Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the VAT reduction offered to hospitality services until March 2021 to (a) hairdressers, (b) beauty services and (c) other close contact services.
Answered by Jesse Norman
The temporary reduced rate of VAT was introduced on 15 July in order to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.
The Government has announced a significant package of support to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the temporary 5 per cent reduced rate of VAT for hospitality, hotel and holiday accommodation businesses for the 2021-22 financial year.
Answered by Jesse Norman
The Government initially cut the rate of VAT applied to hospitality, accommodation and attractions, from 20 per cent to 5 per cent, for a period of six months to 12 January 2021.
The Government extended this relief in September 2020, and it will now end on 31 March 2021. The reduced rate aims to support the cash flow and viability of over 150,000 businesses in the affected sectors and will help protect 2.4 million jobs.
The Government keeps all taxes under review.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend business rates relief for businesses in the retail, hospitality and leisure sectors in England for the 2021-22 financial year.
Answered by Jesse Norman
The Government has taken the unprecedented step of providing almost £10 billion in business rates relief this year. All business rates reliefs in England will be considered through the business rates review.Business rates are devolved in Scotland and are a matter for the Scottish Government.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of continuing finance for the Union Learning Fund to provide support for workers affected by the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
My officials continually consider assessments of the value for money of public spending.
The government has provided unprecedented support for jobs, and remains committed to investing in adult skills and retraining. The Plan for Jobs provided funding for skills and training to help workers affected by the Covid-19 outbreak, and the forthcoming Spending Review will confirm details of the National Skills Fund to help more people learn new skills and prepare for the jobs of the future.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of mortgage holidays taken during the covid-19 outbreak on the credit ratings of mortgage prisoners.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Following the Coronavirus outbreak, the Government worked quickly with lenders and financial regulators to give people access to payment holidays on their mortgages. This gives customers a much-needed respite period, where no repayments on these products are due. It was necessary to bring this temporary measure in, in order to give customers time to smooth out their finances that may have taken a hit by the pandemic.
The FCA issued guidance to all firms that engage in mortgage activities, this includes all borrowers whose mortgage is in a closed book or owned by an inactive lender.
We were clear from the start, that anyone taking a one of these payment holiday should not suffer a worsening arrears status.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on small, independent breweries of the proposal to convert Small Brewers Relief from a percentage formula to a cash basis measurement.
Answered by Kemi Badenoch - President of the Board of Trade
The proposal to convert Small Brewers Relief (SBR) to a cash basis would affect small breweries entitled to SBR, but would only have an impact if there are future changes to the value of the relief. The Treasury will consult further on Small Brewers Relief later this Autumn.Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much his Department has spent on private debt collection agencies in (a) fees and (b) the proportion of funds collected for the purposes of recovering tax credit debts in each financial year since 2010-11.
Answered by Jesse Norman
The table below details HMRC’s spending on Debt Collection Agencies between 2010/11 and 2019/20.
None of the funds collected are used for the purpose of recovering tax credits. HMRC request funding from HMT through fiscal measures.
Total | % Spent on TC | |
2010-11 | £ 3.72m | 0.00% |
2011-12 | £ 11.08m | 0.00% |
2012-13 | £ 13.06m | 0.00% |
2013-14 | £ 9.34m | 11.61% |
2014-15 | £ 10.89m | 19.85% |
2015-16 | £ 16.77m | 31.59% |
2016-17 | £ 26.25m | 24.54% |
2017-18 | £ 32.10m | 20.50% |
2018-19 | £ 26.02m | 28.83% |
2019-20 | £ 26.16m | 24.03% |
Total | £ 175.39m | 20.16% |
Further information about payments to Integrated Debt Services Ltd, who manage the contract between HMRC and the Debt Collection Agencies contracted to act on HMRC’s behalf, is published on GOV.UK: https://www.gov.uk/government/collections/spending-over-25-000.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to publish the further consultation on the proposed reforms of Small Brewers Relief.
Answered by Kemi Badenoch - President of the Board of Trade
As previously announced, the consultation will be published in the Autumn.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on small, independent brewers of the proposal to reduce the production threshold at which Small Brewers Relief starts to taper.
Answered by Kemi Badenoch - President of the Board of Trade
The Government anticipates that by replacing the existing taper with a more gradual one spread over a wider range of production, small breweries will find it easier to grow and expand.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of a period of statutory maternity pay being used to calculate a reduced furlough pay entitlement for returning mothers on variable pay; and if he will make a statement.
Answered by Jesse Norman
Employees on variable pay who have been on Statutory Maternity Pay or other forms of Parental Leave are eligible to apply for furlough pay under the Coronavirus Job Retention Scheme. Eligible employees will be entitled to 80% of the higher rate of two calculations: either the wages earned in the corresponding calendar period in the tax year 2019 to 2020, or the average wages payable in the tax year 2019 to 2020. These measures have been put in place to cover a wide range of contractual and working arrangements and are designed to mitigate situations where individuals have low pay in a certain month for any reason.