Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent steps they have taken to help ensure value for money in public spending.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Spending Review 2021 placed a renewed emphasis on ensuring that every pound of taxpayers’ money is spent well and focused on the areas that make the most difference to people’s daily lives.
The government has set clear outcomes for what spending will buy; ensured that all decisions are informed by the best quality evidence; encouraged joint working between departments; and taken further action to drive out low value or inefficient spend.
Following the efficiency and savings review last year, Spending Review 2021 confirmed savings of 5% against day-to-day central departments budgets in 2024-25.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent assessment they have made of the impact of inflation on living standards.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
We understand that inflation, if higher than income growth, can reduce households’ real income, and that higher prices can increase the cost of living for people and households.
The government is working with international partners to tackle global supply chain disruption and providing support worth around £12 billion this financial year and next to help people with the cost of living. This includes cutting the Universal Credit taper rate to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing targeted support to help vulnerable households with their energy bills and other essentials.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent assessment they have made of the impact of their taxation policy on living standards.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Treasury analysis published alongside Autumn Budget 21 shows that tax changes announced by this government are progressive, with high-income households on average paying most as a share of income. The analysis also shows that the lowest income households will on average receive more than £4 in public spending for every £1 paid in tax.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what fiscal steps they will take to reduce the impact on households of the rise in the cost of living.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The government is providing support worth around £12 billion this financial year and next to help families with the cost of living. We are cutting the Universal Credit taper rate to make sure work pays, freezing alcohol and fuel duties to keep costs down, and providing support to help households with the costs of essentials through the £500m Household Support Fund.
In addition, the government’s Plan for Jobs is helping people into work and giving them the skills they need to progress – the best approach to managing the cost of living in the long term. The government is building on the success of the Plan for Jobs with a total of £6 billion for the three years from 2022-23 to 2024-25. This includes:
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of rising levels of debt in low income countries; and what steps they are taking to help low income countries manage their foreign debt.
Answered by Lord Agnew of Oulton
The UK recognises the significant debt vulnerabilities faced by many low-income countries, exacerbated by the Covid-19 pandemic. That is why support for low-income countries, including on debt, has been a key priority for the UK’s G7 Presidency this year and something we have worked closely on with our international partners in the G20.
To deal with immediate debt vulnerabilities, the UK, alongside our G20 and Paris Club partners, agreed the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative. This brings together, for the first time, G20 and Paris Club creditors to coordinate on debt treatments for 73 low-income countries. Under the Common Framework, private creditors will be required to implement debt treatments on at least as favourable terms as those agreed by official creditors.
The UK is also at the forefront of G7 initiatives on debt transparency, which is a key part of ensuring longer-term debt sustainability. We have improved our own practices by publishing detailed loan-by-loan information of new lending, a position which was also adopted by the G7 in June 2021.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent assessment they have made of the effects of inflation on living standards.
Answered by Lord Agnew of Oulton
Economies are experiencing high inflation, mostly due to pressures from rising energy prices and disruptions to global supply chains. These global pressures are the main driver of higher inflation in the UK.
The Government’s commitment to price stability remains absolute. The Bank of England is responsible for controlling inflation – since the Bank became responsible for controlling inflation it has averaged close to the 2% target.
We understand that inflation, if higher than income growth, can reduce households’ real incomes, and that higher prices can increase the cost of living for people and households.
That is why we have taken targeted action to help families with the cost of living, including through freezing fuel and alcohol duties, the energy price cap, the Warm Home Discount and the £500m Household Support Fund to help the most vulnerable families this winter. We are also making work pay by reducing the Universal Credit taper rate from 63% to 55%, increasing work allowances by £500 per year and increasing the National Living Wage to £9.50 per hour.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they will take, if any, in response to the publication of the Pandora Papers to tackle (1) tax avoidance, (2) money laundering, and (3) other financial crimes.
Answered by Lord Agnew of Oulton
This government is committed to making the UK a hostile place for illicit finance and economic crime. We are determined to crack down on dirty money and financial exploitation, to protect our security and prosperity. We have taken action through our ‘No Safe Havens’ strategy to ensure the correct UK tax is paid; and our landmark 2019 Economic Crime Plan outlines a comprehensive response to ensure the UK cannot be abused for economic crime.Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they are taking to ensure value for money in public spending.
Answered by Lord Agnew of Oulton
Spending Review 2021 has placed a renewed emphasis on ensuring that every pound of taxpayers’ money is spent well and focused on the areas that make the most difference to people’s daily lives.
The government has set clear outcomes for what spending will buy; ensured that all decisions are informed by the best quality evidence; encouraged joint working between departments; and taken further action to drive out low value or inefficient spend. Following the efficiency and savings review earlier this year, Spending Review 2021 confirms savings of 5% against day-to-day central departments budgets in 2024-25.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent steps they have taken to help reduce economic inequality.
Answered by Lord Agnew of Oulton
Distributional analysis published at Autumn Budget and Spending Review 2021 shows that in 2024-25, tax, welfare and spending decisions made since Spending Round 2019 will have benefitted the poorest households most, as a percentage of income. The analysis also shows that in 2024-25, the poorest 60% of households will receive more in public spending than they contribute in tax.
Work is the best route out of poverty and that is why the government is investing £6 billion in labour market support over the next three years to help people move into, and progress in work. This builds on the success of the Plan for Jobs, with over 2 million fewer people expected to be unemployed than previously thought.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to reduce VAT on (1) home renovation, and (2) retrofit work, in order to support households to invest in energy efficiency measures.
Answered by Lord Agnew of Oulton
A reduced rate of VAT at five per cent is maintained for some residential renovations, including those that increase the number of dwellings or renovating properties that have been empty for two years or more, subject to certain conditions.
Expanding the reliefs that are already available would come at a cost to the exchequer. For example, expanding the reduced rate already available to include all renovations and repairs is estimated to cost the Exchequer at least £3.75 billion a year.
While all taxes are kept under review, the Government has no plans to review the VAT treatment of home renovations.