Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department consulted relevant stakeholders on the closure of HMRC's self-assessment helpline between 12 June and 4 September 2023 prior to the announcement of that closure; and whether he has made an assessment of the potential impact of that closure on customers that are not able to access HMRC's digital support services during that period.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The summer quarter is the quietest for Self-Assessment (SA) queries. HMRC piloted the temporary and time-limited closure of the SA helpline so that c.350 advisers could be moved to other work, including clearing post items, which experience heavier demand at this time of year.
The SA helpline reopened on 4 September, five months prior to the SA filing deadline of 31 January.
Around two-thirds of all Self-Assessment calls can be resolved online by customers; piloting a seasonal Self-Assessment helpline is about positively encouraging people to use these services when they can.
The intention of the pilot was to evaluate the impact of freeing up HMRC advisors to help those with urgent or complex queries or who cannot access digital services, and to work on correspondence.
HMRC will evaluate the impact of the pilot and gather feedback from customers and external bodies as a part of the evaluation.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to respond to the correspondence of 8 February 2023 and 24 March 2023 from the hon. Member for North Ayrshire and Arran on money laundering regulations.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
I would like to reassure the hon. Member that her letter is receiving urgent attention and will be responded to imminently.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the fuel duty rate of Hydrotreated Vegetable Oil for heating to match that of kerosene heating oil.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Hydrotreated vegetable oil (HVO) is a form of renewable diesel and therefore benefits from the rebated duty rate of 10.18 pence per litre (ppl) when used for domestic heating. Kerosene is fully rebated. In contrast, the fuel duty rate for road diesel and petrol is 52.95 ppl.
Concerning the Government’s position on HVO’s potential as a heating fuel, the Government's biomass policy statement of November 2021 set out that deployment of biofuels, such as HVO for off-gas-grid heating, will be limited by constraints on the global availability of sustainable biomass feedstocks, and potential alternative uses to decarbonise other sectors of the economy. Low temperature heat pumps offer a scalable way of decarbonising heating. However, the Government recognises that biofuels such as bioLPG and HVO may play a role in future off-gas-grid decarbonisation, particularly for properties that are not suitable for a heat pump.
The forthcoming Biomass Strategy will review the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO, and how this could be best used across the economy to achieve our net zero target.
As with all taxes, the Government keeps the tax treatment of HVO under review.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to raise the High Income Child Benefit Charge threshold.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is committed to managing the public finances in a disciplined and responsible way.
The Adjusted Net Income threshold of £50,000 for the High Income Child Benefit Charge (HICBC) means that the Government continues to support the majority of Child Benefit claimants, whilst ensuring that the fiscal position remains sustainable. The Government therefore considers that the current threshold remains appropriate.
However, as with all elements of tax policy, the Government keeps this under review.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to further review the annual allowance tax charge for those in receipt of a pension in (a) the aviation sector and (b) other sectors experiencing skill shortages in order to ensure that highly skilled workers are retained in those sectors.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Pensions tax relief is one of the most expensive reliefs in the personal tax system. In 2020/21 Income Tax and employer National Insurance Contributions relief cost £67.3 billion. The annual and lifetime allowances help to ensure that the highest earning pension savers do not receive a disproportionate benefit. 99 per cent of pension savers make annual contributions below £40,000, the level of standard annual allowance.
All aspects of the tax system are kept under review as part of the annual Budget process, and in the context of the wider public finances.
We are fully committed to supporting the aviation industry as it is vital to our future as a global trading nation as well as playing an important role in local economies. In May 2022, the Government published Flightpath to the Future - our strategic framework for the sector to build back better, make UK aviation cleaner, greener and more competitive than ever before. It also explores key issues including workforce and skills, recovery, global impact, innovation and decarbonisation.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on addressing the accountability of financial regulators after the collapse of Blackmore Bond plc.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government considers it is vitally important that there are appropriate mechanisms in place to ensure the financial services regulators are accountable for all aspects of their performance.
The FCA is responsible for ensuring consumer protection for a broad range of financial services products. However, it does not regulate all financial services firms and products. Blackmore Bond Plc was not authorised by the FCA and the sale of the ‘mini-bond’ product it offered was not an activity regulated by the FCA.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on permitting private landlords to offset their mortgage interest payments against rental income before income tax is calculated.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Landlords are able to claim tax relief on finance costs (including mortgage interest payments) for their rental property at the basic rate of income tax.
From 2017, the Government phased in a set of reforms to restrict finance cost relief to the equivalent of the basic rate of income tax. This ensures fairness in the income tax system, as previously higher rate taxpayers received a more generous tax relief than those on lower incomes. The reforms mean that all landlords will now receive the same amount of relief. It also reduces the disparity in income tax treatment between homeowners and landlords.
The Government believes that only a small proportion of landlords will be affected by this measure. However, the Government will keep this under review and any decisions on future changes will be taken in the context of the wider public finances.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with Cabinet colleagues on the potential merits of (a) providing support to and (b) bringing forward proposals to help cap mortgage interest rates for people who have been required to pay high standard variable rates since 2008.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The cohort of borrowers referred to in this question are so-called mortgage prisoners. The Financial Conduct Authority’s (FCA) review into mortgage prisoners, published in November 2021, found that the population of mortgage prisoners is varied and complex. There is no single measure to address all of the circumstances this population of mortgage holders face.
The Government has worked with the FCA to implement changes to its mortgage lending rules, removing the regulatory barrier that prevented some customers, who otherwise may have been able to switch, from accessing new products. Any further work on this issue must consider the practicality of solutions and their effects on the wider mortgage market, including the resilience of firms and fairness to other borrowers.
A cap on the Standard Variable Rates (SVRs) charged by inactive firms would be an unprecedented market intervention and would undermine the principle of risk-based pricing that underlies the mortgage market. It would entail risks to the financial stability of firms, who would be unable to vary their rates in line with their funding costs, and would be unfair to borrowers in the wider mortgage market who pay similar rates to mortgage prisoners. It is also important to note that the SVRs charged by inactive firms are in line with those paid by borrowers in the active market.
Ultimately, the pricing of mortgages is a commercial decision for lenders. However, if mortgage borrowers do fall into financial difficulty, FCA guidance requires firms to provide support through tailored forbearance options. The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes clear that repossession must always be the last resort for lenders.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to ensure that customers of Azure Services Ltd who were impacted by the mis-selling of loans for timeshares at the Golden Sands Resort in Malta are able to access financial redress.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Financial Conduct Authority (FCA) has been established as an independent regulator responsible for the supervision and regulation of conduct in financial services. The FCA’s independence from Government does not mean it can act arbitrarily, rather it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.
This direct accountability to Parliament reflects the FCA’s statutory independence and the fact that it is solely responsible for everyday operational decisions without Government approval or direction, and so it is primarily accountable for them. The Government has no plans to support a cross-party parliamentary investigation into the FCA’s handling of issues relating to Azure Services Limited, as this would be a matter for Parliament. That notwithstanding, the Treasury plays an important role in holding the FCA accountable, including through engaging closely with the FCA across all levels of seniority.
The Government recognises the impact on consumers as a result of Azure Services’ business practices whilst it operated as a credit broker without the relevant Office of Fair Trading (OFT) licence and, later on, FCA authorisation. However, the Government notes the decision by Barclays Partner Finance to refund over £210m to customers who took out a loan following an introduction by Azure Services. Barclays Partner Finance is currently putting in place the necessary arrangements for this programme of remediation and has committed to contact impacted customers before the end of the year to set out the next steps.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to support a cross-party investigation into the Financial Conduct Authority's handling of the mis-selling of timeshares by Azure Services Limited.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Financial Conduct Authority (FCA) has been established as an independent regulator responsible for the supervision and regulation of conduct in financial services. The FCA’s independence from Government does not mean it can act arbitrarily, rather it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.
This direct accountability to Parliament reflects the FCA’s statutory independence and the fact that it is solely responsible for everyday operational decisions without Government approval or direction, and so it is primarily accountable for them. The Government has no plans to support a cross-party parliamentary investigation into the FCA’s handling of issues relating to Azure Services Limited, as this would be a matter for Parliament. That notwithstanding, the Treasury plays an important role in holding the FCA accountable, including through engaging closely with the FCA across all levels of seniority.
The Government recognises the impact on consumers as a result of Azure Services’ business practices whilst it operated as a credit broker without the relevant Office of Fair Trading (OFT) licence and, later on, FCA authorisation. However, the Government notes the decision by Barclays Partner Finance to refund over £210m to customers who took out a loan following an introduction by Azure Services. Barclays Partner Finance is currently putting in place the necessary arrangements for this programme of remediation and has committed to contact impacted customers before the end of the year to set out the next steps.