Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the ongoing costs associated with measures announced to assist businesses and individuals during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. These steps are necessary to ensure that the country, economy and public finances are stronger in the longer-term.
Precise costs will depend on a range of factors including the impact of the crisis on the wider economy and the level of take up for each scheme.
The Office for Budget Responsibility (OBR) have published a coronavirus reference scenario on 14th April which provides insight into the potential fiscal costs under a particular set of economic circumstances and have updated their policy costings table on 30th April. In their scenario, the OBR estimate the direct cost of Government decisions to be £103.7 billion in 2020/21. The OBR note that the measures taken should help limit the long-term damage to the economy and public finances – and the costs of inaction would have been higher.
A full assessment of the economic and fiscal position will be made at the next Budget alongside an updated OBR forecast.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to recover the costs associated with measures announced to assist businesses and individuals during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. These steps are necessary to ensure that the country, economy and public finances are stronger in the longer-term.
The Government has announced substantial support through loans and guarantees, and businesses remain responsible for repaying government-supported loans.
It is clear that the costs of other measures of the Government's necessary response, and the impact on the economy, will lead to an increase in borrowing this year. The Government expects this increase in borrowing to be temporary and intends to finance this through the Government’s normal debt management operations. The OBR note that the measures taken should help limit the long-term damage to the economy and public finances, and that the costs of inaction would have been higher.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the COVID-19 pandemic on the UK's balance of payments.
Answered by Lord Agnew of Oulton
Official balance of payments statistics relating to the period of COVID-19 disruption in the UK are not yet available. The Office for National Statistics will publish trade statistics for March 2020 in May, and will publish balance of payments statistics for the first quarter of 2020 towards the end of June.
The Government has announced unprecedented support for public services, business and workers to protect against the current economic emergency. Our economic response is one of the most generous and comprehensive globally and the government is now working urgently to deliver these schemes as quickly as possible.
The Government is monitoring the impact measures are having with regard to supporting public services, businesses, and individuals, and keeps all policies under review.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is the status of the loan made by the UK to the Republic of Ireland following the financial crisis of 2008/09; what is the repayment schedule; and what are the servicing costs.
Answered by Lord Agnew of Oulton
I refer the noble Lord to the most recent statutory report on the UK’s bilateral Loan to Ireland, which the Treasury provided to Parliament as required by Section 2 of the Loans to Ireland Act 2010. The most recent version of the report was laid in Parliament on 7 February 2020 and is available in the Printed Paper Office.[1]
The report shows that the first repayment on the loan took place in April 2019. To date, four repayments have been made according to the agreed schedule. £1,613,480,000 on the principal remains outstanding. The final repayment will take place in March 2021. The Government continues to expect the loan to be repaid on time and in full.
As stipulated under the loan’s Credit Facility Agreement, Ireland pays a service fee equal to 0.18% of the remaining tranches of the loan per annum. This fee is payable on 15 December and 15 June concurrently with interest payments on the remaining tranches of the loan.
[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864414/PU2193_Ireland_loan_statutory_report_2020.pdf
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they intend to publish the findings of an investigation into the unexplained write-down by an unidentified financial institution of up to £840 million of frozen Libyan assets held in London.
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
The Office of Financial Sanctions Implementation (OFSI) within HM Treasury continues to investigate a discrepancy outlined in our previous response. I cannot comment on ongoing cases.
OFSI only publishes a summary of a compliance case when an investigation into a breach of financial sanctions results in a monetary penalty. These summaries can be found on OFSI’s ‘Enforcement of Financial Sanctions’ page on GOV.UK. Further details of the circumstances in which OFSI would issue a monetary penalty are available in the ‘Monetary Penalties for Breaches of Financial Sanctions – Guidance’, also available on OFSI’s GOV.UK page.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is the total amount of tax collected from frozen Libyan assets held in the UK since the UN Security Council Resolution 1973 (2011) S/RES/1973(2011).
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
Identifying tax receipts on frozen assets is complex, requiring entities on the sanctions list to be validated and matched against HMRC’s tax records. HMRC will do this as quickly as they can. The Treasury shall write to the Noble Lord shortly and place a copy of the letter in the Library of both Houses.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of reports that Libyan assets frozen in the UK have sustained a significant drop in value.
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
At close of business on Friday 28 September 2018 the approximate total value of frozen Libyan assets in the UK reported to the Office of Financial Sanctions Implementation (OFSI) in the Treasury was £11.2 billion. The figures for 2019 are being finalised. OFSI undertakes an annual frozen asset review requiring all persons or institutions that hold or control frozen assets in the UK to report to OFSI, from which this figure is taken.
HM Government does not own or hold frozen assets as a result of UN and EU sanctions on Libya. It is the responsibility of individuals and entities (e.g. Financial Institutions) to ensure they comply with their asset freezing obligations under the relevant sanction’s regime.
In 2019, OFSI identified an inconsistent figure relating to Libyan frozen funds reported by a financial institution when conducting the 2018 review, and contacted the institution for an explanation of the figure. The financial institution stated that an incorrect figure had been submitted in the previous year as part of its submission. This artificially inflated the figure reported to HMT for the 2017 review and therefore the overall level of frozen assets recorded for 2017.
An incorrect submission to the Treasury does not represent a loss of frozen funds. There is currently no evidence to suggest that frozen funds have been depleted or moved.
OFSI is currently investigating the discrepancy, but I cannot comment on ongoing cases and the financial institution cannot be named for legal reasons.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is the current value of Libyan assets frozen in the UK as a result of United Nations Security Council Resolution 1973 (2011) S/RES/1973 (2011).
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
At close of business on Friday 28 September 2018 the approximate total value of frozen Libyan assets in the UK reported to the Office of Financial Sanctions Implementation (OFSI) in the Treasury was £11.2 billion. The figures for 2019 are being finalised. OFSI undertakes an annual frozen asset review requiring all persons or institutions that hold or control frozen assets in the UK to report to OFSI, from which this figure is taken.
HM Government does not own or hold frozen assets as a result of UN and EU sanctions on Libya. It is the responsibility of individuals and entities (e.g. Financial Institutions) to ensure they comply with their asset freezing obligations under the relevant sanction’s regime.
In 2019, OFSI identified an inconsistent figure relating to Libyan frozen funds reported by a financial institution when conducting the 2018 review, and contacted the institution for an explanation of the figure. The financial institution stated that an incorrect figure had been submitted in the previous year as part of its submission. This artificially inflated the figure reported to HMT for the 2017 review and therefore the overall level of frozen assets recorded for 2017.
An incorrect submission to the Treasury does not represent a loss of frozen funds. There is currently no evidence to suggest that frozen funds have been depleted or moved.
OFSI is currently investigating the discrepancy, but I cannot comment on ongoing cases and the financial institution cannot be named for legal reasons.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is the estimated loss of revenue to HM Treasury as a result of the sale and distribution, within the UK, of laundered fuel, in each of the last three years for which figures are available.
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
HM Revenue and Customs (HMRC) estimates the difference between expected revenues and the tax that is actually paid in the annual publication, Measuring Tax Gaps. These estimates cannot be disaggregated by type of fraud, for example laundering.
HMRC has estimated the total oils (fuel duty) tax gap (including VAT) as follows:
The estimate for 2015-16 was calculated using a different methodology and therefore cannot be compared to the estimates for subsequent years. The oils tax gap for 2015-16 was estimated to be less than £100 million.
The table below details the number of laundering plants detected by HMRC in NI & GB in each of the last three financial years.
LAUNDERING PLANT DETECTIONS | ||
YEAR | NI | GB |
2016-17 | 5 | 6 |
2017-18 | 10 | 2 |
2018-19 | 7 | 3 |
The routine sharing of information to identify trends and emerging threats developed over many years through the Cross Border Fuel Fraud Group has continued and further built upon by the Cross Border Joint Agency Task Force introduced as part of the Stormont House (Fresh Start) Agreement. HMRC and the Revenue Commissioners together with other partner agencies are represented at both the regular Strategic and Operational meetings and this continued collaboration has been key to successfully identifying and interdicting fuel related fraud in both jurisdictions.
The table below details the number of convictions secured for oils related criminality in the UK in each of last three financial years.
Financial Year | Number of UK Convictions |
16/17 | 25 |
17/18 | 6 |
18/19 | 7 |
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many fuel laundering plants have been discovered and decommissioned in (1) Northern Ireland, and (2) Great Britain, in the last three years for which figures are available.
Answered by Earl of Courtown - Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
HM Revenue and Customs (HMRC) estimates the difference between expected revenues and the tax that is actually paid in the annual publication, Measuring Tax Gaps. These estimates cannot be disaggregated by type of fraud, for example laundering.
HMRC has estimated the total oils (fuel duty) tax gap (including VAT) as follows:
The estimate for 2015-16 was calculated using a different methodology and therefore cannot be compared to the estimates for subsequent years. The oils tax gap for 2015-16 was estimated to be less than £100 million.
The table below details the number of laundering plants detected by HMRC in NI & GB in each of the last three financial years.
LAUNDERING PLANT DETECTIONS | ||
YEAR | NI | GB |
2016-17 | 5 | 6 |
2017-18 | 10 | 2 |
2018-19 | 7 | 3 |
The routine sharing of information to identify trends and emerging threats developed over many years through the Cross Border Fuel Fraud Group has continued and further built upon by the Cross Border Joint Agency Task Force introduced as part of the Stormont House (Fresh Start) Agreement. HMRC and the Revenue Commissioners together with other partner agencies are represented at both the regular Strategic and Operational meetings and this continued collaboration has been key to successfully identifying and interdicting fuel related fraud in both jurisdictions.
The table below details the number of convictions secured for oils related criminality in the UK in each of last three financial years.
Financial Year | Number of UK Convictions |
16/17 | 25 |
17/18 | 6 |
18/19 | 7 |