Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations his Department has received from (a) British Airways and (b) International Airlines Group on the Government's support for the aviation sector.
Answered by Kemi Badenoch - President of the Board of Trade
Treasury Ministers and officials meet with a wide range of stakeholders across sectors as part of ongoing policy development and implementation.
Ministers and officials from the Department for Transport are in regular contact with airlines, airports and unions to understand the impact that COVID-19 is having on the sector and its workers.
Due to commercial sensitivity, the Government cannot comment on individual companies.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of the Government's financial support for the aviation industry during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the challenging times facing the aviation industry as a result of COVID-19. Firms experiencing difficulties as a result of COVID-19 can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital, flexibilities with tax bills, and financial support for employees. The aerospace sector and its aviation customers are being supported with over £8.5 billion support through the Bank of England’s Covid Corporate Financing Facility, grants for research and development, loan guarantees and support for aerospace exports.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether companies that have (a) made compulsory redundancies and (b)re-hired workers on new terms and conditions will be eligible to receive payments under the job retention bonus.
Answered by Jesse Norman
To ensure that firms are encouraged to keep employees as demand returns, the Chancellor announced the Job Retention Bonus in the Plan for Jobs on 8 July.
Alongside other conditions, to be eligible, the employees for which the employer will receive the grant will need to have been continuously employed until 31 January 2021 and still be employed by the same employer as of 31 January 2021. Employees cannot be serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.
Full guidance about the Job Retention Bonus will be published at the end of September.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to update his Department's Green Book to include a social value case.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government is currently reviewing the Green Book - the government’s core guidance on how to develop and appraise schemes against government objectives – to ensure it is consistent with the Government’s ambition to level-up opportunity across the United Kingdom.
The economic case within the Green Book is concerned with social value. It requires all impacts – social, environmental, economic, financial etc. – to be assessed relative to what would have taken place in absence of intervention, referred to in the Green Book as business as usual. The relevant costs and benefits are those for UK society overall, not just to the public sector or originating institution.
As part of the review, the Chancellor set out at the Budget earlier this year that the government is keen to ensure that government spending is not just narrowly focused on where it will bring the highest immediate return, but also on where it may unlock the productive potential of an area and achieve broader long-term benefits.
The review is looking to enhance the strategic development and assessment of projects, consider how to assess and present local impacts, and looking to develop new analytical methods for place-based interventions.
An updated Green Book will be published later in the year, and early findings will inform the Spending Review in Autumn.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether firms who (a) have and (b) are in the process of carrying out compulsory redundancies will receive payments under the job retention bonus.
Answered by Jesse Norman
To ensure that the firms are encouraged to keep employees as demand returns, the Chancellor announced the Job Retention Bonus in the Plan for Jobs on 8 July.
To be eligible, the employees for which the employer will receive the grant will need to:
Further detail on the Job Retention Bonus will be available at the end of the month and full guidance will be available in the Autumn.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether employers who have carried out compulsory redundancies and then re-hired former workers will receive payments under the job retention bonus.
Answered by Jesse Norman
To ensure that the firms are encouraged to keep employees as demand returns, the Chancellor announced the Job Retention Bonus in the Plan for Jobs on 8 July.
To be eligible, the employees for which the employer will receive the grant will need to:
Further detail on the Job Retention Bonus will be available at the end of the month and full guidance will be available in the Autumn.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will establish a statutory definition of the self-employed to better support status determinations for tax purposes under IR35.
Answered by Jesse Norman
Employment status is straightforward for the vast majority of people. HM Revenue and Customs (HMRC) developed the Check Employment Status for Tax (CEST) tool in 2017 in conjunction with tax specialists, contractors, and other stakeholders, to support businesses in applying the off-payroll working rules correctly. CEST was further enhanced in November 2019.
In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. For those more complex or finely balanced cases where CEST produces an undetermined outcome, HMRC provide detailed guidance and dedicated support, including in the Employment Status Manual: https://www.gov.uk/government/publications/employment-status-manual. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC's guidance.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the accuracy of the Check Employment Status Tool in correctly identifying the employment status of individuals in relation to IR35.
Answered by Jesse Norman
HMRC developed the Check Employment Status for Tax (CEST) online tool to help organisations and individuals determine employment status for tax and decide whether the off-payroll working rules apply.
The CEST service was developed in conjunction with tax specialists, contractors and other stakeholders. It was rigorously tested against established case law and settled cases to ensure it provides accurate results in line with current binding judgments. In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC’s guidance.
In November 2019, HMRC launched an enhanced version of CEST, having worked with over 300 stakeholders to identify improvements. The tool’s enhancements included making questions and the results clearer, increasing the number of questions to provide a more thorough assessment, and building in features to reduce user errors.
Since launch, HMRC have monitored customer feedback and have updated the tool’s language where this improves the customer experience. This includes providing additional help text and links to off-payroll guidance in HMRC’s Employment Status Manual. HMRC are continuing to monitor feedback with a view to making future usability updates.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effectiveness of the enhanced Check Employment Status Tool in relation to IR35.
Answered by Jesse Norman
HMRC developed the Check Employment Status for Tax (CEST) online tool to help organisations and individuals determine employment status for tax and decide whether the off-payroll working rules apply.
The CEST service was developed in conjunction with tax specialists, contractors and other stakeholders. It was rigorously tested against established case law and settled cases to ensure it provides accurate results in line with current binding judgments. In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC’s guidance.
In November 2019, HMRC launched an enhanced version of CEST, having worked with over 300 stakeholders to identify improvements. The tool’s enhancements included making questions and the results clearer, increasing the number of questions to provide a more thorough assessment, and building in features to reduce user errors.
Since launch, HMRC have monitored customer feedback and have updated the tool’s language where this improves the customer experience. This includes providing additional help text and links to off-payroll guidance in HMRC’s Employment Status Manual. HMRC are continuing to monitor feedback with a view to making future usability updates.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to improve the accuracy of the Check Employment Status Tool since November 2019.
Answered by Jesse Norman
HMRC developed the Check Employment Status for Tax (CEST) online tool to help organisations and individuals determine employment status for tax and decide whether the off-payroll working rules apply.
The CEST service was developed in conjunction with tax specialists, contractors and other stakeholders. It was rigorously tested against established case law and settled cases to ensure it provides accurate results in line with current binding judgments. In the vast majority of uses, CEST will determine whether the engagement is employed or self-employed for tax purposes. HMRC will stand by CEST’s results provided accurate and correct information is used, in accordance with HMRC’s guidance.
In November 2019, HMRC launched an enhanced version of CEST, having worked with over 300 stakeholders to identify improvements. The tool’s enhancements included making questions and the results clearer, increasing the number of questions to provide a more thorough assessment, and building in features to reduce user errors.
Since launch, HMRC have monitored customer feedback and have updated the tool’s language where this improves the customer experience. This includes providing additional help text and links to off-payroll guidance in HMRC’s Employment Status Manual. HMRC are continuing to monitor feedback with a view to making future usability updates.