Asked by: Baroness Kennedy of Cradley (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is their latest estimate of the amount of income tax lost to fraud each year.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
HMRC does not publish a stand-alone estimate of the Income tax gap arising from fraud.
However, ‘Measuring tax gaps 2023 edition’, published in June 2023, shows a reduction in the Income Tax, National Insurance contributions and Capital Gains Tax gap as a percentage of the theoretical tax liability from 4.5% in 2005-2006 to 3.0% in 2021-2022. The publication also provides illustrative estimates for fraud that are included in the criminal attacks and evasion components, plus a proportion of hidden economy and non-payment.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of when the online system for (a) checking the completeness of National Insurance records and (b) paying top ups will be launched.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
After a period of internal testing, we launched the service in private beta on 22nd April 24 to a small number of users. Over the period 22nd April 24 until the 29th April 24 we have gradually increased number of users in private beta. We made the service available to everyone in a public beta on 29th April 2024.
Asked by: Lord Jackson of Peterborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have with the Competition and Markets Authority on the recent increases in car insurance premiums and access to car insurance for motorists on lower incomes.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. Alongside the Competition and Markets Authority, the FCA can enforce against breaches of competition law for the provision of financial services.
The FCA also requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: John Healey (Labour - Wentworth and Dearne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to allocate at least £3 billion for military support to Ukraine in each year between 2024 and 2030.
Answered by Laura Trott - Chief Secretary to the Treasury
The Government remains committed to supporting Ukraine to defend itself in response to Putin’s illegal invasion. This year we are providing an additional £500 million to Ukraine, on top of the £2.5 billion we have already announced. Our fully funded increase in defence spending enables us to commit to providing support to Ukraine at the current level for as long as required.Asked by: John Healey (Labour - Wentworth and Dearne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Prime Minister’s speech in Warsaw on 23 April 2024, whether the commitment to spend 2.5% of gross domestic product on defence by 2030 will be require additional funding streams other than through reductions to (a) the civil service and (b) research and development budgets.
Answered by Laura Trott - Chief Secretary to the Treasury
We have made a commitment to steadily increase defence spending, reaching 2.5% of GDP in 2030. We have also set out how we are fully funding this increase in defence spending.
Asked by: John Healey (Labour - Wentworth and Dearne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Prime Minister’s speech in Warsaw on 23 April 2024, whether his Department has (a) conducted an assessment of costings and (b) developed proposals for how to fund the commitment to spend 2.5% of gross domestic product on defence by 2030.
Answered by Laura Trott - Chief Secretary to the Treasury
We have made a commitment to steadily increase defence spending, reaching 2.5% of GDP in 2030. We have also set out how we are fully funding this increase in defence spending.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of deferring eligibility for Agricultural Property Relief for all environmental land management schemes on the estates of (a) landowners and (b) farmers who will die prior to 6 April 2025.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Spring Budget 2024 announced that the government will introduce legislation to extend the existing scope of agricultural property relief from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, Devolved Administrations, public bodies, local authorities, or approved responsible bodies.
The date of implementation is consistent with the normal tax-policy making process and with previous changes to the inheritance tax system.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of Basis Period Reform on the availability of accounting resources for (a) sole traders and (b) partnerships.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Basis period reform is an important simplification to the tax system. The government introduced this reform in Finance Act 2022 to create a simpler, fairer, and more transparent set of rules for the allocation of self-employment and partnership income to tax years.
The reform simplifies tax computations for businesses, making it easier to complete self assessment tax returns and reducing administrative burdens. Basis period reform has no effect on the availability of accounting resources for the self-employed or partnerships.
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 impact of the delay of the Overseas Funds Regime on the UK's attractiveness to overseas asset managers; and what steps they are taking to mitigate any negative effects.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The UK’s world-leading asset management sector is the second largest by assets under management, 48% of which are managed on behalf of overseas investors.
The Overseas Funds Regime was legislated for in the Financial Services Act 2021, to create a more streamlined process for overseas investment funds to be sold to UK investors.
On 30th January, the Economic Secretary to the Treasury announced that the Government had found the states in the European Economic Area, including the EU member states, equivalent under the Overseas Funds Regime, in respect of certain retail funds. This followed a detailed assessment of the states’ regulatory regimes.
HM Treasury and the Financial Conduct Authority (FCA) jointly published a roadmap to equivalence on the 1st of May setting out the key milestones to implement this decision.
Alongside this, the FCA published detailed guidance setting out that funds in scope of the OFR – but without temporary marketing access – will be able to apply to the FCA for recognition from September 2024. The FCA intends to invite funds with temporary marketing access to apply for recognition in tranches between October 2024 and September 2026.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to address the impact of rising inflation on household budgets while stimulating consumer spending, given the stagnation of retail sales between February and March.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is fully committed to supporting the Bank get inflation back down to the 2% target, including by keeping borrowing under control. Inflation has also come down significantly, to less than half its 2022 peak.
Over the past two years, the government has provided support to help households with the cost of living totalling £96 billion – an average of £3400 per UK household. Further support announced by the government for 2024-25 includes extending the Household Support Fund, cutting National Insurance Contributions (NICs) and raising the National Living Wage (NLW).
ONS retail sales growth was flat in March, following growth of 0.1% in February. However, due to a significant rebound in January, retail sales increased by 1.9% on the quarter. This represents the strongest quarterly growth since Q2 2021.