HM Treasury

HM Treasury Ministers and officials regularly meet with other government departments and a range of stakeholders, which includes discussions around support for children.

The government has to date provided the NHS with over £32 billion to support its response to and recovery from COVID-19, which includes the provision of healthcare services to disabled children. This is part of the overall £97 billion support for health services since the start of the pandemic.

The government has also given over £6 billion in un-ringfenced funding directly to councils to support them with the immediate and longer-term impacts of COVID-19 spending pressures, including children’s services. At last year’s Spending Review, the government provided councils with access to over £1 billion of spending for social care through £300 million of new social care grant and the ability to introduce a 3% adult social care precept. This funding was additional to the £1 billion social care grant announced in 2019 which was maintained in line with the government's manifesto.

HM Treasury will continue to work with other government departments, including the Department for Health and Social Care, Department for Education and Department of Levelling Up, Housing and Communities, to ensure the Spending Review reflects the requirements of children’s health and care services in the longer term.

The Treasury recognises the vital role that non-banks, including Community Development Financial institutions (CDFIs), and challenger banks play in the provision of credit to SMEs. I would like to take the opportunity to reaffirm that the Government recognises the vital role that CDFIs play in the provision of credit to SMEs and is grateful for the way the sector has responded to the current crisis. It is worth noting the Government remains committed to promoting competition and widening the funding options available to UK businesses.

Whilst there are no plans at this time to mandate large bank investment through social lenders like CDFIs, I should be clear that all lenders accredited under the government-backed Recovery Loan Scheme can benefit from the transfer and assignment of the guarantee, which is something that alternative lenders requested to support their ability to access funding.

The Government is committed to ensuring consumers can access the insurance products that suit their needs and is in continual dialogue with the insurance industry on its response to the Covid-19 crisis.

The Government has taken the position that it would not intervene in the insurance market unless the inability to secure appropriate cover represented the last barrier for the sector to reopen. At various stages throughout this crisis, the government has launched successful insurance interventions.

Moving forward, HM Treasury is learning lessons about the impacts of Covid-19 on the insurance market and the availability of cover. This will be crucial when considering our approach for how we build greater economic resilience against certain risks in the future.

The Treasury is considering the merits of potential reforms to alcohol duties as part of its alcohol duty review. We are currently analysing responses provided by stakeholders to our call for evidence and will provide further updates in due course.

The Government is a strong supporter of the mutuals sector. Mutuals offer a different way of running a business, with their clear focus on their members needs and serving their local communities.

The Government routinely considers the effectiveness of legislation, including that for financial mutuals, and if any amendments are necessary. The Government is open to discussions about legislative reforms to support mutuals and other proposals to develop the sector. Treasury officials recently met with the Association of Financial Mutuals, which has put together a working group dedicated to exploring the impact of legislation and regulation on mutuals and friendly societies.

The Government is a strong supporter of the mutuals sector. Mutuals offer a different way of running a business, with their clear focus on their members needs and serving their local communities.

The Government routinely considers the effectiveness of legislation, including that for financial mutuals, and if any amendments are necessary. The Government is open to discussions about legislative reforms to support mutuals and other proposals to develop the sector. Treasury officials recently met with the Association of Financial Mutuals, which has put together a working group dedicated to exploring the impact of legislation and regulation on mutuals and friendly societies.

The final costing of the policy, as well as the impacts on individuals and businesses, are due to be set out in the upcoming Autumn Budget.

The final costing of the policy, as well as the impacts on individuals and businesses, are due to be set out in the upcoming Autumn Budget.

The Tax Information and Impact Note published in March 2021 sets out expected impacts of the April 2021 reform of the off-payroll working rules: https://www.gov.uk/government/publications/off-payroll-working-rules-from-april-2021/off-payroll-working-rules-from-april-2021.

The Government committed to commission independent research into the short-term impacts of the reform by October 2021 during the debate on the Finance Bill 2020. That research has now been commissioned, and the findings will be published once complete.

The information is not held in the form requested. HM Revenue and Customs (HMRC) does hold information on claimants of statutory maternity pay and statutory paternity pay, but this is not limited to new claims. Quarterly counts of claims would include claimants in each quarter in which they received the statutory payment. HMRC does not hold any information on payments of Maternity Allowance.

The Department for Work and Pensions publishes statistics about benefits, including average caseloads for Statutory Maternity Pay and Maternity Allowance:

https://www.gov.uk/government/collections/benefit-expenditure-tables

The Financial Ombudsman Service is an independent body set up to provide arbitration in disputes between customers and financial services firms. Following a consumer's acceptance of an ombudsman's final decision, the decision becomes binding on the firm.

The Financial Conduct Authority’s (FCA) rules require businesses to co-operate with the ombudsman – this includes complying with any decision that the ombudsman may make.

The Government continues to work closely with the FCA to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role.

Under the Government’s Recovery Loan Scheme (RLS), eligible businesses can take out a loan and use part of this facility to refinance their existing loans. Businesses in this situation should speak to lenders about their financing options. Businesses can use any of the accredited RLS lenders to refinance, and not just the lender they have the existing loan with. More information regarding accredited lenders under RLS is available on the British Business Bank’s website.

The Scheme of Arrangement and Member Vote independent expert is Oliver Gillespie from Milliman. The Part VII independent expert is Simon Grout from FTI Consulting. The independent experts are appointed by LV= (and in the case of the Part VII independent experts approved by the PRA, in consultation with the FCA) and their review of the proposed transaction is not only for the regulators but also for the courts and the members and policyholders of LV=. They are required to perform their role in line with regulatory requirements for independent experts.

The approval of the sale of LV= to Bain Capital, including consideration of the independent experts’ reports, is a matter for the members of LV=, as well as the financial services regulators and the courts, both of whom are independent of Government. It is therefore not appropriate for the Government to comment on the substance of an ongoing process.

The Term Funding Scheme (TFS) is a monetary policy tool of the independent Monetary Policy Committee (MPC) of the Bank of England. Therefore, it is not appropriate for the Government to comment on its conduct or effectiveness.

The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and essential for the effective delivery of monetary policy.

We will continue to work with non-bank lenders to support their participation in the new Recovery Loan scheme following the closure of the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loan Scheme (BBLS).

The Government recognises the continued importance of access to over-the-counter financial services. However, HM Treasury does not make direct assessments of banks’ or building societies’ branch networks.

Decisions on opening and closing branches are a commercial issue for banks and building societies, but firms are expected to engage closely with the Financial Conduct Authority to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements.

Alternative options for access include the Post Office. The Post Office Banking Framework allows 95% of business and 99% of personal banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.

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.

The Government recently consulted on aviation tax reform. As part of the consultation, the Government outlined its initial view that the effective rate of Air Passenger Duty (APD) on domestic flights should be reduced in order to support Union and regional connectivity and that the number of international distance bands should be increased in order to align APD more closely with our environmental objectives.

The consultation sought evidence on the potential impacts of these proposals, including on regional air routes, and closed on 15 June. The Government will update on next steps in due course.

As of 6 October 2021, 5,352 businesses have been offered a grant by the SME Brexit Support Fund.

A regional breakdown of the figures shows that businesses in England have been offered £7,289,018, in Scotland £476,539, in Wales £230,159 and in Northern Ireland £434,234.

In recognition of the fact that families should not have to bear all the VAT costs they incur to meet their energy needs, the Government already maintains a reduced rate of 5 per cent VAT on the supply of domestic energy, at a cost of £5 billion per year to the public finances.

Going further would impose additional pressure on the public finances and that cost would have to be balanced by increased taxes elsewhere, or by reductions in Government spending.

The Government keeps all taxes under review.

The Government has provided generous support to the self-employed during the COVID-19 pandemic through the Self-Employment Income Support Scheme (SEISS). The SEISS has helped nearly 3 million self-employed individuals with claims totalling over £27 billion.

Customers can ask HMRC to review their SEISS claim. However, HMRC have limited discretion in operating the SEISS and this discretion can only be used in exceptional circumstances. Such circumstances could include situations where HMRC have made an error that has affected an individual’s eligibility for, or amount of, a SEISS grant.

There is no legal right of appeal against decisions made in relation to the SEISS, and there is also no legal provision for ‘reasonable excuse’ within the legal framework for the SEISS.

The fifth and final SEISS grant closed on 30^th September 2021.

The Government published a Call for Evidence on 21 July 2020, as part of its Fundamental Review of Business Rates, to gather views from stakeholders on all elements of the Business Rates system and alternatives, including an Online Sales Tax.

Officials engaged with a broad range of stakeholders including online retailers as part of that process.

The Government provided a summary of responses to the Call for Evidence in March 2021. The review will conclude later this year.

HMT applies Civil Service central policy in relation to working from other countries.

All HMT staff are contracted to attend offices on a regular basis and there are no current plans to investigate the possibility of employing staff who live overseas.

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 Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September 2021. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.

This relief will cost over £7 billion and, while the Government keeps all taxes under review, there are no plans to extend the 12.5% reduced rate of VAT. Applying this relief for a longer period would come at a very significant further cost, with any reduction in tax paid resulting in a reduction in the money available to support important public services, including the NHS and policing.

The UK Infrastructure Bank (UKIB) formally launched on 17^th June 2020. The UKIB will publish details of its headcount in the usual way in their first set of Annual Reports & Accounts, due to be published next year.

The government is committed to reducing waste going to landfill. The Resources and Waste Strategy 2018 set out commitments to eliminate all avoidable waste to landfill by 2050 and to reduce the amount of municipal waste landfilled to 10% of total municipal waste by 2035.

Landfill Tax provides an incentive for waste to be diverted away from landfill and has contributed to a reduction in local authority waste sent to landfill in England of 90% since 2000.

The government is also introducing a world leading tax on plastic packaging from April 2022. The tax will encourage the use of recycled plastic instead of new plastic within packaging. It will create greater demand for recycled plastic, and in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.

While the government has no immediate plans to introduce further tax incentives for waste management, the government will review aspects of the Landfill Tax in England and Northern Ireland in due course, as announced in spring 2021. This will ensure the tax continues to support the government’s ambitious environmental objectives.

The UK Infrastructure Bank (UKIB) launched in June and is open for business. The UKIB is actively engaging with the private sector and local authorities and is in live conversations about a number of projects. UKIB has taken over management of the UK Guarantee Scheme, consisting of 9 guarantees totalling £1.8 billion of Treasury-backed infrastructure bonds and loans, supporting over £4 billion worth of investment. The Bank also operates the Charging Infrastructure Investment Fund and the Digital Infrastructure Investment Fund – previously managed by the Infrastructure and Projects Authority.

The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.

HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.

The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.

HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.

The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.

HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.

As part of the Heavily Indebted Poor Countries (HIPC) Initiative, the UK will provide debt cancellation on Sudan’s bilateral debt owed to the UK.

Sudan owes the UK a total of £861m (as of August 2020).

HM Treasury does not hold any of the debt owed to the UK by Sudan and the debt relief for Sudan will not appear in HM Treasury’s annual report and accounts.

The UK reports all ODA eligible spend in line with international rules set by the OECD.

As part of the Heavily Indebted Poor Countries (HIPC) Initiative, the UK will provide debt cancellation on Sudan’s bilateral debt owed to the UK.

Sudan owes the UK a total of £861m (as of August 2020).

HM Treasury does not hold any of the debt owed to the UK by Sudan and the debt relief for Sudan will not appear in HM Treasury’s annual report and accounts.

The UK reports all ODA eligible spend in line with international rules set by the OECD.

As part of the Heavily Indebted Poor Countries (HIPC) Initiative, the UK will provide debt cancellation on Sudan’s bilateral debt owed to the UK.

Sudan owes the UK a total of £861m (as of August 2020).

HM Treasury does not hold any of the debt owed to the UK by Sudan and the debt relief for Sudan will not appear in HM Treasury’s annual report and accounts.

The UK reports all ODA eligible spend in line with international rules set by the OECD.

The Government recognises the important contribution the spirits sector makes to the economy. This is why we announced a freeze on spirit duties at March Budget 2021, making the price of a typical bottle of Scotch whisky 30p lower than it would have been had prices risen with inflation. When added to the cuts and freezes made in the last five years, this means that the price of a typical bottle of Scotch Whisky in 2021 will be £2.15 lower than it otherwise would have been since ending the spirits escalator in 2014.

To further support Scotch, the Chancellor has announced £1 million of additional funding for the promotion of Scottish food and drink products overseas, and £10 million of research and development funding to help the distilling sector transition to net zero emissions.

More broadly, the Government keeps all taxes under review. We are continuing to monitor emerging public health data and will provide further updates on our alcohol duty review in due course.

The Government recognises the important contribution the spirits sector makes to the economy. This is why we announced a freeze on spirit duties at March Budget 2021, making the price of a typical bottle of Scotch whisky 30p lower than it would have been had prices risen with inflation. When added to the cuts and freezes made in the last five years, this means that the price of a typical bottle of Scotch Whisky in 2021 will be £2.15 lower than it otherwise would have been since ending the spirits escalator in 2014.

To further support Scotch, the Chancellor has announced £1 million of additional funding for the promotion of Scottish food and drink products overseas, and £10 million of research and development funding to help the distilling sector transition to net zero emissions.

More broadly, the Government keeps all taxes under review. We are continuing to monitor emerging public health data and will provide further updates on our alcohol duty review in due course.

The Government recognises the important contribution the spirits sector makes to the economy. This is why we announced a freeze on spirit duties at March Budget 2021, making the price of a typical bottle of Scotch whisky 30p lower than it would have been had prices risen with inflation. When added to the cuts and freezes made in the last five years, this means that the price of a typical bottle of Scotch Whisky in 2021 will be £2.15 lower than it otherwise would have been since ending the spirits escalator in 2014.

To further support Scotch, the Chancellor has announced £1 million of additional funding for the promotion of Scottish food and drink products overseas, and £10 million of research and development funding to help the distilling sector transition to net zero emissions.

More broadly, the Government keeps all taxes under review. We are continuing to monitor emerging public health data and will provide further updates on our alcohol duty review in due course.

The Payment Systems Regulator (PSR) was established in 2015, with statutory objectives to promote competition, innovation, and to ensure that payment systems are operated in a way that considers the interests of all the businesses and consumers that use them.

The PSR is currently carrying out a market review into card acquiring services to examine how effectively competition is working in the provision of these services. This includes an assessment of the fees that small and medium-sized businesses pay, including card scheme and interchange fees, and the quality of service they receive. The Government looks forward to the final PSR report and recommendations later this year.

Furthermore, the Government has legislated to ensure the interchange fees businesses pay remain capped for all UK domestic card transactions where both the card issuer and acquirer are located in the UK. This was facilitated through the Interchange Fee (Amendment) (EU Exit) Regulations 2019 made under the European Union (Withdrawal) Act 2018. UK interchange fee caps are therefore at the same levels as before the end of the Transition Period.

It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.

The Government is working with industry to close down the vulnerabilities that fraudsters exploit and ensure members of the public have the information they need to spot a scam and stand up to fraudsters. This is a shared endeavour between Government, law enforcement and the private sector. It is vital we ensure that disabled and vulnerable customers are included in this effort, but there are no additional requirements on a bank to check for irregularities or fraudulent activity if a customer is disabled or vulnerable.

UK banks’ and building societies’ treatment of their customers is governed by the Financial Conduct Authority (FCA) in its Principles for Businesses. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers.

The FCA’s Guidance for firms on the Fair Treatment of Vulnerable Customers also requires that firms should understand what harms their customers are likely to be vulnerable to and ensure that customers in vulnerable circumstances receive the same fair treatment and outcomes as other customers.

If a firm has doubts about a consumer’s ability to understand a product or service, suspects they do not have capacity to make decisions or that they are acting as a result of fraud or coercion, the firm should assess whether it should allow the consumer to proceed. It may be appropriate for firms to contact, or act on the instructions of, a family member, friend or other third party.

In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. This may include allowing for a carer or deputy to act for the disabled person.

The Term Funding Scheme (TFS) is a monetary policy tool of the independent Monetary Policy Committee (MPC) of the Bank of England. Therefore, it is not appropriate for the Government to comment on its conduct or effectiveness.

The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and essential for the effective delivery of monetary policy.

We will continue to work with non-bank lenders to support their participation in the new Recovery Loan scheme following the closure of the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loan Scheme (BBLS).

The government is committed to maintaining the UK’s position a world-leading destination for fintech.

In line with this ambition, the Government is taking forward key recommendations of the independent Kalifa Review of UK Fintech as part of ensuring the UK remains at the global cutting edge of technology and innovation in financial services.

Government funding for future years will be confirmed as part of the Spending Review which will be announced on 27th October.

Electricity supplied at electric vehicle charging points in public places is subject to the standard rate of VAT (twenty per cent). In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (five per cent).

Expanding the relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019/20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.

Electricity supplied at electric vehicle charging points in public places is subject to the standard rate of VAT (twenty per cent). In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (five per cent).

Expanding the relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019/20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.

Electricity supplied at electric vehicle charging points in public places is subject to the standard rate of VAT (twenty per cent). In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (five per cent).

Expanding the relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019/20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.

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 Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.

This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of 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.

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 Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.

This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of 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.

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 Budget 2021, the Government has extended the temporary reduced rate of VAT of 5% for the tourism and hospitality sector. This relief ended on 30 September. On 1 October 2021, a new reduced rate of 12.5% was introduced to help ease affected businesses back to the standard rate. This new rate will end on 31 March 2022.

This relief will cost over £7 billion and, while all taxes are kept under review, there are no plans to extend the 12.5% reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the cash flow and viability of 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.