Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of HMRC's reported customer service issues on tax compliance among small businesses; and what steps they are taking to mitigate this impact.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Small businesses play a vital role in the UK economy. The majority want to meet their obligations and pay their fair share of tax, but many struggle to understand tax rules, lack confidence and find the process of complying burdensome. In response, HMRC is investing in approaches to help support including simplifying guidance whilst Making Tax Digital for VAT and data analytics have helped reduce errors. HMRC is also targeting investigations at those who bend or break the rules to help create a level playing field for the honest majority.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to reduce public sector debt from its current level of 98.3 per cent of GDP.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is committed to sustainable public finances and reducing debt, while cutting taxes and boosting economic growth. This will involve managing public spending responsibly and increasing productivity through the Public Sector Productivity Programme, while maintaining high-quality public services.
The government’s fiscal mandate is for Public Sector Net Debt excluding the Bank of England to fall as a percentage of GDP by the fifth year of the rolling forecast. In March, the independent Office for Budget Responsibility confirmed the government is on track to meet this rule, with debt falling from 93.2% (2027-28) to 92.9% (2028-29). Public sector net debt (“headline debt”) is also forecast to fall from 98.3% of GDP this year, to 94.3% in 2028-29.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to support the extension of long-term fixed-rate mortgage options to borrowers.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene.
However, lenders in the UK already do offer this type of mortgage product, and those looking to take out a long-term fixed rate mortgage are encouraged to shop around and speak to a broker to find the best possible product for them.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, following the publication of figures by the Office for National Statistics which show UK services exports grew 63 per cent in real terms between 2010 and 2023, while goods exports grew only seven per cent, what steps they are taking to boost the export of goods.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Department for Business and Trade is backing British businesses to export by knocking down trade barriers and signing new trade deals.
In 2022, the Government committed to resolving a ‘hit list’ of priority barriers worth more than £20 billion over five years. Since the start of 2022, we have resolved barriers all over the world estimated to be worth over £15 billion (over a five-year period) to UK businesses.
Businesses can access the department’s wealth of export support options on great.gov.uk, including trade advisers, Export Champions, the Export Academy, our International Markets network and UK Export Finance.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Home Office:
To ask His Majesty's Government, following news that they have rejected an offer by the European Commission for a youth mobility scheme, what factors they considered when deciding to reject the offer.
Answered by Lord Sharpe of Epsom - Parliamentary Under-Secretary (Home Office)
The UK notes the publication by the European Commission on 18 April 2024 setting out a proposal to EU Member States and seeking their agreement to negotiate a UK/EU wide Youth Mobility Scheme (YMS). This is currently a matter for the EU and its Member States and the UK has not been formally approached.
The UK currently operates 13 successful bilateral YMS schemes with international partners, including Australia, Canada and New Zealand, and continues to believe bilateral schemes with international partners are the most effective and efficient way of facilitating opportunities for young people.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the delay of the Overseas Funds Regime on the UK's attractiveness to overseas asset managers; and what steps they are taking to mitigate any negative effects.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The UK’s world-leading asset management sector is the second largest by assets under management, 48% of which are managed on behalf of overseas investors.
The Overseas Funds Regime was legislated for in the Financial Services Act 2021, to create a more streamlined process for overseas investment funds to be sold to UK investors.
On 30th January, the Economic Secretary to the Treasury announced that the Government had found the states in the European Economic Area, including the EU member states, equivalent under the Overseas Funds Regime, in respect of certain retail funds. This followed a detailed assessment of the states’ regulatory regimes.
HM Treasury and the Financial Conduct Authority (FCA) jointly published a roadmap to equivalence on the 1st of May setting out the key milestones to implement this decision.
Alongside this, the FCA published detailed guidance setting out that funds in scope of the OFR – but without temporary marketing access – will be able to apply to the FCA for recognition from September 2024. The FCA intends to invite funds with temporary marketing access to apply for recognition in tranches between October 2024 and September 2026.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to address the impact of rising inflation on household budgets while stimulating consumer spending, given the stagnation of retail sales between February and March.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is fully committed to supporting the Bank get inflation back down to the 2% target, including by keeping borrowing under control. Inflation has also come down significantly, to less than half its 2022 peak.
Over the past two years, the government has provided support to help households with the cost of living totalling £96 billion – an average of £3400 per UK household. Further support announced by the government for 2024-25 includes extending the Household Support Fund, cutting National Insurance Contributions (NICs) and raising the National Living Wage (NLW).
ONS retail sales growth was flat in March, following growth of 0.1% in February. However, due to a significant rebound in January, retail sales increased by 1.9% on the quarter. This represents the strongest quarterly growth since Q2 2021.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask His Majesty's Government what assessment they have made of figures released by the Office for National Statistics showing an average increase of 9.2 per cent in monthly rental costs in the UK in the 12 months to March; and what steps they are taking to mitigate any negative effects on (1) landlords, and (2) tenants.
Answered by Baroness Swinburne - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
The Government recognises the cost-of-living pressures that tenants are facing, and that paying rent is likely to be a tenant’s biggest monthly expense. To help households with these cost-of-living pressures the government will provide support worth a total of £108 billion between 2022 and 2025– an average of £3,800 per UK household.
Individuals who need help to make their rent payments may be eligible for a range of financial support through the welfare system. The Government is investing £1.2 billion restoring Local Housing Allowance (LHA) rates to the 30th percentile of local market rents. This significant investment will mean 1.6 million low-income households will gain, on average, nearly £800 per year in additional help towards their rental costs in 2024/25. For those who face a shortfall in meeting their housing costs and need more support, Discretionary Housing Payments and Household Support Fund grants are also available from local authorities.
Housebuilding is a priority for this Government to help create a more sustainable and affordable housing market over the long term.
The pricing of mortgages is a commercial decision for lenders in which the government does not intervene. Ultimately, the path to lower interest rates is though low inflation, which is why the Government is fully committed to supporting the Bank of England to get inflation back down to the 2% target, and our plan is working.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the Quarterly Economic Survey by the British Chambers of Commerce, published on 11 April; and what steps they are taking to address and mitigate the challenges in relation to wages, bills and other expenses faced by businesses, particularly small and medium-sized enterprises.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Department continuously monitors and works to improve our offer to help businesses access the finance and support they need.
Government works with the British Business Bank to help SMEs access finance. The Recovery Loan scheme, renamed the ‘Growth Guarantee Scheme’, was extended, which offers a 70% government guarantee on loans to SMEs. The VAT registration threshold was also raised, keeping more SMEs out of VAT.
Additional support also includes raising the Employment Allowance to £5,000, and a business rates package to support small businesses, worth £4.3 billion.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the rise in (1) unemployment, and (2) economic inactivity, highlighted in the Office for National Statistics data, published on 16 April; and what steps they are taking to support individuals transitioning back into employment.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The Department monitors a wide range of indicators to understand trends in employment, unemployment and inactivity. This is in line with advice from the ONS who say “we would advise caution when interpreting short-term changes in headline rates and recommend using them as part of our suite of labour market indicators” given the recent volatility in Labour Force Survey (LFS) estimates.
DWP supports people across the country to move into and progress in work and is committed to reducing economic inactivity. The Department delivers comprehensive employment support including through face-to-face time with Work Coaches in our Jobcentres and via more intensive contracted employment programmes. Last year we also announced a wide range of additional support via the Spring Budget and the Back to Work Plan including extending and expanding our Restart scheme, announcing our new WorkWell service and expanding Additional Jobcentre Support.