Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the revenue they would receive if National Insurance was paid by those aged over 65 with incomes over the threshold; and what assessment they have made of requiring those with incomes above the threshold to pay it.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Estimated figures of the cost of the National Insurance Contributions (NICs) exemption for those aged over 65 are published by HM Revenue and Customs in their Structural Tax Reliefs publication.
A condensed version of the table of interest has been copied below, showing estimated costs annually from 2018-19 until 2023-24.
Table: HMRC NICs Structural Cost Estimates by Financial Year
Financial Year NICs structural cost estimates (£ million)
2018-19 1,300
2019-20 1,200
2020-21 840
2021-22 1,200*
2022-23 1,200*
2023-24 1,100*
*Projected estimates based upon the 2019-20 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibility’s March 2023 Economic and Fiscal Outlook.
The estimated cost of this exemption does not represent the yield if this exemption were to be abolished as other behavioural responses, including a possible increase in State Pension expenditure, would be expected to substantially reduce the yield.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the difference between the amounts agreed by the Office of Financial Sanctions Implementation in respect of fees for services and access to justice for UK legal firms on behalf of Russian individuals and companies (1) before the February 2022 invasion of Ukraine, and (2) since the invasion.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is responsible for financial sanctions implementation and enforcement.
OFSI can only issue specific licences where relevant licensing grounds exist as set out in the legislation. One such licensing ground is professional legal fees and reasonable expenses associated with the provision of legal services. This ground exists because it is important that designated persons can still access legal representation. A ‘reasonableness’ test is applied to each legal fees application which requires applicants to provide sufficient evidence to demonstrate to OFSI that the legal fees and expenses are reasonable.
OFSI releases an Annual Review each year which provides information about the number of licences issued under each regime. However, for confidentiality purposes and in order to comply with UK data protection law, OFSI does not publish details about the parties involved in individual licences granted.
Following Russia’s invasion of Ukraine and an increase in the scale and impact of financial sanctions, OFSI has processed a larger number licence applications than previous years. Many licence applications under the legal services licensing ground involve very complex legal cases, some with very high values, across multiple jurisdictions. The amounts agreed in respect of fees for legal services on behalf of Russian designated persons are not readily available and would involve disproportionate costs to gather at this time.
Even where a licensing ground exists and the reasonableness test is met, OFSI will only issue licences where doing so does not undermine the intent or purpose of the Russia sanctions regime.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will list the UK-registered companies and partnerships that the Office of Financial Sanction Implementation assessed for legal payments between October 2023 and April 2024.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is responsible for financial sanctions implementation and enforcement.
OFSI can only issue specific licences where relevant licensing grounds exist as set out in the legislation. One such licensing ground is professional legal fees and reasonable expenses associated with the provision of legal services. This ground exists because it is important that designated persons can still access legal representation. A ‘reasonableness’ test is applied to each legal fees application which requires applicants to provide sufficient evidence to demonstrate to OFSI that the legal fees and expenses are reasonable.
OFSI releases an Annual Review each year which provides information about the number of licences issued under each regime. However, for confidentiality purposes and in order to comply with UK data protection law, OFSI does not publish details about the parties involved in individual licences granted.
Following Russia’s invasion of Ukraine and an increase in the scale and impact of financial sanctions, OFSI has processed a larger number licence applications than previous years. Many licence applications under the legal services licensing ground involve very complex legal cases, some with very high values, across multiple jurisdictions. The amounts agreed in respect of fees for legal services on behalf of Russian designated persons are not readily available and would involve disproportionate costs to gather at this time.
Even where a licensing ground exists and the reasonableness test is met, OFSI will only issue licences where doing so does not undermine the intent or purpose of the Russia sanctions regime.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what was the level of payment allowed by the Office of Financial Sanctions Implementation between 24 February and 31 October 2022 under the ‘access to justice’ arrangements.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is responsible for financial sanctions implementation and enforcement.
OFSI can only issue specific licences where relevant licensing grounds exist as set out in the legislation. One such licensing ground is professional legal fees and reasonable expenses associated with the provision of legal services. This ground exists because it is important that designated persons can still access legal representation. A ‘reasonableness’ test is applied to each legal fees application which requires applicants to provide sufficient evidence to demonstrate to OFSI that the legal fees and expenses are reasonable.
OFSI releases an Annual Review each year which provides information about the number of licences issued under each regime. However, for confidentiality purposes and in order to comply with UK data protection law, OFSI does not publish details about the parties involved in individual licences granted.
Following Russia’s invasion of Ukraine and an increase in the scale and impact of financial sanctions, OFSI has processed a larger number licence applications than previous years. Many licence applications under the legal services licensing ground involve very complex legal cases, some with very high values, across multiple jurisdictions. The amounts agreed in respect of fees for legal services on behalf of Russian designated persons are not readily available and would involve disproportionate costs to gather at this time.
Even where a licensing ground exists and the reasonableness test is met, OFSI will only issue licences where doing so does not undermine the intent or purpose of the Russia sanctions regime.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why the Office of Financial Sanctions Implementation is allowing payments to representatives of sanctioned Russian Companies and individuals while war in Ukraine continues.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is responsible for financial sanctions implementation and enforcement.
OFSI can only issue specific licences where relevant licensing grounds exist as set out in the legislation. One such licensing ground is professional legal fees and reasonable expenses associated with the provision of legal services. This ground exists because it is important that designated persons can still access legal representation. A ‘reasonableness’ test is applied to each legal fees application which requires applicants to provide sufficient evidence to demonstrate to OFSI that the legal fees and expenses are reasonable.
OFSI releases an Annual Review each year which provides information about the number of licences issued under each regime. However, for confidentiality purposes and in order to comply with UK data protection law, OFSI does not publish details about the parties involved in individual licences granted.
Following Russia’s invasion of Ukraine and an increase in the scale and impact of financial sanctions, OFSI has processed a larger number licence applications than previous years. Many licence applications under the legal services licensing ground involve very complex legal cases, some with very high values, across multiple jurisdictions. The amounts agreed in respect of fees for legal services on behalf of Russian designated persons are not readily available and would involve disproportionate costs to gather at this time.
Even where a licensing ground exists and the reasonableness test is met, OFSI will only issue licences where doing so does not undermine the intent or purpose of the Russia sanctions regime.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the likely effect on economic growth and productivity of (1) revaluing council tax bands by reference to current market rates, and (2) abolishing stamp duty in favour of a reformed housing taxation arrangement.
Answered by Baroness Vere of Norbiton
The government has no current plans to revalue council tax bands by reference to current market rates or to abolish Stamp Duty Land Tax in favour of a reformed housing taxation arrangement. The government continues to keep all tax policy under review.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the number of people claiming contributory benefits as a result of the change to National Insurance contributions.
Answered by Baroness Penn
At Spring Statement 2022, the Government announced increases to the earnings thresholds from which Class 1 and Class 4 National Insurance is paid.
This change does not affect eligibility for contributory benefits entitlement as the Lower Earnings Limits and Small Profits Thresholds are unchanged.
Therefore, no change in the number of people claiming contributory benefits is expected.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government which debt collecting agencies Her Majesty’s Revenue and Customs has ceased to use within the last five years; and what were the reasons in each case.
Answered by Lord Agnew of Oulton
HMRC does not have a direct relationship with debt collection agencies. It draws their services from a panel provided by a joint venture private and public sector framework contract, which is managed by the Cabinet Office.
In the last five years, seven debt collection agencies have ceased to provide a service to HMRC via the joint venture. They either withdrew voluntarily or they ceased providing services due to commercial reasons.
HMRC cannot provide more details, including the names of the agencies or specific reasons they ceased providing services, due to commercial interests.
Debt Collection agencies form an integral part of HMRC’s debt collection strategy.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what oversight UK financial regulators have of the subsidiaries of the five main Russian banks subject to EU Council Regulation 833/2014.
Answered by Earl of Courtown - Opposition Deputy Chief Whip (Lords)
The FCA is responsible for the regulation of the financial services sector and is operationally independent from Government. This question relates to the FCA and has been passed on to them. The FCA will reply directly to Lord Rooks by letter and a copy of the letter will be placed in the Library of the House.
Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they plan to introduce a cap on cash payments for property, in addition to existing anti-money-laundering measures.
Answered by Lord O'Neill of Gatley
The Government does not currently have plans to introduce a cap on cash payments for property.
However, the Government will consult later this year on the transposition of the 4th EU Money Laundering Directive which is compatible with the revised global standards of the Financial Action Task Force. We will use this consultation to propose changes to improve the effectiveness of the UK’s anti-money laundering and counter terrorist finance regime.
The Government is committed to protecting the financial system and national security through effective and proportionate use of financial sanctions, anti-money laundering, counter-terrorist and proliferation finance measures. All those dealing with property transactions in the UK, including banks, lawyers and estate agents, are required to actively detect and prevent money laundering including by reporting suspicious activity to the National Crime Agency and by conducting customer due diligence using a risk-based approach.