Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact of charges banks have applied to the accounts of charities.
Answered by John Glen
Decisions concerning the provision and pricing of products, including account charges, are commercial decisions for banks. Therefore, while the Government recognises and values the important role of the charitable sector, it would be inappropriate for it to intervene in these decisions.
However, I do recognise the challenges some charitable organisations have been facing. That's why I hosted a roundtable event on 22 March, bringing together lenders and charity representatives to discuss this important issue. This allowed lenders to hear first-hand the problems many charities have experienced, as well as to set out the products they offer, and what charities need to consider in relation to banking requirements.
Following the meeting, UK Finance committed to working with banks and charity representatives to produce guidance aimed at helping charities access and understand banking requirements. In the meantime, charities may find it useful to explore the Business Current Account finder tool developed by UK Finance. This was designed to help businesses compare the full range of available accounts, including fees charged by providers, to find products that best suit their needs. It can be found online at: https://www.betterbusinessfinance.co.uk/account-opening
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential difficulties charities experience opening new bank accounts.
Answered by John Glen
Decisions concerning the provision and pricing of products, including account charges, are commercial decisions for banks. Therefore, while the Government recognises and values the important role of the charitable sector, it would be inappropriate for it to intervene in these decisions.
However, I do recognise the challenges some charitable organisations have been facing. That's why I hosted a roundtable event on 22 March, bringing together lenders and charity representatives to discuss this important issue. This allowed lenders to hear first-hand the problems many charities have experienced, as well as to set out the products they offer, and what charities need to consider in relation to banking requirements.
Following the meeting, UK Finance committed to working with banks and charity representatives to produce guidance aimed at helping charities access and understand banking requirements. In the meantime, charities may find it useful to explore the Business Current Account finder tool developed by UK Finance. This was designed to help businesses compare the full range of available accounts, including fees charged by providers, to find products that best suit their needs. It can be found online at: https://www.betterbusinessfinance.co.uk/account-opening
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will commit to allocating funding for early intervention, such as early help and family support services, to the same level that funding was at in 2010.
Answered by Simon Clarke
Local authorities have responsibility for delivering early help and family support services in their area. At the Spending Review, the government provided the largest annual increases in core funding for local authorities in over a decade. To support further investment in vital family help services, the government also increased funding for the Supporting Families programme to nearly £700m, and provided an investment in Start for Life and Family Hub services of more than £300m, over the next three years.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of basing the recently announced 14th national regional centre in Portsmouth at Lynx House; and where his Department plans to base that centre.
Answered by Lucy Frazer
On 25 January 2022, HMRC announced its intention to establish a new regional centre in Portsmouth, either in Lynx House or elsewhere in the city. It is expected to take some time for HMRC to work through its plans in detail to determine requirements and establish options for the most suitable location for its Portsmouth Regional Centre. This includes navigating a robust system of internal and external approvals, including National Property Controls approval. The location will be announced in due course.
HMRC currently has a presence of around 900 full time equivalent roles in Portsmouth. It will continue to review its detailed requirements, including whether to increase its presence in Portsmouth, while supporting the Government’s Places for Growth ambitions.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of jobs he expects to be maintained by his Department in Portsmouth in the (a) short term and (b) long term in the context of HMRC’s decision to continue its presence in Portsmouth; and if he will make a statement.
Answered by Lucy Frazer
On 25 January 2022, HMRC announced its intention to establish a new regional centre in Portsmouth, either in Lynx House or elsewhere in the city. It is expected to take some time for HMRC to work through its plans in detail to determine requirements and establish options for the most suitable location for its Portsmouth Regional Centre. This includes navigating a robust system of internal and external approvals, including National Property Controls approval. The location will be announced in due course.
HMRC currently has a presence of around 900 full time equivalent roles in Portsmouth. It will continue to review its detailed requirements, including whether to increase its presence in Portsmouth, while supporting the Government’s Places for Growth ambitions.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the 12.5 per cent VAT rate until the end of 2022 for the hospitality sector.
Answered by Lucy Frazer
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced, and then removed, in order to rebuild and strengthen the public finances.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has for further economic regional development in Portsmouth following his Department’s announcement of 25 January 2022 that Portsmouth will become an HMRC strategic regional centre.
Answered by Simon Clarke
As reflected in the announcement that Portsmouth will become the location for a new HMRC regional centre, the Government is committed to the success of the Portsmouth economy. For example, it was announced at Autumn Budget 2021 that Portsmouth had a successful Levelling Up Fund bid and would be given £20m to transform the visitor economy. Nearly £1m was also awarded towards the cost of building the John Jenkins Stadium, as part of the Community Ownership Fund. More widely, the South East has secured 11 successful bids for the £1.7bn first round of the £4.8bn Levelling Up Fund, to improve infrastructure in everyday life. This is in addition to over 14,500 new affordable homes in the South East through Affordable Homes Programme Strategic Partnerships, and almost half a billion pounds’ investment in local roads maintenance funding in the South East between 2022-23 and 2024-25.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to tackle (a) tax avoidance, (b) money laundering and (c) other financial crimes following the publication of the Pandora Papers.
Answered by John Glen
This government is committed to making the UK a hostile place for illicit finance and economic crime. We are determined to crack down on dirty money and financial exploitation, to protect our security and prosperity. We have taken action through our ‘No Safe Havens’ strategy to ensure the correct UK tax is paid; and our landmark 2019 Economic Crime Plan outlines a comprehensive response to ensure the UK cannot be abused for economic crime.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to support the brewery and pub sector in its recovery from covid-19 lockdowns as part of his Department’s review of alcohol duty; and if he will make a statement.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Pubs and breweries continue to benefit from a variety of support measures, including the Coronavirus Job Retention Scheme, which has been extended until the end of September 2021; a new UK-wide recovery loan scheme to make available loans between £25,001 and £10 million; and the Additional Restrictions Grant, which provides an additional £425 million of discretionary funding to support local businesses.
Recognising the challenges faced by the beer and pub industry, the Government also decided to freeze alcohol duty at the 2021 Budget.
The alcohol duty review is considering long-term reforms, and further updates will be provided in due course. The Government continues to keep all taxes under review.