Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of providing further business rate reliefs to support (a) small businesses, (b) other businesses, (c) high streets and town centres and (d) local authorities.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
At Autumn Statement 2022, the Government announced a package of changes and tax cuts worth £13.6 billion over the next five years, including:
Decisions on future business rates support will be made in due course.
Asked by: Damien Moore (Conservative - Southport)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department is taking to minimise the loss of economic activity on high streets after the closure of Wilko.
Answered by Jacob Young - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government recognises the pressures faced by high street businesses, announcing in the Autumn Statement 2022 a package of changes to business rates worth £13.6 billion over the next 5 years in lower bills. This is in addition to the Energy Bills Discount Scheme.
The Department for Business and Trade are working with the Retail Sector Council on the strategic issues facing the sector, including costs to businesses, the importance of place and the high street, and consumer protections. The process of administration has yet to conclude, and we understand that consideration is being given to interest from potential purchasers for some of the Wilko stores. Physical retail remains a key part of the high street and a thriving high street will need a strong retail offering. Government is clear that we want all types of retail to thrive now and in the future.
We continue to work with local leaders to support town centre regeneration, including in Southport, which was awarded £37.5 million through our Town’s Fund and a further £20 million to support the repurposing of the Strand Shopping Centre and the wider transformation of Bootle Town Centre.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what discussions she has had with Wilko on their announcement of bankruptcy and the potential closure of stores.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
It is not appropriate for Government to involve itself in the running of an independent business. Nor is it appropriate to be involved in the independent exercise of the administration of a business.
Officials at the Insolvency Service’s Redundancy Payments Service have been working with the Administrators of Wilko to ensure that statutory redundancy payments can be made to the former employees as soon as possible. Retail officials have had regular engagement with the administrators, PwC, the GMB Union, as well as DWP, the Cities and Local Growth Unit and the Insolvency Service.
I remain concerned for the many employees who now face an uncertain future. We will continue to provide support to those employees directly impacted by the outcome.
Asked by: Tulip Siddiq (Labour - Hampstead and Kilburn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of when future shared banking hubs will be rolled-out; and whether his Department is taking steps to accelerate the rollout of shared banking hubs.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Banking Hubs are a commercial initiative provided by participating retail banks and building societies in partnership with the Post Office to support access to cash and banking services in communities.
Banking Hubs offer basic counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank or building society for more complicated matters that require specialist knowledge or privacy.
Decisions regarding the deployment of Banking Hubs and the range of services provided are taken on a commercial basis by the parties involved. To date, industry has committed to deliver Banking Hubs in 80 locations. Further information on Banking Hubs is available at: https://www.cashaccess.co.uk/
The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash access services. The FCA is currently developing its approach and will consult in due course.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what assessment they have undertaken of the future implementation of the Tobacco and Related Products (Amendment) (Northern Ireland) Regulations 2023.
Answered by Lord Markham - Parliamentary Under-Secretary (Department of Health and Social Care)
A full Impact Assessment has not been prepared for this instrument because the amounts involved on business fall below the threshold for producing one. An internal assessment was made however by The Office for Health Improvements and Disparities (OHID) to help understand the impact.
Our internal assessment enabled us to conclude that the use of heated tobacco products is low at around 0.5% of adults in Northern Ireland. They are produced and manufactured outside the United Kingdom by the tobacco industry. The characterising flavour ban will limit the products that can be produced and supply on the Northern Ireland market which may limit the volume of sales.
Our assessment also judged that there will be no significant impact on the public sector. Each district council in Northern Ireland will enforce the new requirements. These new requirements are not expected to be a significant burden on district councils, given the low use of heated tobacco products in Northern Ireland.
OHID, working with the Department of Health in Northern Ireland, has communicated the proposed changes to the tobacco industry, the Northern Ireland retail representatives, and the relevant enforcement agencies.
Asked by: Jane Hunt (Conservative - Loughborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the (a) feasibility and (b) potential merits of extending the retail, hospitality and leisure business rates relief scheme beyond 31 March 2024 for businesses in business improvement districts.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The 2023-2024 Retail, Hospitality and Leisure (RHL) Business Rates Relief scheme provides eligible, occupied, retail, hospitality and leisure properties with a 75 per cent relief, up to a cash cap limit of £110,000 per business. This was an expansion from the 50 per cent rate in 2022-2023. Currently, around 230,000 properties are eligible for this relief, representing a tax cut worth over £2 billion.
Businesses may also benefit from other business rates measures, including the multiplier freeze, and the Supporting Small Business scheme, which caps bill increases at £600 per year for businesses losing some or all of their eligibility for Small Business or Rural Rate Relief due to the recent revaluation.
Any future announcements regarding business rates relief will be made at a fiscal event.
Asked by: Lord Dodds of Duncairn (Democratic Unionist Party - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government, further to the publication of the document ‘The Windsor Framework: The Green Lane’ on 9 June, whether the date at which traders experience a benefit from the green lane in terms of simplified customs, and sanitary or phytosanitary forms, is being put back by 12 months to 1 October 2024.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
The Windsor Framework is the best deal for Northern Ireland, restoring the smooth flow of goods, protecting Northern Ireland's place in the Union and delivering a robust framework for solving future issues.
The implementation of the Framework is proceeding to the timeline set out when the agreement was announced.
Some arrangements are already in force, including the Duty Reimbursement Scheme for EU duty paid on "at risk" goods which have been sold or used outside of the EU.
From 30 September 2023, a new UK Internal Market Scheme will expand the range of businesses able to benefit from the new arrangements provided to protect internal UK movements, including the removal of EU tariffs. In tandem, from October the new sanitary and phytosanitary "green lane" arrangements will take effect: including a new Retail Movement Scheme for agrifood retail products; new rules to allow plants to move smoothly in to Northern Ireland; and new arrangements to enable seed potatoes to move once again from Great Britain to Northern Ireland.
From September 2024, the full "green lane" will take effect for the movement of all goods between Great Britain and Northern Ireland, expanding the benefits of the UK Internal Market Scheme to end unnecessary bureaucracy. This will ensure that goods will no longer move on the basis of international customs requirements, with a new system based on commercial information.
Asked by: Henry Smith (Conservative - Crawley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the fiscal impact on economy of the removal of tax-free shopping for overseas visitors in summer 2023.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government engaged with varied stakeholders and produced analysis on the cost of the VAT Retail Export Scheme (RES) before withdrawing it. Our analysis, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of £2 billion each year.
Furthermore, the OBR’s assessment of the previous VAT RES shopping scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Although there are no plans to re-introduce VAT RES, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the potential economic impact of the return of tax-free shopping for tourists.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government engaged with varied stakeholders and produced analysis on the cost of the VAT Retail Export Scheme (RES) before withdrawing it. Our analysis, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of £2 billion each year.
Furthermore, the Office for Budget Responsibility’s assessment of the previous VAT RES shopping scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Although there are no plans to re-introduce VAT RES, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what plans they have, if any, to protect the labour workforce as more retail stores transition to online sales and services.
Answered by Earl of Minto - Minister of State (Ministry of Defence)
The Government recognises the opportunities bricks and mortar businesses can create by developing online services and supports the workforce by offering extensive skills and employment support for individuals who might be affected. The Retail Sector Council has identified skills and employment as two of their priority areas of work and government continues to work closely with the Council to consider the future needs of the sector.
Figures from the Office of National Statistics[1] show that the proportion of total retail sales made online peaked at 37.8% in January 2021, before falling back. The proportion of sales made online has remained broadly consistent at around 26% since February 2023.
[1] ONS, Internet sales as a percentage of total retail sales (ratio) (%), June 2023.