Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his statement of 17 December 2020, what the eligibility criteria will be for further compensation for former London Capital and Finance bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Written Ministerial Statement of 17 December 2020 outlined the three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme, and the Financial Conduct Authority’s Complaints Scheme.
The statement also announced that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders . The Government will announce further details, including the eligibility criteria, in due course.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to publish an impact assessment of the Trade and Cooperation Agreement each quarter for 2021, with reference to (a) sectors of the economy and (b) all regions and nations of the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government does not intend to produce an Impact Assessment. We have consistently said that it would be impossible for a single model, number or scenario to capture that complexity or represent the varying impacts that will be felt across different parts of the economy.
The Government has secured a deal that will benefit families and businesses across the UK, we can now take full advantage of the opportunities available to us.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the support available under the extended Coronavirus Job Retention Scheme to people who were made unemployed between 20 March 2020 and 22 September 2020.
Answered by Jesse Norman
An employer can claim for employees who were employed and on their PAYE payroll on 30 October 2020. In addition, employees that were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) who were made redundant or stopped working afterwards can be re-employed and claimed for under the CJRS extension.
This cut-off date aims to include as many people as possible, while also addressing the risk of fraud that existed as soon as the fact that the Government was providing a further employment support scheme became public.
The Government has also provided wider support to individuals throughout the pandemic. In March, the Government announced a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local Housing Allowance rates for UC and Housing Benefit claimants.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of extending the eligibility criteria for the Self-Employment Income Support Scheme to people who set up their business after 6 April 2019.
Answered by Jesse Norman
The practical issues that prevented the Government from being able to include the newly self-employed in 2019-20 in the original Self-Employment Income Support Scheme (SEISS), namely that HM Revenue and Customs (HMRC) will not have access to their self-assessment returns in order to be able to verify their eligibility, still remain. The latest year for which HMRC have tax returns for all self-employed individuals is 2018/19. 2019/20 returns are not due until the end of January 2021.
Unlike for employees, self-employed income is not reported monthly, but at the end of each tax year on the individual’s Income Tax Self Assessment return. This means that the most reliable and up-to-date record of self-employed income is from 2018-19 tax returns.
The SEISS continues to be just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and other business support grants.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the business rates holiday to include the flexible workspace sector during the covid-19 outbreak.
Answered by Jesse Norman
The Government has provided enhanced support to the retail, hospitality and leisure sectors through business rates relief given the direct and acute impacts of the COVID-19 pandemic on those sectors.
A range of measures to support all businesses, including those not eligible for business rates relief such as flexible workspaces, has also been made available.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many UK firms applied for a duty deferment account in (a) July 2020 and (b) August 2020.
Answered by Jesse Norman
HMRC received 58 applications for duty deferment accounts in July and 88 in August.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many UK firms have applied for a duty deferment account for VAT on imported goods.
Answered by Jesse Norman
Since 1 April 2020, 283 UK businesses have applied for a duty deferment account which allows them to defer payments of import VAT.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many individuals were qualified as customs intermediaries in the UK in (a) July and (b) August 2020.
Answered by Jesse Norman
HMRC do not employ customs intermediaries directly and there are no set qualifications.
The UK has a well-established industry of customs intermediaries that serve British businesses trading outside the EU. The sector is varied and made up of a number of different business models including specific customs brokers, freight forwarders and fast parcel operators; all of which require differing numbers of staff.
The Government has now made available a total of £84 million to grow the sector to encompass EU trade after 2020. This is one part of the measures to support the customs intermediary sector to meet the increased demand it will see from traders at the end of the transition period.
The Government continues to monitor progress carefully and keeps support under review.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reasons his Department did not renew freeport licenses by Statutory Instrument when they expired in 2012.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Pre-2012 UK Freeports model was were not well used, in large part because they offered limited only basic customs benefits and were in fixed locations inside ports.
The government has consulted on the introduction of a new Freeport model which will include a wider package of policy measures, including customs measures and tariff benefits, tax reliefs and planning freedoms to boost trade, regenerate deprived communities and promote innovation. The consultation closed on 13 July, and the responses are currently being carefully considered.
The government will ensure all the necessary safeguards are in place to minimise any risk of money laundering and tax evasion and will continue to meet international standards. The government’s consultation response will set out more detail on this, as well as on how any risk of harmful job displacement will be managed.
Asked by: Paul Blomfield (Labour - Sheffield Central)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect of freeports on the risk of money laundering and tax evasion in the UK.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Pre-2012 UK Freeports model was were not well used, in large part because they offered limited only basic customs benefits and were in fixed locations inside ports.
The government has consulted on the introduction of a new Freeport model which will include a wider package of policy measures, including customs measures and tariff benefits, tax reliefs and planning freedoms to boost trade, regenerate deprived communities and promote innovation. The consultation closed on 13 July, and the responses are currently being carefully considered.
The government will ensure all the necessary safeguards are in place to minimise any risk of money laundering and tax evasion and will continue to meet international standards. The government’s consultation response will set out more detail on this, as well as on how any risk of harmful job displacement will be managed.