Found: • Baroness McIntosh of Hudnall • Lord McLoughlin • Charlotte Moar (external member) • Lord Morse

Found: • Baroness McIntosh of Hudnall • Lord McLoughlin • Charlotte Moar (external member) • Lord Morse

Found: Committee Minutes Wednesday 11 September 2024 at 15.45pm in Committee Room 3A Present: Lord Morse

Found: Baroness Kidron 12 Proposal 6: Letter from Lord Kirkhope of Harrogate 15 Proposal 7: Letter from Lord Morse

Found: Baroness McIntosh of Hudnall 5/5 Lord McLoughlin (from January 2024) 1/2 Penny Mordaunt MP 5/5 Lord Morse

Found: Baroness McIntosh of Hudnall 5/5 Lord McLoughlin (from January 2024) 1/2 Penny Mordaunt MP 5/5 Lord Morse

Found: Finance Committee Minutes Tuesday 12 March 2024 at 12.30 pm in Committee Room 3A Present: Lord Morse

Found: Resignation as Chair of the Office for Local Government Correspondence to Lord Morse KCB, dated 29

Found: Hon Nigel Evans MP (Chair) • Lord Vaux of Harrowden (from February 2024) (Deputy Chair) • Lord Morse

Found: were received from Nickie Aiken MP , Sir Charles Walker MP , Lord McLoughlin , Baroness Scott and Lord Morse

Found: Lord Morse was aware of our intention to do this and the extent of our powers , before the conclusion

Found: as part of our on -going inquiry into Oflog .1 This position was held on an interim basis by Lord Morse

Found: • Baroness McIntosh of Hudnall • Lord McLoughlin • Charlotte Moar (external member) • Lord Morse

Found: benchmarking work was shared with the Sub- Committee of the Programme Board, which was then chaired by Lord Morse

Found: • Baroness McIntosh of Hudnall • Lord McLoughlin • Charlotte Moar (external member) • Lord Morse

Found: Letter from the Chair to Lord Morse KCB, dated 29 April 2024, concerning his resignation as Chair of

Found: In the light of Lord Morse, sadly, having to step down, we think it is very important that there is

Found: Communities Committee including, mo st recently , during a Committee oral evidence session with Lord Morse

Found: I looked at the transcript of your session with Lord Morse, and he said it is really important that

Found: (Deputy Chair) • Earl of Kinnoull • Baroness McIntosh of Hudnall • Lord McLoughlin • Lord Morse

Found: Committee Minutes Wednes day 21 February 2024 at 3.45pm in Committee Room 3A Present: Lord Morse

Found: Crossbench) Baroness McIntosh of Hudnall (Labour) Rt Hon Lord McLoughlin (Conservative) Lord Morse

Found: Crossbench) Baroness McIntosh of Hudnall (Labour) Rt Hon Lord McLoughlin (Conservative) Lord Morse

Found: Crossbench) Baroness McIntosh of Hudnall (Labour) Rt Hon Lord McLoughlin (Conservative) Lord Morse

Found: However, Lord Morse said “ HMRC should continue being able to settle and investigate cases prior to

Found: Attendees Programme Board Officials Nigel Evans MP Dr Patsy Richards (Client Team) Lord Morse

Found: supplementary estimate had been endorsed by the finance sub - committee of the Programme Board, chaired by Lord Morse

Found: 1 March 2024 Dear Clive, Thank you for inviting Lord Morse and me to give evidence

Found: Minutes R&R Programme Board Agendas Minutes R&R Hub6• Rt Hon Nigel Evans MP (Chair) • Lord Morse

Found: Lord Morse (incoming Chair) , Fehintola Akinlose (Finance and Procurement Director) , Andy Helliwell

Found: Rowley-insists-Oflog-will-not-take-over-audit/230598 6 https://www.lgcplus.com/politics/governance-and-structure/lord-morse-oflog-can-support-further

Found: speeches/local-government-association-annual-conference-2023-secretary-of-states- speech 3 See Lord Morse

Found: In addition, Cllr Stevens has also met directly with OFLOG’s chair, Lord Morse, to brief him directly

Found: We also refer members of the Committee to the letter from Minister Hoare and Lord Morse on 19 December

Found: Lord Morse: That is right.

Found: Lord Morse: That is right.

Found: Financial Review (Morse Report) Lord Morse briefed the Committee.

Found: Client Board Programme Board (in attendance) Simon Burton Nigel Evans MP Marianne Cwynarski Lord Morse

Found: Client Board Programme Board (in attendance) Nickie Aiken MP Nigel Evans MP Sir John Benger Lord Morse

Found: Attendees Programme Board Officials Nigel Evans MP Dr Patsy Richards (Client Team) Lord Morse

Found: Attendees Programme Board Officials Nigel Evans MP Dr Patsy Richards (Client Team) Lord Morse

Found: like 50,000 people who are subject to the loan charge subsequent to the recommendations that Lord Morse

Found: The document is a letter written by Simon Hoare MP and Lord Morse, Chair of the Office for Local Government

Found: Lord Morse, former Comptroller and Auditor General of the National Audit Office, was appointed interim

Found: , Palace of Westminster Meeting time 13:00-16:00 Attendees Programme Board Officials Lord Morse

Found: Apologies were received from Lord Sherbourne of Didsbury , Sir Geoffrey Clifton -Brown MP and Lord Morse

Found: Minutes R&R Programme Board Agendas Minutes R&R Hub7• Rt Hon Nigel Evans MP (Chair) • Lord Morse

Found: Stoneham of Droxford Lord Tomlinson together with the Hou se of Commons Finance Committee and Lord Morse

Found: review into financial management that has been taking place in the House of Commons and led by Lord Morse

Found: Client Board Programme Board (in attendance) Sir John Benger Nigel Evans MP Deidre Brock MP Lord Morse

Found: Authority) Steve Hails Mike Everett (Commons) Sir Jonathan Stephens Tom Goldsmith (Commons) Lord Morse

Found: Minutes R&R Programme Board Agendas Minutes R&R Hub5• Rt Hon Nigel Evans MP (Chair) • Lord Morse

Found: R Programme Board webpageR&R Programme Board Membership • Rt Hon Nigel Evans MP, (Chair) • Lord Morse

Found: R Programme Board webpageR&R Programme Board Membership • Rt Hon Nigel Evans MP, (Chair) • Lord Morse

Found: Minister Lee Rowley, Lord Morse, Josh Goodman – Oflog’s new interim chief executive – as well DLUHC

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 March 2024 to Question 19192 on Tax Avoidance, whether it is his Department's policy to cease recovery of any liabilities incurred before December 2010 in cases where a taxpayer has not received an update for a period of 12 months or more from the initial date of an open enquiry or assessment.

Answered by Nigel Huddleston

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.

Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal, HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis and it is its policy to collect tax where it has the ability to do so.

As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.

When HMRC opens an enquiry, the information sheet provided includes information about a taxpayer’s right to apply to the First Tier Tribunal for the enquiry to be closed. One of the grounds for making such an application is where there has been an excessive delay during which a taxpayer has not received any communication from HMRC.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 March 2024 to Question 17136 on Tax Avoidance, whether it is HMRC’s policy to seek to recover tax due for liabilities incurred before December 2010, where a taxpayer has not received correspondence relating to an open compliance check for longer than 12 months.

Answered by Nigel Huddleston

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.

However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.

HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy

As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HMRC in the last 12 months.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many section 684 notices were issued by HMRC in each of the last five years.

Answered by Nigel Huddleston

In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.

In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.

In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.

In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many notices under section 684 of the Income Tax Act 2007 have been issued to individuals with Loan Charge liabilities incurred before December 2010.

Answered by Nigel Huddleston

In the context of Disguised Remuneration (DR), HM Revenue and Customs (HMRC) has in some circumstances used the power provided under s.684(7A)(b) of the Income Tax (Earnings and Pensions) Act 2003 (the Discretion) to collect the tax owed; and since 2022, HMRC has issued around 2,700 decisions using the Discretion.

In his independent review, Lord Morse recommended that the Loan Charge should no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”.

In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to ensure there is an open tax enquiry or assessment which gives it the legal basis to do so.

In May 2022, the Court of Appeal said that HMRC could consider using the Discretion to collect tax directly from the individual who received income through a DR scheme.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the compatibility of the issuing of section 684 notices by HMRC with the recommendations of the independent loan charge review led by Sir Amyas Morse.

Answered by Nigel Huddleston

The Loan Charge is targeted at contrived tax avoidance schemes that sought to avoid Income Tax and National Insurance contributions by paying users their income in the form of loans.

In his independent review, Lord Morse recommended that the Loan Charge no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”. The government accepted this recommendation. In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to give it the legal basis to do so.

In May 2022, the Court of Appeal said that HMRC could consider using certain provisions in the PAYE system (referred to as ‘section 684(7A)(b)’) to collect tax directly from the individual who received income through a DR scheme. HMRC using these provisions where appropriate is in line with Lord Morse’s recommendation.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will have discussions with HMRC on ending actions on the loan charge.

Answered by Nigel Huddleston

The Loan Charge was introduced to ensure that people who had not had tax deducted from their incomes paid their fair share.

The Government has already had an independent review. In 2019 Lord Morse led an independent review of the Loan Charge and its implementation. Lord Morse had full discretion over how the review was run, whom he consulted, and the recommendations made. The Government accepted 19 of his 20 recommendations, which benefited more than 30,000 people, including around 9,500 who were removed from the scope of the Loan Charge entirely.

As well as recommending changes to the policy, Lord Morse was clear that the Loan Charge was necessary, in the public interest and should remain in force.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will commission an independent review into the loan charge.

Answered by Nigel Huddleston

The Loan Charge was introduced to ensure that people who had not had tax deducted from their incomes paid their fair share.

The Government has already had an independent review. In 2019 Lord Morse led an independent review of the Loan Charge and its implementation. Lord Morse had full discretion over how the review was run, whom he consulted, and the recommendations made. The Government accepted 19 of his 20 recommendations, which benefited more than 30,000 people, including around 9,500 who were removed from the scope of the Loan Charge entirely.

As well as recommending changes to the policy, Lord Morse was clear that the Loan Charge was necessary, in the public interest and should remain in force.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to update to the List of named tax avoidance schemes, promoters, enables and suppliers of 1 December 2023, what recent assessment he has made of the potential impact of changes to the loan charge that came into effect on 5 April 2019 on the financial wellbeing of freelancers.

Answered by Nigel Huddleston

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Levelling Up, Housing and Communities, what steps he is taking to ensure the independence of the Office of Local Government.

Answered by Lee Rowley

It is intended that Oflog has a degree of separation from government to support its objectives, and we will continue to facilitate that set up in the months ahead.

The Secretary of State has already appointed an independent chair, Lord (Amyas) Morse. Lord Morse has, and will continue to, provide independent advice, support, and challenge to Oflog's strategic vision, functions, and delivery priorities.

Oflog's governance structures and processes will be communicated transparently, and the department will adopt mechanisms and governance arrangements to facilitate Oflog's work.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many people HM Revenue and Customs was seeking loan charge payments from in relation to the tax years before April 2010, as of 8 September 2023.

Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs

In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010. The Government accepted this recommendation.

However, Lord Morse was also clear that, for years before this date, where there is an open enquiry or assessment under appeal HM Revenue and Customs (HMRC) should still have the ability to pursue the tax due under the existing rules. HMRC has proceeded on this basis.

HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC’s Litigation and Settlement Strategy.

Found: Lord Morse steps down as Oflog Chair

Found: Local Government – managing the period without a Chair I write in response to the sad news that Lord Morse

Found: of State to the Oflog Chief Executive PDF, 132 KB, 1 page Details On 26 March 2024, Lord Morse

Found: This will see him continue to work alongside Oflog’s interim chair, Lord Morse, to provide authoritative

Found: help them use data to improve performance. 1.67 DLUHC Ministers appointed an independent Chair, Lord Morse

Found: of State to the Oflog Chief Executive PDF, 132 KB, 1 page Details On 26 March 2024, Lord Morse

Found: Local Government – managing the period without a Chair I write in response to the sad news that Lord Morse

Found: This will see him continue to work alongside Oflog’s interim chair, Lord Morse, to provide authoritative

Found: Lord Morse (the interim Chair) and I have met a numbe r of you to discuss what you think Oflog should