Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to scrapping tax breaks for all second homes, and not just short-term lets, as a further step in dealing with the rural housing affordability crisis.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government has announced that it will abolish the Furnished Holiday Lettings (FHL) tax regime, equalising the tax treatment of landlords with short-term holiday lets and those with standard residential properties.
More broadly, the government has recently introduced a new power which will allow local authorities to double the council tax charge on second homes from 1 April 2025. In 2016, the government also introduced a three percent Stamp Duty Land Tax surcharge on purchases of additional homes.
The government has no current plans to make further changes to the tax system with respect to second homes. All government tax policy remains under review.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 13 February (HL2098), when the consultation on the Uber Britannia Ltd v Sefton MBC High Court ruling will be published.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
As announced at Spring Budget, the Government will launch the consultation on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC in April.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the extent of UK-based protection and indemnity insurance underwriting the shipping of Russian oil and products.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Oil Price Cap was designed to meet two core objectives: to bear down on Russian revenues that could otherwise be used to fund their illegal war, whilst also maintaining global energy security and flows of affordable oil to countries that need it. The measure has been effective partly thanks to the prevalence of highly sought after G7 service providers, it is very hard to make major oil trades or gain significant market share without using G7 services at all.
Where G7 services are involved in the shipping of Russian oil and oil products, these trades must be conducted at or below the relevant price cap – constraining Putin’s ability to use inflated oil revenues to sustain his war machine. This is why the UK, alongside G7 partners, have provided extensive guidance to industry to advise service providers, including insurers, on how they can move Russian oil in compliance with the price cap.
We continue to monitor our oil-related measures and investigate any potential breaches robustly.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the proposed ‘taxi tax’ on rural communities accessing essential services, particularly healthcare.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The VAT treatment of private hire vehicle services has not changed. The Government recognises, however, that the Uber Britannia Ltd v Sefton MBC High Court ruling may have VAT implications for the private hire vehicle sector. As announced at Autumn Statement 2023, the Government will consult on the potential impacts of this ruling, and will publish a consultation in due course.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to ensure that banks do not unfairly refuse applications to small businesses to open accounts, given that there is no requirement currently to tell a customer why they have been turned down.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.
Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.
On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on small businesses of many banks, including HSBC, NatWest and Santander, not allowing them to open accounts.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.
Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.
On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on small businesses in rural areas of having their bank accounts frozen or closed entirely.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government recognises the vital role SMEs play in fuelling economic growth, and it is important they can access the banking services they need.
Last year the Chancellor asked the FCA to collect evidence to help the Government understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, the Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.
On 21 July, the Government published a policy statement setting out its plans to strengthen requirements relating to users’ payment service framework contract terminations. This will increase the minimum notice period in cases of contract termination to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement service. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. Both requirements will be subject to certain exceptions, including if to do so would be unlawful.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government, further to the investigation launched by the Financial Conduct Authority on 11 January into the motor finance market, what long-term plans they have to ensure customers are charged fair and transparent prices in that market.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government believes it is vital that consumers have access to a healthy, competitive and sustainable motor finance market to enable them to spread the cost of a vehicle in a way that is manageable and affordable.
As the UK’s independent regulator, the Financial Conduct Authority (FCA) is responsible for regulating the motor finance market. It has robust powers to protect consumers in this market, and took action to ban discretionary commission models in 2021. The FCA has also confirmed that it will be taking steps to investigate historic practice in the motor finance sector, with a view to determining whether widespread misconduct has occurred and, if necessary, how redress can be delivered in an orderly and consistent way.
Treasury ministers and officials meet regularly with the FCA, and the government will continue to work closely with the FCA to ensure all customers are treated fairly.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to ensure customers are adequately supported given recent changes to HMRC’s phone support for taxpayers.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
This is a busy time for customers who want to get their taxes sorted. Directing those with simple queries to online services, where they can be resolved more quickly, will ensure telephone advisers are available to help customers with complex queries or those who cannot get online.
We know that some customers are unable to reach to us online, HMRC will continue to help them by telephone, and this includes their extra support services. The service is for customers who cannot contact them due to health or personal issues. Customers can ask for phone, video, or in-person appointments. When they phone the HMRC helplines, their advisers will assess their circumstances to offer the best option for them.
Footnote:
Information on the Extra Support can be found here:
Get help from HMRC if you need extra support: Help you can get - GOV.UK (www.gov.uk)
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that those on apprenticeships are being paid what they are legally entitled to.
Answered by Baroness Swinburne - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government is determined that everyone who is entitled to the NMW receives it.
HMRC enforces the National Minimum and Living Wage (NMW) in line with the law and policy set out by the Department for Business and Trade (DBT)
All businesses, irrespective of size or business sector are responsible for paying the correct minimum wage to their staff. HMRC won’t hesitate to take action to ensure that workers receive what they are legally entitled to.
We take seriously and review all complaints from workers including apprentices referred by the ACAS Helpline or received via the online complaints form. If anyone thinks they are not receiving at least the minimum wage, they can contact ACAS, in confidence, on 0300 123 1100 or submit a query online at gov.uk (see footnote[1]).
In addition to the enforcement of NMW legislation HMRC deliver a programme of upstream ‘Promote’ work designed to encourage employer compliance which includes apprentices. This involves a range of activities to increase both employers’ and workers’ understanding of NMW rules.
[1] www.Gov.UK https://www.gov.uk/government/publications/pay-and-work-rights-complaints .