Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is their response to the Institute for Fiscal Studies' assessment that (1) the Autumn Statement has extended the squeeze on public service spending to 2028–29, (2) the growth outlook has weakened, and (3) inflation is expected to stay higher for longer.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Total departmental spending in the next Parliament will continue to grow above inflation. Taken together with the significant increase (3.2% a year on average in real terms) in total departmental spending over the current Parliament, this means that total departmental spending will be £85 billion higher in real terms by 2028-29 than at the start of this Parliament (2019-20).
Earlier in the year many were predicting a recession, now the economy is growing in every year of the OBR forecast and the GDP level throughout the forecast is higher than forecast at Spring. The combined impact of Autumn Statement and Spring Budget policies are expected to permanently increase the size of the economy by 0.5% by the end of the forecast.
Inflation has been more persistent than the OBR forecast at Spring Budget 2023. The OBR has judged that high energy costs since Putin’s illegal invasion of Ukraine have had a more significant impact on inflation than it previously thought. However, we have met the PM’s priority to halve inflation this year, with inflation falling to 3.9% in November. The OBR says that Autumn Statement policies do not ‘have a material impact on the path of inflation’, and they slightly reduce inflation in 2024-25.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to ask HMRC to work with the World Customs Organisation’s Harmonised System Committee to reclassify urine drainage bags as medical devices for import tariff purposes.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
HMRC has reviewed the classification of urine drainage bags and consider the classification 3926 to be correct. This is in line with classification decisions previously issued by the World Customs Organization, which member countries are expected to follow.
Businesses who wish to make representations to reduce the UK import duty rate for these goods, or to make an application for a temporary suspension of import duties, may contact the Department for Business and Trade via TariffSuspensions@trade.gov.uk
Covid-19 critical goods, which include Urine drainage bags, are currently subject to a 0 per cent rate of Customs duty until the end of 2023.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to update the Stamp Duty Reserve Tax legislation so that the growth market exemption applies to regulated recognised growth markets that are not part of a recognised stock exchange.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
As with all aspects of the tax system, the Government will continue to keep this legislation under review.
However, there are currently no plans to extend the recognised growth market exemption from Stamp Duty Reserve Tax to markets that are not part of a recognised stock exchange.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that the UK becomes an attractive jurisdiction for digital assets companies looking to build and scale up their business.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The government believes that having robust and effective regulation will boost innovation - by giving people and businesses the confidence they need to use new technologies safely.
In April 2022, the government set out a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve. This included a commitment to consult on further regulation for cryptoassets. A consultation on the future financial services regulatory regime for cryptoasset activities was published here: https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets on Wednesday 1 February. The proposed measures position the UK as a safe jurisdiction for cryptoasset activity, fostering innovation and providing clarity for firms and consumers.
The consultation covers a number of issues, including that of geographic scope. The government proposes to capture cryptoasset activities provided in or to the United Kingdom, which would capture activities provided by UK firms to persons based in the UK or overseas, as well as those provided by overseas firms to UK persons. Whilst this is intended to be the standard approach, the government recognises that there may be nuances in the application of this for specific activities.
Given the global nature of cryptoassets, the government also remains committed to working closely with international partners, and through global fora, on our response to developments in the cryptoasset sector.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of whether digital asset firms that have left the UK to seek authorisation in other jurisdictions can still serve UK consumers.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The government believes that having robust and effective regulation will boost innovation - by giving people and businesses the confidence they need to use new technologies safely.
In April 2022, the government set out a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve. This included a commitment to consult on further regulation for cryptoassets. A consultation on the future financial services regulatory regime for cryptoasset activities was published here: https://www.gov.uk/government/consultations/future-financial-services-regulatory-regime-for-cryptoassets on Wednesday 1 February. The proposed measures position the UK as a safe jurisdiction for cryptoasset activity, fostering innovation and providing clarity for firms and consumers.
The consultation covers a number of issues, including that of geographic scope. The government proposes to capture cryptoasset activities provided in or to the United Kingdom, which would capture activities provided by UK firms to persons based in the UK or overseas, as well as those provided by overseas firms to UK persons. Whilst this is intended to be the standard approach, the government recognises that there may be nuances in the application of this for specific activities.
Given the global nature of cryptoassets, the government also remains committed to working closely with international partners, and through global fora, on our response to developments in the cryptoasset sector.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what economic changes and interdepartmental strategies they propose to address the health and financial inequalities which have resulted in certain groups being disproportionately affected by the impact of COVID-19.
Answered by Lord Agnew of Oulton
Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. We recognise that some groups have been disproportionately impacted by COVID-19 and the pandemic has exacerbated pre-existing socio-economic inequalities.
The Government has put in place an economic package of support totalling £352 billion through the furlough and self-employed income support schemes, support for businesses through grants and loans, and business rates and VAT relief.
To support people on low incomes, the Government has provided one-off £500 Test and Trace Support Payments (TTSP) to help them self-isolate when they are required to do so; to date, the government has provided more than £176 million of funding to local authorities to meet the costs of TTSP.
The Government has also extended the temporary £20 per week uplift to the Universal Credit (UC) standard allowance to the end of September, with similar support for eligible Working Tax Credit (WTC) claimants. The suspension of the Minimum Income Floor for self-employed Universal Credit claimants has been extended until the end of July. The increase to Local Housing Allowance rates for Universal Credit and Housing Benefit in cash terms in 2021-22 has also been maintained, an increase which was worth an extra £600 on average in 2020-21 for over 1.5 million households.
Women have benefited from a variety of schemes as part of this package. For example, where it was possible to link the data, 1.72 million roles held by women were furloughed at 30 April 2021 compared with 1.67 million roles held by men. As of June 6 2021, the Self-Employment Income Support Scheme (SEISS) has received over 2.6 million claims from self-employed women across the four rounds of grant. The majority of Universal Credits claimants are women: 53 per cent in April 2021.
As part of the Government’s broader support for individuals, in April workers on the National Living Wage (NLW) saw a 2.2 per cent pay increase to £8.91 an hour – worth over £345 a year for a full-timeworker. The Government also extended the NLW to those aged 23 or over.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what has been the outcome of their invitation for stakeholders to respond to their policy paper VAT and the Public Sector: Reform to VAT refund rules, published in August 2020.
Answered by Lord Agnew of Oulton
The Government is currently reviewing the responses received following the publication of the policy paper. The Government will announce its next steps in due course.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they expect to publish the review into the application of VAT as applied to the NHS.
Answered by Lord Agnew of Oulton
The Section 41 policy paper on the review into the application of VAT to the NHS was published on 27 August 2020 on the GOV.UK website as ‘VAT and the Public Sector: Reform to VAT Refund Rules’.Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what measures will be in place by 1 August to support those who are shielding from COVID-19 who cannot return to work because their workplace is not safe, but who cannot be furloughed as the deadline has passed and who will not be able to claim Statutory Sick Pay under the Government's plans to end the shielding programme on 31 July.
Answered by Lord Agnew of Oulton
On 22 June, the Prime Minister announced that the Government will relax the current public health guidance for those identified as Clinically Extremely Vulnerable (CEV) to shield at home. This means from 1 August they will be able to return to work if they are unable to work from home, provided their workplace is COVID-safe.
It is important that this group continue to take careful precautions, and employers should do all they can to enable them to work from home where this is possible, including moving them to another role if required. Where this is not possible, the CEV should be provided with the safest on-site roles that enable them to maintain social distancing from others.
If employers cannot provide a safe working environment, the CEV will continue to have access to an unprecedented package of financial support. This is not limited to the Coronavirus Job Retention Scheme, but also includes the Self-Employment Income Support Scheme and an increase in the generosity of welfare payments worth a further £8bn.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they expect to publish the review into the application of VAT as applied to the NHS.
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 Government is currently working on the section 41 VAT policy paper and this will be published in due course.