“Our plans deliver the highest sustained levels of government investment in almost half a century.” @RishiSunak sets out how the #SpendingReview will invest billions in the UK’s recovery: supporting jobs, spreading opportunity and levelling-up. Read more: https://t.co/4wB2SFpFNY https://t.co/CreHnAZvCf
With new funding that takes the budget for covid-19 vaccines to over £6bn, Chancellor @RishiSunak visited the National Institute of Health Research to see how #SpendingReview commitments will help tackle coronavirus. See more pictures on our Instagram page https://t.co/WDsMGS3CRF https://t.co/vWljHk7aXM
Questioner: Drew Hendry
Question
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of backdating Coronavirus Job Retention Scheme support payments for workers who continued to work part-time at the start of covid-19 outbreak and were ineligible for the original operation of that scheme but who are now eligible for that scheme through flexible furlough.
Answer (Jesse Norman)
The Coronavirus Job Retention Scheme (CJRS) has been delivered at an unprecedented pace and is protecting thousands of jobs up and down the UK, with 1.2 million employers applying to help to pay the wages of 9.6 million furloughed jobs.
In light of recent developments in the path of the virus, the CJRS has been extended until the end of March 2021 for all parts of the UK. People employed and on payroll on 30 October will be eligible, and neither the employer nor the employee needs to have previously claimed or have been claimed for under the CJRS to make a claim under the extended CJRS, if other eligibility criteria are met. Furthermore, businesses will have flexibility to use the scheme for employees for any amount of time and shift pattern, including furloughing them part-time. By having the eligibility cut-off date the day before the announcement, this addresses the risk of abuse while also ensuring that there is no gap in support.
The scheme is designed to help those who otherwise would have been made unemployed and to provide support to businesses as quickly as possible. Allowing backdated payments to people working part-time since March is not consistent with the objectives of the scheme, would require more process and substantially increase the risk of fraud.
Questioner: Sarah Olney
Question
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the decision to abolish VAT-free shopping on the UK's (a) tourism and (b) hospitality industries.
Answer (Kemi Badenoch)
Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:
- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.
- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.
- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to EU residents and will be withdrawn for all passengers.
- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.
The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government is also continuing to meet and discuss with stakeholders following the announcement of these policies.
The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.
HMRC estimate that VAT RES refunds cost around £0.5 billion in VAT in 2019 for around 1.2 million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9 billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4 billion per annum.
The independent Office for Budget Responsibility (OBR) has today set out their assessment of the precise fiscal impact of the withdrawal of the scheme. Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the change will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of COVID-19. This includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year – far away from the hundreds of thousands or millions of visitors that others have claimed. Overall, the behaviour response with this higher elasticity is expected to reduce the tax revenue by a quarter.
Questioner: Olivia Blake
Question
To ask the Chancellor of the Exchequer, if he will include brewers in the retail, hospitality and leisure business rates relief programme; and if he will reopen the Retail, Hospitality and Leisure Grant Fund and include brewers.
Answer (Jesse Norman)
The Government has provided Local Authorities with £1.1 billion across England via the Additional Restrictions Grant, for businesses which are not legally closed, but which are nonetheless severely affected by local or national restrictions.
Local Authorities have discretion on how to use this funding to support businesses in their areas, but the Government encourages them to set up discretionary grant schemes to support businesses such as brewers which can remain open, but which are nonetheless severely affected by the enhanced COVID-19 restrictions.
There are currently no plans to change the scope of existing business rates relief. HM Treasury is conducting a fundamental review of the business rates system and will consider any future reliefs through that process.
Nov. 25 2020
Main Page: Spending review for 'whole UK' will deliver for Scotland£14.6bn of funding for Research & Development to forge the UK's future as a global leader in science 🧪 and technology 💻 #SpendingReview https://t.co/r2w7cwCyFA
Nov. 25 2020
Main Page: Chancellor's Spending Review will deliver Jobs and Infrastructure for Northern Ireland🍃 £12bn to help the UK reach Net Zero by 2050. 🌲 Including £92m to help plant 30,000 hectares of trees, capturing carbon & boosting biodiversity. 👷♀️ This will create and support up to 250,000 green jobs. #SpendingReview https://t.co/tpZrvsriw7
Delivering the #SpendingReview in @UKParliament today, Chancellor @RishiSunak set out how the government will prioritise funding to respond to coronavirus, create jobs, deliver the people’s priorities & invest in the UK’s recovery Read the full speech here https://t.co/6chPHJRPsH https://t.co/5KfMcYpWJm
For full details on today's #SpendingReview, and how it will help fight coronavirus, create jobs, deliver the peoples’ priorities and invest in the UK’s recovery, visit: https://t.co/4wB2SFpFNY https://t.co/5TXRCITuOL
Nov. 25 2020
Main Page: The Balance Sheet Review Report: Improving public sector balance sheet managementNov. 25 2020
Main Page: The Balance Sheet Review Report: Improving public sector balance sheet managementNov. 25 2020
Main Page: The Balance Sheet Review Report: Improving public sector balance sheet managementNov. 25 2020
Main Page: The Balance Sheet Review Report: Improving public sector balance sheet managementNov. 25 2020
Main Page: The Balance Sheet Review Report: Improving public sector balance sheet managementNov. 25 2020
Main Page: Final Report of the 2020 Green Book ReviewNov. 25 2020
Main Page: Final Report of the 2020 Green Book ReviewNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Spending Review 2020 documentsNov. 25 2020
Main Page: Update to 2020-21 government financing remit