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 VAT on community defibrillators and the cabinets in which they are housed to match the VAT free status of the pads and batteries.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government already maintains VAT reliefs to aid the purchase of Automated External Defibrillators (AEDs), including VAT relief on purchases made by local authorities and those made through voluntary contributions, where the AED is donated to eligible charities or the NHS. Otherwise, they attract the standard rate of VAT.
Any new VAT relief would come at a cost to the Exchequer and the Government has received over £50 billion worth of requests for relief from VAT since the EU referendum.
The Government however keeps all taxes under constant review.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what (a) financial and (b) tax incentives he has put in place to enable the conversion of the 23 per cent of homes in Ynys Môn constituency which are heated by oil to the renewable liquid fuel HVO.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Biofuels such as liquid fuel hydrotreated vegetable oil (HVO) may play a role in future off-gas-grid decarbonisation. However, further evidence is needed to consider the extent of this. The Department for Business, Energy and Industrial Strategy will publish a new Biomass Strategy in 2022, which will review the amount of sustainable biomass the UK will have access to, including liquid biofuels, and how this could be best used across the economy to achieve our net zero target.
As part of the Net Zero Strategy, the Government announced the new £450 million Boiler Upgrade Scheme to support the uptake of heat pumps
The Government keeps all taxes under review, and any changes are made in the round at fiscal events.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to introduce a small wine producers duty relief for small vineyards in the UK similar to the small brewers relief.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government is considering the merits of extending small producer reliefs to other categories as part of its alcohol duty review. Further updates will be provided in our response to the alcohol duty review call for evidence in due course.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Coronavirus Job Retention Scheme until April 2022 for the travel industry; and what additional steps he is taking to provide ongoing support to the travel industry.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September is designed to strike the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring that incentives are in place to get people back to work as demand returns. This approach has worked; the OBR have estimated that without the short-term fiscal easing announced in the Budget, and in particular the CJRS extension, unemployment would have been about 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.
The Government recognises the particular challenges that the travel industry has faced as a result of COVID-19. In England travel agents have recently benefited from Restart Grants worth up to £6,000, and can continue to benefit from the £2 billion of discretionary grant funding that has been made available to local authorities in England through the Additional Restrictions Grant (ARG). Furthermore, the travel sector is being supported with over £12 billion that has been made available through loan guarantees and support for exporters. In addition, airports continue to benefit from the renewed Airport and Ground Operations Support Scheme announced at Budget.
The Global Travel Taskforce (GTT) report sets out a clear framework for the Government’s objective of establishing a safe and sustainable return to international travel, which is key to enabling the sector’s recovery. It has been created following extensive engagement with the international travel and tourism industries, and changes following the recent checkpoint review of the GTT are a vital step in enabling the recovery of travel operators and those whose jobs rely on the travel industry.
The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. It continues to engage closely with sectors across the economy, including the travel industry, in order to understand their recovery horizons as the vaccine is rolled out and restrictions ease.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to introduce a Regulated Asset Based Model for large-scale green infrastructure projects.
Answered by Kemi Badenoch - President of the Board of Trade
In July 2019, the Government published a consultation on the viability of a Regulated Asset Base (RAB) model for financing new nuclear projects. The responses to this consultation were published in December 2020 alongside the Energy White Paper. At this time, the Secretary of State for Business, Energy and Industrial Strategy indicated that the RAB could help secure private investment in nuclear projects and cost consumers less in the long run. The Government is in negotiations with EDF in relation to the Sizewell C project and is continuing to explore a range of financing options, including the RAB model and the potential role of government finance during construction, provided there is clear value for money for consumers and taxpayers.
Furthermore, in August 2020, the Government published a response to the June 2019 consultation on Carbon Capture and Storage (CCUS) business models. CCUS is expected to decarbonise heavy industrial process and gas-fired power stations by capturing carbon dioxide emissions and transporting it via a network of pipelines to underwater stores. Government concluded that a RAB model would likely be the most effective way to provide value for money for taxpayers whilst also providing investors with confidence over the reliability and sustainability of a revenue stream. Government published further updates to the model in February, May and August 2021.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason nuclear energy projects are excluded from the new green savings bonds; and how his Department plans to attract private investment to support point 3 of the 10 point plan for a Green Industrial Revolution.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government recognises that reaching net zero emissions by 2050 will require power to be generated from low carbon sources. As set out in the Government’s Energy White Paper last autumn, nuclear power will play an important role in achieving net zero.
Some energy sources have been excluded from the UK Government Green Financing Framework, including nuclear energy. This is in line with current international market standards for sovereign green bonds, it does not represent an assessment of what the Government considers ‘green’ or affect an expenditure’s eligibility for traditional financing instruments. We will review the framework on a regular basis with the aim of adhering to best practices in the market.
In December, the Government published responses to the consultation on the proposed regulated asset base (RAB) funding model for nuclear projects, which involves an economic regulator granting a licence to a company to charge a regulated price to users of the infrastructure. The funding model could help secure private investment and cost consumers less in the long run. The Government is continuing to explore a range of financing options, including the RAB model and the potential role of government finance during construction, provided there is clear value for money for consumers and taxpayers.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will (a) take steps to ensure parity of funding for Freeports for England and Wales and (b) allocate £25 million for a Freeport in Wales to match the funding allocated to each of the eight Freeports in England.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Freeports will regenerate communities across the UK by attracting new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country. The UK Government remains committed to establishing at least one Freeport in Wales and I’d welcome the support of the Welsh Government to ensure Freeports are introduced in Wales as soon as possible.
The Welsh Government is due to receive Barnett in the usual way and it should be for the Welsh Government to decide how much seed funding to provide to a Freeport in Wales. It is also important to recognise that the seed funding is only one part of the offer available to ports and businesses. There are a variety of benefits from Freeports, including on tax, customs, planning and innovation, many of these which will be delivered by the UK Government.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of designating Anglesey a Freeport on the ability to (a) resolve the issue of reduced trade flows in the central corridor and (b) use the central corridor to facilitate the implementation of the Northern Ireland Protocol.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
Freeports will be national hubs for international trade, innovation and commerce, regenerating communities across the UK by attracting new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.
We want to ensure that the whole of the UK can benefit, which is why we remain committed to establishing a Freeport in Wales as soon as possible.
Any Freeport in Wales will be allocated by a fair and open process. The government will not be analysing the merits of any specific locations in advance of that.
We have reiterated our commitment to ensure Freeports policy upholds our obligations under the Northern Ireland Protocol.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of extending (a) the reduction of VAT to 5 per cent for hospitality businesses beyond March 2021 and (b) business rates relief for financial year 2021-22 for hospitality businesses.
Answered by Jesse Norman
The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.
In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.
The Government has also provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties due to the direct adverse effects of COVID-19, worth over £10 billion, and has frozen the business rates multiplier for all businesses for 2021-22.
The Government keeps all taxes under review, and any future decisions will be made at Budget.
Asked by: Virginia Crosbie (Conservative - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support he plans to make available to people who are carers for a disabled partner and who have been denied access to the Coronavirus Job Retention Scheme by their employers.
Answered by Jesse Norman
The Government recognises and values the vital contribution made by carers in supporting some of the most vulnerable in society.
Carers who are not put on furlough by their employer could be eligible for a number of benefits. Unpaid carers may be able to apply for Carer’s Allowance if they meet the qualifying conditions, such as providing 35 hours of care a week. In order to ensure that carers already in receipt of Carer’s Allowance do not inadvertently stop receiving it because of changes to patterns of care during COVID-19, the Government has allowed emotional support to count towards the 35 hours of care being provided by the carer. The Government has also relaxed the rules on breaks in care. These measures recognise that carers need extra flexibility in the way they provide care during the current emergency.
The Government continues to protect the value of benefits paid to carers while also spending record amounts in real terms. Since 2010, the rate of Carer’s Allowance has increased from £53.90 to £67.25 a week, meaning about an additional £700 a year for carers. Between 2020/21 and 2025/26, real terms expenditure on Carer’s Allowance is forecast to increase by nearly a third (about £1 billion). By 2025/26, the Government is forecast to spend just over £4 billion a year on Carer’s Allowance.
Furthermore, Carer’s Allowance is not the only benefit available to carers. Carers have access to the full range of social security benefits depending on their individual circumstances. Many of these benefits have additional elements to recognise the additional contribution and responsibilities associated with caring. For example, Universal Credit includes a carer element at the rate of £162.92 per monthly assessment period.
Carers will also benefit from the Government’s wider changes to the welfare system to support individuals during the pandemic, worth £7.4bn in 2020/21 according to Office for Budget Responsibility estimates. This includes carers on Universal Credit who will benefit from the temporary increase to the standard allowance by £20 per week.