Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the report by the Fraser of Allander Institute Economic Perspectives: Could a reduction in alcohol consumption be good news for the UK economy?, published in June 2018, in particular its finding that an increase in alcohol taxes could boost national income and create 17,000 jobs; and what steps, if any, they intend to take in response to that finding.
Answered by Earl of Courtown - Opposition Deputy Chief Whip (Lords)
All taxes are kept under review and the impact of a change to alcohol duty is considered at each fiscal event, including its effect on jobs and the wider economy. HMRC publishes a Tax Information Impact Note explaining the impact of the change, each time a duty rate is amended.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the proposals in the consultation by HMRC Protecting your taxes in insolvency, published on 26 February, to reintroduce preferential status for any Crown creditor takes into account lost Government revenue resulting from other taxpayers suffering additional bad debts due to the priority payment of HMRC, and any consequential loss to the economy resulting other taxpayers themselves becoming insolvent due to an increased burden of bad debt; and what assessment, if any, they have made of the impact of that change on lending.
Answered by Lord Young of Cookham
The ‘Protecting your taxes in insolvency’ proposals take into account lost government revenue resulting from other taxpayers suffering additional bad debts due to the priority payment of HMRC.
Lending against fixed assets will not be impacted by this measure, but lending against floating assets will be impacted, as HMRC will move above secured creditors with floating charges in insolvencies.
At Budget 2018, the independent OBR chose not to make any adjustments to their economic forecast in response to this measure.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what was the basis for their estimate in the consultation by HMRC Protecting your taxes in insolvency, published on 26 February, that the reintroduction of preferential status for any Crown creditor would yield £185 million per annum in additional tax revenue.
Answered by Lord Young of Cookham
The estimate is the tax recovered from insolvencies that HM Revenue and Customs (HMRC) would not otherwise have collected before the policy was implemented. Adjustments were made for tax and payment timing.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how the £3 billion announced in the Budget Statement to support preparations for exiting the EU will be allocated to support those preparations; and what the process of allocating those funds will be.
Answered by Lord Bates
HM Treasury will work with departments and the Department for Exiting the European Union over the coming weeks to refine estimates of departmental requirements for 18/19 and will allocate funding accordingly in early 2018. Departmental allocations for 19/20 will be agreed at a later date, when there is more certainty on the status of our future relationship with the European Union. Departmental allocations from the Reserve will be set out at Supplementary Estimates in the relevant year as is usual.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the resources needed to support preparations for exiting the EU, and of the extent to which the £3 billion announced in the Budget Statement will be sufficient to support those preparations.
Answered by Lord Bates
The future funding requirements and the timescale over which they will be needed are dependent on the outcome of our negotiations with the European Union. The £1.5 billion set aside in both 18/19 and 19/20 is to ensure departments have sufficient resources to undertake key preparatory activities over the next two years.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the timescale for which financial support will be needed to aid the UK's exit from the EU; and what assessment they have made of the extent to which the allocation of the £3 billion announced in the Budget Statement for that purpose for the 2018–19 and 2019–20 financial years will meet this need.
Answered by Lord Bates
The future funding requirements and the timescale over which they will be needed are dependent on the outcome of our negotiations with the European Union. The £1.5 billion set aside in both 18/19 and 19/20 is to ensure departments have sufficient resources to undertake key preparatory activities over the next two years.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assurances they have given regarding the future of long-term insurance contracts in the light of Brexit.
Answered by Lord Bates
The government recognises the issues the UK’s departure from the EU creates for firms ability to service long-term contracts in force at EU exit. We are considering in particular risks arising from any change of passporting arrangements and the impact on cross-border contracts, including long-term insurance contracts.
Much of the detail of these arrangements remains a matter for the EU exit negotiation process, but we will continue to provide information to help firms deal with the challenges and take advantage of the opportunities as we move towards our future relationship with the EU.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they will seek continued participation in EU-wide co-operation on exchanging information and tackling tax evasion following the UK's withdrawal from the EU, particularly in relation to the Mutual Assistance Directive 2010/24/EU which enables cross-EU border enforcement of tax debts.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
The Mutual Assistance Recovery Directive (MARD), which dates back to 1976, provides for Member States to assist each other in recovering tax debts. The Council of Europe-OECD Convention on Mutual Administrative Assistance in Tax Matters also provides for reciprocal assistance in tax collection between signatories of the agreement, as do some of the UK’s bilateral tax treaties.
There may be specific European programmes, some of which may be partly but not wholly EU, in which we may still want to participate. The Government is still formulating its position and this will then be a matter for the EU exit negotiations.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they are seeking to retain euro clearing in the UK after the UK leaves the EU.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
Euro-denominated clearing forms an important part of the overall financial structure in London.
The Government will continue to consult with stakeholders and do what it takes to ensure that the UK remains at the forefront of the financial industry.
Asked by: Baroness Hayter of Kentish Town (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether they are taking steps to put in place transitional measures for the UK's financial services to cover the time between the UK leaving the EU and the implementation of the UK's exit agreement.
Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)
As the Prime Minister has said, it is in no one’s interests for there to be a cliff-edge for business or a threat to stability as we change from our existing relationship to a new partnership with the EU.
The Prime Minister set out the government’s ambition to reach an agreement about our future partnership by the time the 2 year Article 50 process is concluded, followed by a phased process of implementation, in which both Britain and the EU institutions and member states prepare for the new arrangements that will exist between us.