Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support the hospitality industry; and if he will make an assessment of the potential merits of reducing VAT for that industry.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
At Autumn Statement 2023, the Government announced a package of business rates changes and tax cuts, including extending the Retail, Hospitality and Leisure relief scheme at 75 per cent, up to a cash cap of £110,000 per business for 2024-2025. This is tax cut worth almost £2.4 billion for around 230,000 properties.
VAT is the UK's third largest tax forecast to raise £173 billion in 2023/24, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.
While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to help support small businesses in the hospitality industry; and whether he has made a recent assessment of the potential merits of reviewing the VAT threshold for those businesses.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government understands the vital role the hospitality industry plays in the UK economy. This is why, for example, the Government announced a package of business rates support at Autumn Statement 2022 which means businesses in the retail, hospitality and leisure sectors, including pubs, will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75 per cent off their business rates bill, up to a cap of £110,000 per business.
The Government recognises that accounting for VAT can be a burden on small businesses. At £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. While some businesses have argued that a higher threshold would reduce administrative and financial burdens, others contend that a lower threshold would provide a fairer competitive environment.
The Government continues to keep all taxes under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of the report by Kath Scanlon, Bob Pannell and Peter Williams entitled Releasing the mortgage prisoners: proposed solutions and illustrative costings, published on 1 March 2023 February 2023; and whether he plans to implement the recommendations of that report.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government understands that being unable to switch your mortgage can be extremely stressful, and, alongside the Financial Conduct Authority and industry, have shown we are willing to act through the introduction of a ‘modified affordability assessment’. We are also regularly in contact with key stakeholders, including recently with the All Party Parliamentary Group on Mortgage Prisoners.
The Government remains committed to this issue, and we are considering the proposals put forward in this report very carefully. While we cannot force lenders to lend to borrowers they consider too high a risk, the Government welcomes any further practical and proportionate solutions that would meaningfully assist affected borrowers and be fair to other borrowers in the wider market.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of amending the tax system to reflect the difference in employer national insurance contributions for those who are employed compared to those who are self-employed; and if he will make an assessment of the potential impact of that policy on levels of (a) recruitment and (b) retention in the construction industry.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government recognises the key role that entrepreneurs play in the UK economy and will help them succeed by making the UK the best place in the world to start and grow their businesses.
The National Insurance contributions (NICs) system was designed so that both employees and employers pay NICs, so that the burden for paying contributory benefits as well as contributing to the funding of the NHS, was spread as widely and fairly as possible. As self-employed people do not have a permanent employer, it is right that they only pay self-employed NICs.
To support small businesses to grow fulfil their potential and support them with the costs of employment, the Government increased the Employment Allowance from £4,000 to £5,000 in April 2022 which means that businesses and charities with an employer NICs bills of £100,000 or less in the previous tax year are able to claim up to £5,000 off their employer NICs bills. In 2021-22, the construction industry was the second larger beneficiary by sector of the Employment Allowance, with 145,000 employers benefitting from the allowance.
The Government is also providing businesses with the support they need to invest and innovate, through measures like permanently setting the Annual Investment Allowance at its highest ever level of £1 million; introducing a £13.6 billion package of business rates support; and full expensing which allows business to write off the cost of investment in one go.
The Government keeps all taxes under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the Rural Fuel Duty Relief Scheme to fuel retailers in Ynys Môn constituency in the context of its rural location.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Rural Fuel Duty Relief gives support to motorists by compensating fuel retailers in some rural areas, which meet all relevant criteria. This set of criteria are publicly set out at the following page: https://www.gov.uk/guidance/rural-duty-relief-scheme-notice-2001
All taxes, including fuel duty, remain under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to update the UK Government Green Financing Framework, published in June 2021, to allow the proceeds of green gilts to be used for nuclear energy projects.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As set out in the British Energy Security Strategy, nuclear energy is a key part of the UK’s low-carbon energy mix alongside solar, wind and other energy sources. These technologies are important in tackling climate change and diversifying the UK’s supply, contributing to the UK’s energy security and sustainable growth.
The UK Government Green Financing Framework was set in June 2021, with its current exclusion of nuclear energy projects. Any changes to the Framework in the future to include nuclear energy would be transparently published by the Government.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to reflect the recent rise in fuel prices in Approved Mileage Allowance Payments for public sector workers.
Answered by Felicity Buchan - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government sets the Approved Mileage Allowance Payment (AMAP) rates to minimise administrative burdens.
AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, depreciation, servicing, insurance, and Vehicle Excise Duty. As it is an average, the rate is necessarily more appropriate for some drivers than others.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. Where payments exceed the relevant AMAP rate, there will be an Income Tax and National Insurance charge on the difference. It is therefore ultimately up to employers, including individual public sector organisations, to determine the rate at which they reimburse their employees.
Like all taxes and allowances, the Government keeps the AMAP rate under review and any changes are considered by the Chancellor.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the UK Mortgage Prisoners Support Group on the (a) depth and (b) severity of the situation people unable to move out of high interest loans are facing.
Answered by Richard Fuller
Ministers last met with UK Mortgage Prisoners earlier this year and exchange regular correspondence with them.
The Government has worked with the Financial Conduct Authority (FCA) on interventions to help mortgage prisoners switch. Resources have also been put in place so that mortgage prisoners can understand their options better, including their ability to switch, and access guidance through MoneyHelper. These resources can be found online at: https://www.moneyhelper.org.uk/en/homes/buying-a-home/help-for-mortgage-prisoners.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits to consumers of extending the Rural Fuel Duty Relief scheme to (a) Ynys Môn constituency and (b) other rural parts of Wales.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Rural Fuel Duty Relief gives support to petrol and diesel users by compensating fuel retailers in some rural areas. The criteria for the scheme are set out in a public notice that can be found at: https://www.gov.uk/guidance/rural-duty-relief-scheme-notice-2001.
At Spring Statement 2022 in response to fuel prices reaching record levels, the government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre. This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
The government has no current plans to revise Rural Fuel Duty Relief, but keeps all taxes under review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce fuel costs for essential services and industries; and if he will bring forward a fuel duty rebate for essential services and industries to help reduce costs in supply chains.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Spring Statement 2022 in response to fuel prices reaching record levels, the government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre.
This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.
All taxes, including fuel duty, remain under review.