to the letter of 13 May 2020 from the hon. Member for Airdrie and Shotts, reference NG12034.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Honourable Member’s correspondence was transferred from Number 10 to HM Treasury on 18 May. The Treasury responded via email on 11 June.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential effect of the pause in the Financial Conduct Authority's consultation on Guidance for firms on the fair treatment of vulnerable customers on (a) people living with cancer and (b) other vulnerable consumers; and what steps he is taking to support those people.
Answered by John Glen
The Government is committed to doing whatever it takes to get our nation through this crisis and that includes supporting the most vulnerable in our society. To this end, the Government continues to work closely with financial services regulators as part of the economic response.
The Financial Conduct Authority (FCA) has introduced measures supporting consumers in financial difficulty at this time, and requires firms to prioritise vulnerable consumers, including those with poor health.
In response, firms across the financial services sector have announced a range of measures to support vulnerable customers and the Government is working with the FCA to ensure there is continued support. For example, many firms have methods for trusted third-parties to access cash for vulnerable/self-isolating people, as well as setting up dedicated phone lines to support them.
Since the COVID-19 crisis has developed, the Government has also worked closely with the FCA on the introduction of payment deferral periods to provide support to consumers affected by the COVID-19 outbreak.
In addition, the FCA consulted on draft guidance on the fair treatment of vulnerable consumers in July 2019, which may be useful to firms at this time. This guidance focuses on firms’ considering and meeting the needs of vulnerable customers and embedding this thinking in their culture, practices, and processes throughout the whole consumer journey, from product design to customer service. The second consultation in March was postponed due to the current COVID-19 pandemic. The FCA are currently developing their understanding of how COVID-19 is impacting vulnerable consumers and how it should influence their policy approach. As part of this they are considering how and when to restart the vulnerability guidance consultation.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on charities of extending the length of the Coronavirus Job Retention Scheme.
Answered by Kemi Badenoch - Leader of HM Official Opposition
On 12 May the Government announced a major extension to the Coronavirus Job Retention Scheme which will continue to the end of October, including more flexibility and employer contributions from August as people return to work. This will provide clarity for the coming months for all businesses, including charities. The flexibilities introduced will allow businesses and charities to move out of the scheme in a measured way that protects people’s incomes and helps support furloughed employees as they return to work. The Government has announced a £750 million support package for charities. £360m will be allocated directly to charities providing essential services and supporting vulnerable people. £310m will support smaller, local charities including through grants distributed by the National Lottery Community Fund. £60m will be allocated to the Devolved Administrations through the Barnett formula. The Government pledged to match whatever the public donated to the BBC Big Night In fundraiser on 23 April, with a minimum of £20m going to the National Emergencies Trust.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what additional steps his Department is planning to take to support charities affected financially by the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Many charities and social enterprises will benefit from the existing measures announced to support employers and businesses. Under these measures, like other businesses, charities can defer their VAT bills and pay no business rates for their shops next year. All charities are eligible for the Coronavirus Job Retention Scheme (CJRS) and the right answer for many charities will be to furlough their employees with the Government paying 80% of wages. Charities are eligible for the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loans Scheme (BBL). Registered charities are now exempt from the requirement that 50% of the applicant’s income must be derived from its Trading Activity.
The Government has also set out a £750 million package of support for charities providing key services and supporting vulnerable people during the COVID-19 crisis. This will enable such organisations to continue providing essential services to those most in need. Funding for charities is now starting to be disbursed and the most up to date information is available at: https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector#government-financial-support-for-charities. Our aim is to get funding to those in greatest need as soon as possible.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the guidance recently published by the Financial Conduct Authority (FCA) on customers in temporary financial difficulty during the covid-19 outbreak, what discussions (a) he and (b) officials in his Department have had with representatives of the FCA on the absence of specific guidance for vulnerable consumers in that publication.
Answered by John Glen
The Government is committed to doing whatever it takes to get our nation through this crisis and that includes supporting the most vulnerable in our society. To this end, the Government continues to work closely with financial services regulators as part of the economic response.
The Financial Conduct Authority (FCA) has introduced measures supporting consumers in financial difficulty at this time, and require firms to prioritise vulnerable consumers, including those with poor health.
In response, firms across the financial services sector have announced a range of measures to support vulnerable customers and the Government is working with the FCA to ensure there is continued support. For example, many firms have methods for trusted third-parties to access cash for vulnerable/self-isolating people, as well as setting up dedicated phone lines to support them.
Since the COVID-19 crisis has developed, the Government has also worked closely with the FCA on the introduction of payment deferral periods to provide support to consumers who are facing temporary cash flow problems as a result of the COVID-19 outbreak.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of introducing measures in the financial services sector to protect (a) people living with cancer and (b) other vulnerable consumers.
Answered by John Glen
The Government is committed to doing whatever it takes to get our nation through this crisis and that includes supporting the most vulnerable in our society. To this end, the Government continues to work closely with financial services regulators as part of the economic response.
The Financial Conduct Authority (FCA) has introduced measures supporting consumers in financial difficulty at this time, and require firms to prioritise vulnerable consumers, including those with poor health.
In response, firms across the financial services sector have announced a range of measures to support vulnerable customers and the Government is working with the FCA to ensure there is continued support. For example, many firms have methods for trusted third-parties to access cash for vulnerable/self-isolating people, as well as setting up dedicated phone lines to support them.
Since the COVID-19 crisis has developed, the Government has also worked closely with the FCA on the introduction of payment deferral periods to provide support to consumers who are facing temporary cash flow problems as a result of the COVID-19 outbreak.