Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of bank branch closures on small businesses.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government understands the importance of face-to-face banking to communities and businesses, and is committed to championing sufficient access for all as a priority.
That is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 150 are already open.
Cash Access UK, who oversee the rollout of banking hubs, reported from their research in Brixham (Devon) and Rochford (Essex), in October 2024 that spend on the high street is 71% higher amongst those who have visited the banking hub. Almost half (47%) of businesses surveyed said they have experienced an increase in footfall thanks to the banking hub.
In addition, Financial Conduct Authority (FCA) guidance expects firms to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and put in place alternatives where reasonable. This seeks to ensure that branch closures are implemented in a way that treats customers, including business customers, fairly. Where firms fall short of expectations, the FCA may ask for closures to be paused or other options to be put in place.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the additional tax revenues that would be raised if the tax-free allowance for dividends was abolished.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC publishes estimates of the direct effects of illustrative tax changes, including changes to the dividend allowance, which are available here:
https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes
The additional revenue gained from abolishing the dividend allowance may not be completely scalable to the published ready reckoner because the distribution of dividend income may not be uniform and therefore scalable. Furthermore, the assumed behavioural responses may not be scalable either.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what additional tax revenues would be raised by abolishing the allowance for Capital Gains Tax.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
To produce an estimate for the tax revenues raised from the abolition of the Annual Exempt Amount (AEA) on Capital Gains Tax (CGT) would require a disproportionate cost.
Estimates for the tax relief afforded by the AEA can be found in HMRC’s structural tax relief publication [1] . Please note that these estimates do not represent the gain to the Exchequer should the relief be abolished as they do not explicitly model additional behavioural responses or wider economic impacts that could result from changes to the relief. The latest published estimates also reflect the AEA being £12,300 for individuals in 2022/23, compared to the current AEA of £3,000.
You may also be interested in HMRC’s direct effects of illustrative tax changes publication [2] which includes estimates for an illustrative change to the AEA. Please note that these estimates are non-linear and asymmetrical. For example, doubling or halving the AEA estimates will not accurately predict the change in revenue for a proportionate change in the AEA.
[1] https://www.gov.uk/government/statistics/minor-tax-expenditures-and-structural-reliefs/structural-tax-relief-statistics-december-2024
[2] https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes/direct-effects-of-illustrative-tax-changes-bulletin-january-2025
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which piece of legislation originally granted exemptions to the Duchy of Cornwall from paying corporation tax and capital gains tax; and what is the monetary value of these exemptions for the last 10 years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Duchy of Cornwall is not liable to pay corporation tax as it is a Crown body subject to Crown exemption. This is a matter of common law.
The Prince of Wales receives the annual income generated by the Duchy of Cornwall, but is not entitled to the capital of the Duchy. While the Crown exemption applies to income received from the Duchy, the Prince of Wales pays tax voluntarily on his income received from the Duchy of Cornwall to the extent that is not used to meet official expenditure. The Prince of Wales is otherwise subject to taxation in the normal way. These arrangements are set out in The Memorandum of Understanding on Royal Taxation, which is available at www.gov.uk/government/publications/memorandum-of-understanding-on-royal-taxation-2023
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much uncollected tax they have written off in each of the past 10 years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Financial Year | Write-offs | Remissions | Total Losses |
2023-24 | £5,049m | £567m | £5,616m |
2022-23 | £3,154m | £596m | £3,750m |
2021-22 | £1,892m | £515m | £2,407m |
2020-21 | £1,517m | £445m | £1,962m |
2019-20 | £3,538m | £546m | £4,084m |
2018-19 | £3,669m | £794m | £4,463m |
2017-18 | £3,370m | £367m | £3,737m |
2016-17 | £3,564m | £303m | £3,867m |
2015-16 | £3,171m | £604m | £3,775m |
2014-15 | £3,865m | £372m | £4,237m |
HMRC revenue losses are made up of remissions and write-offs. Remissions are debts capable of recovery, but HMRC has decided not to pursue the liability on the grounds of value for money. Write-offs are debts that are considered to be irrecoverable because there is no practical means for pursuing the liability.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many UK adults are not liable to pay income tax because their total income is less than the tax-free personal allowance.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Data on the number of UK adults who are not liable to pay income tax are not currently held or published.
HMRC publishes projections for the total number of Income taxpayers per year in table 2.1 of the Income Tax liability statistics. Current projections show there to be 37.4 million Income taxpayers in the UK in 2024-25.
The Office for National Statistics publishes projections for the total number of adults in the UK by age in their population projections. They currently estimate there to be 55.2 million individuals aged over 18 in the UK in 2024-25.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of quantitative tightening on the interest rate yield curve.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England.
The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, it is in line with international standards and essential for the effective delivery of monetary policy, so the government does not comment on the conduct or effectiveness of monetary policy.
Since October 2022, HM Treasury has transferred £85.9bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data are available in the ONS data series ID MF7A in worksheet PSA9B [1].
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what losses or profits have been made from the sale of government gilts and corporate bonds originally acquired through the quantitative easing programme.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England.
The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, it is in line with international standards and essential for the effective delivery of monetary policy, so the government does not comment on the conduct or effectiveness of monetary policy.
Since October 2022, HM Treasury has transferred £85.9bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data are available in the ONS data series ID MF7A in worksheet PSA9B [1].
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February 2024 (HL1819), when Dame Linda Dobbs's review began; what period it covers; when the review was originally scheduled to be completed; when the review is now expected to be completed; when an interim report was published; and how many victims of fraud at HBOS and Lloyds Banking Group have given evidence to it.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Dame Linda Dobbs Review began in April 2017. The review was originally scheduled to be completed by the end of 2020. It is now expected to be completed in 2025.
The review, and appointment of Dame Linda Dobbs, has been instigated by Lloyds Banking Group. No interim report is planned and the number of victims giving evidence has not been made public.
The review has stated it will cover the period from the acquisition of HBOS in 2009 to 2017, and examine relevant evidence from before 2009 to assess what ought to have been known at the time of the HBOS acquisition.
Once completed, the review’s findings will be shared with the Financial Conduct Authority (FCA), which will then consider what action is appropriate to take.
Asked by: Lord Sikka (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February 2021 (HL1819), whether they will provide a reason why the Financial Conduct Authority has not launched an independent inquiry into banking fraud at HBOS and Lloyds Banking Group.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government regularly engages with a range of stakeholders across the financial services landscape, and it is important that communication can take place in a free and frank way.
The matter of HBOS Reading is first and foremost for the Financial Conduct Authority as the independent non-governmental body responsible for regulating and supervising the financial services industry, and is subject to an ongoing review being led by Dame Linda Dobbs DBE.
The most appropriate form of investigation is a matter for the Financial Conduct Authority to determine. However, the Government notes that the regulator has already undertaken an investigation into this matter, in addition to the Cranston Review and, latterly, the work of Sir David Foskett to ensure adequate compensation. The Financial Conduct Authority will receive a copy of the Dobbs Report in due course and will be able to consider whether any further action is appropriate.