Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he is taking steps to reduce the burden of business rates on small and medium businesses.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
With the conclusion of the Business Rates Review at Autumn Budget 2021, the Government has delivered meaningful reform and cuts worth £7 billion to business over the next five years. This includes a multiplier freeze in 2022-23 which will support all ratepayers, large and small, and a new temporary relief for retail, hospitality, and leisure businesses worth almost £1.7 billion in 2022-23. In addition, over a third of properties (700,000) already pay no business rates as a result of 100 per cent relief through Small Business Rates Relief, with an additional 121,000 in the taper.Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to help ensure that open banking is able to benefit as many consumers as possible.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Open Banking is a great UK success story that has brought significant benefits to the 5.5 million UK consumers and businesses who now use products and services enabled by this technology.
The government recently set out its plan for the future of UK Open Banking in a joint statement with the Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA), and the Payment Systems Regulator (PSR), including a cross-authority committee for oversight of a new entity to succeed the Open Banking Implementation Entity. Through this Joint Authority Oversight Committee the government and regulators will work closely together to maintain the UK’s leadership in Open Banking. The government is seeking to build on the initial success of UK Open Banking to help unlock and realise further benefits for consumers, businesses, and the wider economy. Open Banking should continue to support innovation and greater competition for consumers and businesses.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that people have (a) access to cash and (b) the ability to use cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government recognises that cash is an important part of daily life for millions of people across the UK, and remains committed to legislating to protect access to cash.
As part of the Financial Services Act 2021, the government made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses. The government's view is that cashback without a purchase has the potential to be a valuable facility to cash users.
From 1 July to 23 September last year, the government held the Access to Cash Consultation on further proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities. The government has carefully considered responses to the consultation and will set out next steps in due course.
Following the government’s commitment to legislate, firms are working together through the Cash Action Group to develop new initiatives to provide shared services. The government welcomes the direction set by industry’s commitments at the end of last year and looks forward to seeing what results they deliver in protecting cash facilities for local communities across the UK.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will take steps with the Financial Conduct Authority to ensure that securities issued on blockchain can be clearly distinguished from crypto asset service providers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the Money Laundering and Terrorist Financing (Information on the Payer) Regulations 2017, a cryptoasset business will be required to register with the Financial Conduct Authority if it is a firm or sole practitioner that provides cryptoasset exchange or custodian wallet services by way of business.
Securities are financial instruments giving rise to claims against the issuer, and are not businesses in and of themselves. Therefore, although a cryptoasset business may issue securities on the blockchain that confer an ownership interest in the business, these securities would be legally distinct from the business itself.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an estimate of the revenue that the digital assets sector could potentially bring to the public purse.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is committed to a global leadership in fintech and to creating a regulatory environment for digital assets in which firms can innovate, while allowing people to use new technologies both reliably and safely. The Cryptoassets Taskforce, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA) is exploring the impact of cryptoassets, the potential benefits and challenges of Distributed Ledger Technology (DLT) in financial services; as well as assessing what, if any, regulation is required in response.
Businesses trading in or using digital assets are taxed on their trading profits. Where a person realises chargeable gains from increases in value of digital assets, capital gains tax (CGT) or Corporation Tax on Chargeable Gains may be due. If CGT applies, only chargeable gains above the Annual Exempt Amount are taxed.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help the retail, hospitality and leisure sectors recover from the covid-19 outbreak.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
In December, Government announced a £1bn package of support for businesses impacted by the Omicron variant, including grants worth up to £6,000 for businesses in the hospitality and leisure sectors.
These measures are just the latest action taken to safeguard businesses and jobs and is in addition to:
Thanks to our decisive action to implement balanced and proportionate measures in response to the Omicron variant, Cabinet has decided to return to Plan A in England.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of the introduction of a frequent flyer levy.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The government’s recent consultation on aviation tax reform sought views on the government’s initial position regarding a frequent flyer levy. Having carefully considered the responses to the consultation, the government has confirmed that it remains minded to retain Air Passenger Duty as the principal tax on the aviation sector, noting in particular continuing concerns around the possible administrative complexity and data processing, handling and privacy of a frequent flyer levy.
Full details of the consultation can be found at: https://www.gov.uk/government/consultations/consultation-on-aviation-tax-reform
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the reduction in domestic air passenger duty, as announced in the Autumn Budget on 27 October 2021, on the Government's ability to achieve its aviation emissions reductions targets.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
At Budget, the Government announced that, from April 2023, it will introduce a new reduced domestic band of Air Passenger Duty (APD), covering flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK. In addition, the Government will introduce a new ultra long-haul band, which will ensure that those who fly furthest, and have the greatest environmental impact, will pay the most. Domestic aviation accounted for less than 1% of the UK’s total emissions in 2019.
Fuel duty is levied on the producers or importers of fuel, and is generally included in the price most drivers pay for petrol and diesel at the pump. Therefore, the more fuel that is consumed, the more fuel duty is paid. As noted in the Autumn Budget and Spending Review 2021 Policy Costings, there are uncertainties around the behavioural response of the fuel duty freeze.
Transport is a major cost for families and businesses, and to help with the cost of living, the government has frozen fuel duty rates, saving a cumulative £1900 for the average UK car driver, compared to the pre-2010 escalator.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the viability of using more FinTech platforms to distribute Government-backed financial loans and support packages alongside established high-street banks and lenders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is home to a world-leading Fintech sector and an impressive amount of talent and expertise in this area. The government knows that Fintech firms play an important role in the lending market, especially for smaller businesses.
I am grateful for the way the sector has responded to the current crisis by identifying opportunities where technology may support the Government’s response.
The British Business Bank (BBB) has so far accredited 28 Bounce Back Loan Scheme (BBLS) lenders, including several non-banks and alternative lenders. In addition, the BBB has in excess of 100 accredited lenders for the Coronavirus Business Interruption Loan Scheme (CBILS) and this includes several UK Fintechs.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether businesses who have started trading since the start of the covid-19 outbreak are eligible for financial support made available by the Government in response to the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Winter Economy Plan set out a package of targeted measures in response to the current economic context, which will enable businesses, including new businesses, to protect jobs, and manage their finances in the face of reduced or uncertain demand. This includes the extension of the temporary VAT reduced rate for hospitality and tourism, extending the application window of the access to finance schemes, and further support for employees and the self-employed, through the Coronavirus Job Retentions Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS) Grant Extension. Although it has not been possible to include those who have started trading since the start of the COVID outbreak in the SEISS, the SEISS is just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants. On 8 July, the Government also introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs.
More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.