Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Crown Estate on the steps it is taking to manage its assets in the public interest alongside profit maximisation when it is auctioning off plots of seabed to offshore wind developers.
Answered by James Murray - Chief Secretary to the Treasury
The Crown Estate is an independent commercial business established by Parliament and returns its net profits to the Consolidated Fund. It has a statutory duty to secure best consideration while exercising good management.
HM Treasury Ministers and officials engage regularly with The Crown Estate.
The Crown Estate runs transparent, competitive processes in offshore wind leasing that treat bidders equally and balance commercial outcomes alongside its wider environmental, social and economic objectives.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact on community choirs of extending Orchestra Tax Relief to include vocal ensembles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions.
Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus.
In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness.
Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has plans to consult with representatives of choirs and other vocal ensembles on the scope of Orchestra Tax Relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions.
Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus.
In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness.
Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure parity of access to creative tax reliefs between orchestras and choirs.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government supports the creative industries, including orchestras, through funding and via the tax system. Orchestra Tax Relief (OTR) was introduced to recognise and sustain the distinct cultural and economic activity associated with orchestral productions.
Under current rules, qualifying concerts must be performed by a group of at least twelve instrumentalists. The human voice is not considered an instrument for these purposes. However, orchestra concerts with a vocal element are eligible for the relief providing that the orchestra has at least 12 instrumentalists, and the instrumentalists are the primary focus.
In considering any changes to existing tax reliefs or introducing new ones, Government has to consider a wide range of factors, including the specific aims of the relief, the costs and complexity of designing and administering new provisions, and fairness.
Decisions on tax are taken by the Chancellor at fiscal events, in the context of overall public finances.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the adequacy of the use of Defence Bonds for financing military expenditure; and whether her Department has had recent discussions with financial investors on their issuance.
Answered by Darren Jones - Minister for Intergovernmental Relations
As the Prime Minister announced in February, we are fully funding the path to 2.5% by reducing ODA spending. That is why we can announce a £10.9bn real-terms increase to the MOD budget over the Spending Review period. On top of this, we are recognising the contribution provided by our intelligence agencies on defence, in line with practice among our Allies. This means that in 2027-28 we expect to reach 2.6% of GDP
The increase in defence spending will be funded by reducing ODA from 0.5% to 0.3% of Gross National Income (GNI) by 2027, and reinvesting it into defence.
The government’s core gilt programme is the most stable and cost-effective way of raising finance to fund the day-to-day activities of the government, owing to the depth and liquidity of the market. This is, in part, down to the fungibility of the instruments issued to the market. Issuing bonds aimed at financing specific areas of spending risks fragmenting the gilt market, which would not be consistent with the government’s debt management objective of minimising the long-term cost of financing, taking into account risk.
The government keeps under regular review the introduction of new debt instruments. The government would however need to be satisfied that any new instrument would meet value-for-money criteria, enjoy strong and sustained demand in the long term, and be consistent with wider fiscal objectives.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has considered changing the withdrawal percentage for Lifetime ISAs.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Lifetime ISA (LISA) is designed to support people to achieve the aspiration of homeownership, or to build up savings for their later life. LISA funds, including any Government bonus, can be withdrawn for the purchase of a first home under £450,000, in the case of terminal illness or from the age of 60.
Any unauthorised withdrawals are subject to a 25% withdrawal charge. This recoups the Government bonus, any interest or growth arising from it, and a proportion of the individual’s initial savings. Reducing the withdrawal charge would encourage the use of LISAs in ways for which they were not intended.
The Government keeps all aspects of savings tax policy under review.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the adequacy of the compensation provided to Equitable Life policyholders.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 and there are no plans to reopen any decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will increase the cap on Lifetime ISAs.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Data from the latest UK House Price Index shows that while the average price paid by first-time buyers has increased, it is still below the LISA property price cap in all regions of the UK except for London, where the average price paid is affected by boroughs with very high property values.
The Government keeps all aspects of savings tax policy under review.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will undertake an investigation into the Financial Conduct Authority's regulation of Collateral (UK) Limited.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The conduct of Collateral’s Directors was plainly unacceptable, as evidence by their conviction for fraud and the criminal sentence that they are now serving.
More widely, the Government does not have plans to commence an investigation into the Financial Conduct Authority's regulation of Collateral.
The FCA has investigative and enforcement powers of its own and has already commenced investigations into particular peer-to-peer lenders, certain of which are ongoing.
In the case of Collateral specifically, the FCA has undertaken an internal investigation already, including into its own role – the outcome of which is publicly available.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will remove VAT on (a) labour and (b) materials for restoration work on listed buildings.
Answered by James Murray - Chief Secretary to the Treasury
The Government has no plans to remove VAT on restoration work on listed buildings.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services.
Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.
The Department for Culture, Media and Sport administer the Listed Places of Worship Grant Scheme. This provides grants towards VAT paid on repairs and maintenance to the nation's listed places of worship.
The Government keeps all tax policy under review, and any decisions on tax policy will be announced at fiscal events in the context of the overall public finances.