Local Authorities: Budgets
Debate between Baroness Penn and Earl of Clancarty(7 months, 2 weeks ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn (Con)
My noble friend sets out the rationale for the decision that was taken, and the Government have made sure that, in the commission’s place, we have strong controls so that local government spending is done in the best possible way.
The Earl of Clancarty (CB)
My Lords, arts facilities will be among the first to go when local authorities have no money. The wonderful Lightbox gallery in Woking, not far from me, is now under threat, as indeed is funding elsewhere for symphony orchestras and much else. I repeat what others have asked: will the Government properly fund our local authorities, which have been underfunded for years, so that all our cultural and leisure amenities are allowed to survive and thrive?
Baroness Penn (Con)
My Lords, I repeat what I said about the recent spending review being the largest increase to core spending powers for local government in over a decade. Additionally, we have put significant support into the arts and culture sector through not only the culture recovery fund during the pandemic but, for example, support to swimming pools— they face high energy costs during the current period of inflation—in the last Autumn Statement. We continue to provide that specific support.
Tourist Spending: VAT
Debate between Baroness Penn and Earl of Clancarty(11 months, 1 week ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn (Con)
I absolutely agree with my noble friend that levels of government borrowing are high because of the impact of both the Covid pandemic and the war in Ukraine. One of the reasons that levels of debt are high is that we have provided strong support to sectors such as tourism during the difficult years of Covid, and we are also providing strong support to them to recover from the pandemic and build back visitor numbers.
The Earl of Clancarty (CB)
My Lords, the Minister should look at the Oxford Economics report from last year, which showed a net economic benefit from tax-free shopping. Does she not accept that this is about an ecology of tourism—not just high-end shopping but the hospitality trade, theatres, concert halls and more? The UK needs to clearly show that it is open for business, as other countries are capitalising on this failure.
Baroness Penn (Con)
My Lords, I would say to the noble Lord that the Government have looked very carefully at the Oxford Economics analysis, and we do appreciate that some of the costs would be offset by higher visitor numbers and their spending. However, the OBR’s and the Government’s previous analysis suggested that the offset was marginal and the policy still comes with significant fiscal costs. One of the key differences between the Government’s costings and those produced by Oxford Economics is the assumptions around additional visitor numbers, with the OBR estimating that VAT-free shopping could bring in 50,000 to 80,000 additional visitors and the industry commission report suggesting 1.6 million additional visitors.
Theatre Tax Relief
Debate between Baroness Penn and Earl of Clancarty(1 year, 1 month ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Penn (Con)
My Lords, the points that the noble Baroness makes are entirely those that we would want to consider in looking at the issue. She is absolutely right about the value and the costs when it comes to the production of these shows, which is why the tax relief is focused there. She is also right that they can bring huge economic benefit, including through exports, attracting visitors to the UK and productions going on the road. Those are the kinds of things that the DCMS and the Treasury will consider when looking at the tax relief.
The Earl of Clancarty (CB)
My Lords, there are concerns similar to those of the theatres in the visual arts sector concerning the museums and galleries exhibition tax relief. The Treasury and the noble Lord, Lord Parkinson, will be aware of this, having received the letter signed by many museums’ and galleries’ organisations which asks for that relief to be extended. It has been not just helpful, but vital to the sector, not only for the larger museums, but smaller galleries and emerging artists outside London. If the Government want to see this sector grow across the whole country, they should seriously consider maintaining this tax relief, and at the current level.
Baroness Penn (Con)
The noble Lord is right that the theatre tax relief is not the only cultural tax relief that we have. The Covid support that was put in place to extend the levels of that relief cover those areas as well. I know that my noble friend Lord Parkinson has been listening very carefully to the representations made by that sector and passing them on to the Treasury.
Covid-19: Financial Support Schemes
Debate between Baroness Penn and Earl of Clancarty
Baroness Penn (Con)
My Lords, we have given the British Business Bank additional resources to tackle the issue in bounce-back loans. As I said in response to an earlier question, part of the role of the new public sector fraud authority is to conduct post-event assurance, which will specifically look at Covid 19 spending and learn lessons. A few of the authority’s other functions will be across government, such as the provision of data analytics capability, and for those government departments that do not already have it, greater expertise in assessing fraud risk up front, learning lessons and enforcement for particular Government spending.
The Earl of Clancarty (CB)
My Lords, following on from the question from the noble Baroness, Lady Kramer, would the Minister not agree that the Covid-related government support has been entirely necessary, and I hope very much that the Government would not be dissuaded from rolling out such schemes if required in the future, and at the pace they did, because of concerns about fraud.
Baroness Penn (Con)
I agree with the noble Earl, and I recognise that, particularly with bounce-back loans and the CJRS, the speed at which the Government needed to act was one of the trade-offs with the checks that could be put in place. We will make sure that lessons are learned, to ensure that we got that balance correct, but one of the reasons we introduced the Bounce Back Loan Scheme and reduced the checks on it, was that original government support programmes that had greater levels of checks were not getting the money to people who needed it, and the scheme prevented the loss of businesses and livelihoods in our economy.
Covid-19: Gig Economy
Debate between Baroness Penn and Earl of Clancarty
Baroness Penn (Con)
My Lords, I believe that this is something that falls within the remit of the Small Business Commissioner, and the Government have looked at increasing the enforcement of those provisions.
The Earl of Clancarty (CB)
My Lords, a problem with the term “gig economy” is that, in practical terms, it incorporates a wide and varied group, many of whom have had vocational training and are self-employed by choice because of the nature of the work they do. Does the Minister acknowledge that there needs to be a sea change in the way the self-employed as a whole are regarded and that to support them through this crisis—and they need considerably more financial support—would be to protect an investment for the future?
Baroness Penn (Con)
My Lords, the Government acknowledge the important work that the self-employed do across this country, and I am sure the noble Earl will welcome today’s announcement that the support for the self-employed in the next two grants under the scheme will double from 20% to 40%, meaning that the maximum grant will rise from £1,875 to £3,750.
VAT Retail Export Scheme
Debate between Baroness Penn and Earl of Clancarty
Baroness Penn (Con)
My Lords, our understanding is that the benefit from the VAT RES flows almost entirely to two places: central London and Bicester Village. High streets across the country need our support during the pandemic. That is why we have the future high streets fund of £675 million, and the towns fund, supporting 100 towns with £3.6 billion of funding.
The Earl of Clancarty (CB)
My Lords, which business leaders and sector bodies support the decision to end the scheme?
Baroness Penn (Con)
My Lords, the Government conducted a public consultation on the future of the scheme in which we took into account the views of business leaders and those within the sector. We also did our own analysis and had to weigh up the costs of extending the scheme against its potential benefits.
Public Health Restrictions: Government Economic Support
Debate between Baroness Penn and Earl of Clancarty
Baroness Penn (Con)
My Lords, in international comparisons, the UK is around the average for these kinds of support schemes. There are some schemes, like those in Germany, in which support goes up over time, but there are others in which the support is reduced over time. As I said to the noble Lord, Lord Tunnicliffe, the support for those on low incomes and those with children will increase as universal credit goes up and as incomes go down, and so those on low incomes will receive more than the 67%.
The Earl of Clancarty (CB)
My Lords, it is easy to forget that the combination of nearly full support for the employed and the self-employed, and getting people to stay at home, was part of a suite of measures that was successful, in less than three months, in drastically reducing the number of cases and deaths, if what ultimately was lacking was test and trace. What research is there now on transmission of the virus during a working day? Will the Government consider that such national measures will be needed again if we are to beat the virus and avoid destitution for large numbers of people?
Baroness Penn (Con)
My Lords, a lot of work has gone into the Covid-secure guidelines for workplaces, to enable people to return to work in a Covid-secure way. The approach that the Government are taking is all around balance. National lockdown does not come without costs to people’s livelihoods and wider health costs. With the tiered approach we are trying to target measures more seriously in those areas with the highest transmission. We believe that this is the right approach in balancing the different interests that we must face.