Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an estimate of the (a) cost to HMRC of administering the Loan Charge since 2019 and (b) total amount recovered in that period; and what assessment she has made of the value for money of that policy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2024, the Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The review was led by Ray McCann, a former President of the Chartered Institute of Taxation.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
HMRC are committed to supporting people through this process and are working hard to give them certainty on their tax positions as quickly as possible. This includes a dedicated service to guide people through the settlement process and provide extra support for those who need it. HMRC can also provide reasonable adjustments to meet an individual’s needs.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on of the Loan Charge on individuals subject to it; and whether governance mechanisms are in place for people in serious financial and personal distress.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2024, the Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The review was led by Ray McCann, a former President of the Chartered Institute of Taxation.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
HMRC are committed to supporting people through this process and are working hard to give them certainty on their tax positions as quickly as possible. This includes a dedicated service to guide people through the settlement process and provide extra support for those who need it. HMRC can also provide reasonable adjustments to meet an individual’s needs.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the effectiveness of the Loan Charge in meeting its intended objectives; and whether she plans to review that policy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Budget 2024, the Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge. The review was led by Ray McCann, a former President of the Chartered Institute of Taxation.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
HMRC are committed to supporting people through this process and are working hard to give them certainty on their tax positions as quickly as possible. This includes a dedicated service to guide people through the settlement process and provide extra support for those who need it. HMRC can also provide reasonable adjustments to meet an individual’s needs.
Asked by: Bobby Dean (Liberal Democrat - Carshalton and Wallington)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, when funding for Start for Life services will be confirmed for Sutton Council; and what assessment he has made of the potential impact of the absence of such funding on support for babies and new parents in Carshalton and Wallington constituency in 2025–26.
Answered by Ashley Dalton - Parliamentary Under-Secretary (Department of Health and Social Care)
The 10-Year Health Plan sets out an ambitious agenda on how we will improve the nation’s health by creating a new model of care that is fit for the future.
We recognise that local authorities such as Sutton Council are ambitious, seeking to deliver universal support to babies, children, and their families, and prevent escalating need. We are committed to delivering the 10-Year Health Plan’s ambition to match Healthy Babies, formerly Start for Life, to Best Start Family Hubs over the next decade.
Healthy Babies funding is helping families during the critical 1,001 days, and parents have said they are more confident in feeding their babies and have better perinatal mental health because of this support. We continue to assess how we can best support early-years service integration across the country and remain committed to working with delivery partners locally to achieve this.
Healthy Babies is one element of our broader commitment to supporting babies, children and families. From April 2026, Best Start Family Hubs will expand to every single local authority, including Sutton Council, backed by over £500 million to reach up to half a million more children and families. This funding will help all local authorities to integrate a range of statutory and non-statutory health and family services.