Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of furlough agreements that purport to oblige employees (a) to pay back the contributions that the employer makes to their furlough and (b) who choose not to return to work to be liable to their employers for those contributions.
Answered by Jesse Norman
The scheme rules make it clear that employers must pass on 100 per cent of the grant to their furloughed employees and employees must receive at least 80 per cent of their reference pay. HMRC have powers to check and recover any amounts claimed where the employee has not been paid accordingly. If workers are concerned they are not receiving their entitlement, they should report their employer to HMRC via the online fraud reporting tool, or call HMRC’s fraud hotline. The Government will retain the right to retrospectively audit all aspects of the scheme with scope to claw back fraudulent or erroneous claims.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 1 September 2020 to Question 76681, how many (a) high cost credit, (b) log book loan, (c) BNPL, (d) credit card, (d) personal loan, and (e) credit companies have been prosecuted under the Consumer Protection from Unfair Trading Regulations 2008.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
This question has been passed on to the Financial Conduct Authority (FCA). The FCA will reply to directly to the honourable Member by letter. A copy of the letter will be placed in the Library of the House.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, on what dates (a) he and (b) Ministers in his Department held discussions with representatives from (i) childcare, (ii) afterschool clubs and (iii) childminding providers on the effect of the covid-19 outbreak on their industry.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The department regularly meets a range of stakeholders, which includes discussion of the impacts of COVID-19 on businesses, including the childcare sector.
Since 1 June, early years settings have been able to welcome back children of all ages. All providers of wraparound childcare, and other out-of-school settings, are able to operate for both indoor and outdoor provision, provided they have safety measures in place.
The Government has announced unprecedented support for businesses, including the early years sector, to protect against the current economic emergency. For childcare providers, this includes business rates relief for nurseries, a range of loans and grants, the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme, and continued early years entitlement funding.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
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 for the hospitality and leisure sectors to yoga and fitness studios and gyms.
Answered by Jesse Norman
In light of the Covid-19 outbreak, the Chancellor has introduced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates at a cost of more than £300 billion.The temporary reduced rate of VAT will support the tourism and hospitality sectors and will help over 150,000 businesses and protect over 2.4 million jobs. Expanding the scope of the temporary VAT reduction would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the Financial Conduct Authority issuing guidance on communicating the (a) potential effect on credit score, (b) potential sale of debts to collection agencies and (c) other risks of buy now pay later products to people considering using those products.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
On 12 November 2019, the Financial Conduct Authority (FCA) introduced new rules for the buy now pay later market following its high-cost credit review. The rules prevent firms from charging backdated interest on the amount repaid by the customer during the offer period, requires that promotions contain balanced and appropriate information, and means that firms must give customers prompts to remind them when offers are due to end.
The FCA continues to monitor the buy now pay later market to identify areas that may cause consumers harm and will issue further guidance whenever it deems it necessary.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many companies incorporated outside the UK have received assistance through the (a) Coronavirus Job Retention Scheme, (b) ability to defer VAT, (c) Coronavirus Large Business Interruption Scheme and (d) Covid-19 Corporate Financing Facility.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has published aggregate application and approval figures on the Coronavirus Large Business Interruption Loan Scheme (CBILS) since 10 May but does not hold specific information relating to individual companies who have accessed these schemes. HMRC publishes weekly management information on the Coronavirus Job Retention Scheme (CJRS) and monthly management information on VAT deferrals. On 11 June HMRC published the Official Statistics for the Coronavirus Job Retention Scheme which included a breakdown of recipients by sector, but not individual organisations or companies. The Bank of England is responsible for publishing data on the Covid-19 Corporate Financing Facility (CCFF), including a list of organisations or companies who have made applications.
The Government does not collect data on how many companies incorporated outside of the UK have received assistance through CJRS, VAT deferral, CLBILS or CCFF. However, as laid out in the guarantee agreement, all firms borrowing through CLBILS must be engaged in trading activity in the UK at the Initial Drawdown Date and the finance facility must be used to support their trading activity in the UK. Compensation from the CJRS goes directly to the pockets of UK based workers and any VAT deferred must be repaid to HMRC by the end of the financial year.
All firms applying to the CCFF must meet a test applied by the Bank of England to show that they make a material contribution to the UK economy, including when incorporated overseas. Since 4 June the Bank of England have been publishing the names of companies with commercial paper currently outstanding through the CCFF. This is a unique level of transparency, equivalent schemes in the Eurozone and United States do not publish the names of scheme users.
Government support is aimed at businesses in genuine need. Our current measures are well-targeted at such businesses, bearing in mind the need to act very quickly to deliver this unprecedented package. We expect everyone to act responsibly and in the spirit of the package, and only claim and use support as intended.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many applications for assistance under the (a) Coronavirus Job Retention Scheme, (b) ability to defer VAT, (c) Coronavirus Large Business Interruption Scheme and (d) Covid-19 Corporate Financing Facility have been rejected as a result of the applicant having been found not to meet the criteria for being based in the UK.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has published aggregate application and approval figures on the loan schemes, including the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and on VAT deferral, since 12 May, but does not hold specific information relating to applications of individual organisations or companies which have been rejected as a result of the applicants having been found not to meet the criteria for being based in the UK. These can be accessed here: https://www.gov.uk/government/collections/hmrc-coronavirus-covid-19-statistics#history. The Government is actively considering what further data can be made available in the future.
The Bank of England is responsible for publishing data on the Covid-19 Corporate Financing Facility (CCFF), including a list of organisations or companies who have made applications. This can be accessed here: https://www.bankofengland.co.uk/markets/bank-of-england-market-operations-guide/results-and-usage-data.
HMRC published Official Statistics for the Coronavirus Job Retention Scheme (CJRS) on 11 June, including a breakdown of sectoral recipients but not applications of individual organisations or companies which have been rejected as a result of the applicants having been found not to meet the criteria for being based in the UK. These can be accessed here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/891249/Coronavirus_Job_Retention_Scheme_Statistics_June_2020.pdf
Our current support measures are well-targeted at the businesses and individuals who most need support, bearing in mind the need to act quickly to deliver this unprecedented package. The schemes are designed to support jobs in Britain. Sometimes this will involve foreign companies who employ people in the UK. We shouldn’t deny support to British workers, or to businesses that make a valuable contribution to the UK.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how HMRC determines whether a company is based in the UK in terms of eligibility for covid-19-related business support; and whether companies which have UK offices but are incorporated in the Cayman Islands are eligible for that support.
Answered by Jesse Norman
The Government support package is targeted at the businesses and individuals who most need support, while ensuring measures are accessible, certain and introduced in a timely manner to protect livelihoods.
HMRC administer the Coronavirus Job Retention Scheme (CJRS), Coronavirus Statutory Sick Pay Rebate Scheme (CSSPRS) and Self-Employment Income Support Scheme (SEISS). The eligibility criteria vary between the schemes.
To claim under CJRS, the employer must have created and started a PAYE payroll scheme on or before 19 March 2020, be enrolled for PAYE online and have a UK bank account. They can only claim for furloughed employees where a Real Time Information (RTI) submission notifying payment in respect of that employee to HMRC was made on or before 19 March 2020. From 1 July, they can only claim for employees that have been furloughed for at least three consecutive weeks any time between 1 March and 30 June.
To claim under the CSSPRS the employer must have fewer than 250 employees before February 2020, be enrolled in a PAYE payroll scheme, and have an employee that was off work due to coronavirus, self-isolating, or shielding.
Self-employed individuals, including members of partnerships, are eligible for the SEISS if they have submitted their Income Tax Self-Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.
HMRC are also responsible for VAT and Income Tax Self Assessment, for which certain payments have been deferred. These are general measures which apply to all taxpayers liable to pay the taxes in question.
The schemes are designed to support both British businesses and workers in Britain who pay their taxes and would otherwise lose their jobs.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether Stonegate Pub company limited has received support under the (a) Coronavirus Job Retention Scheme, (b) ability to defer VAT, (c) Coronavirus Large Business Interruption Scheme and (d) Covid-19 Corporate Financing Facility.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has published aggregate application and approval figures on the loan schemes, including the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and on VAT deferral, since 12 May, but does not hold specific information relating to individual organisations or companies which have accessed these schemes. These can be accessed here: https://www.gov.uk/government/collections/hmrc-coronavirus-covid-19-statistics#history. The Government is actively considering what further data can be made available in the future.
The Bank of England is responsible for publishing data on the Covid-19 Corporate Financing Facility (CCFF), including a list of organisations or companies who have made applications. This can be accessed here: https://www.bankofengland.co.uk/markets/bank-of-england-market-operations-guide/results-and-usage-data.
Finally, HMRC published Official Statistics for the Coronavirus Job Retention Scheme (CJRS) on 11 June, including a breakdown of sectoral recipients but not individual organisations or companies. These can be accessed here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/891249/Coronavirus_Job_Retention_Scheme_Statistics_June_2020.pdf
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans the Government has to support workers who are diagnosed with a condition that makes them extremely clinically vulnerable to covid-19 after the 10 June 2020 cut-off date for an employer to decide to furlough staff under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
Employees who are unable to work because they are shielding in line with public health guidance can be furloughed under the Coronavirus Job Retention Scheme (CJRS). However, such an employee can only continue to be furloughed from 1 July if they have previously been furloughed, for any reason, for at least 3 consecutive weeks taking place any time between 1 March and 30 June.
The Government has set out an unprecedented package of financial support to help the country through the coronavirus pandemic. Closing the scheme to new entrants is necessary for a gradual closure of the scheme. The focus is now on bringing those currently furloughed back into productive employment. CJRS is only one part of the support offered to shielded people, which also includes help with accessing food, medicines and care, alongside financial support through Statutory Sick Pay and the welfare system. Further details about the future of shielding are due to be announced the week commencing 15 June.