Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department made an assessment of the potential impact of its proposals to change the (a) income and (b) net asset financial promotion exemption thresholds for defining high-net-worth (i) individuals and (ii) sophisticated investors on trends in the level of regional economic development.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Respondents to the consultation were broadly supportive of the changes being made. Impacts of the proposals were considered, and a de minimis impact assessment was published alongside the final reforms.
However, the Government recognises the significant concerns that have been raised recently about these changes. I met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an estimate of the number of women that will meet the new (a) income and (b) net asset financial promotion exemption thresholds for defining high-net-worth (i) individuals and (ii) sophisticated investors.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Respondents to the consultation were broadly supportive of the changes being made. Impacts of the proposals were considered, and a de minimis impact assessment was published alongside the final reforms.
However, the Government recognises the significant concerns that have been raised recently about these changes. I met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations his Department received from industry stakeholders on its proposals to change the (a) income and (b) net asset financial promotion exemption thresholds for defining high-net-worth (i) individuals and (ii) sophisticated investors.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Respondents to the consultation were broadly supportive of the changes being made. Impacts of the proposals were considered, and a de minimis impact assessment was published alongside the final reforms.
However, the Government recognises the significant concerns that have been raised recently about these changes. I met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department completed an equality impact assessment on its proposals to change the (a) income and (b) net asset financial promotion exemption thresholds for defining high-net-worth (i) individuals and (ii) sophisticated investors.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Respondents to the consultation were broadly supportive of the changes being made. Impacts of the proposals were considered, and a de minimis impact assessment was published alongside the final reforms.
However, the Government recognises the significant concerns that have been raised recently about these changes. I met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what redress is available to energy customers who dispute the accuracy of information provided to Experian by energy companies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Information on a credit report should be purely factual. For example, if a consumer has incurred arrears with an energy company that shares information with Credit Reference Agencies (CRAs), then these arrears will have been recorded on the consumer’s credit report.
If a consumer believes that an item on their credit report is inaccurate, they can raise a dispute with the CRA they received their report from, or with the organisation that supplied the information. If an organisation fails to correct any inaccuracies with the information that they have supplied to a CRA, a consumer can make a complaint to the Information Commissioner’s Office (ICO). The ICO is the UK's independent body set up to uphold information rights, and it enforces the Data Protection Act.
The ICO can tell organisations such as energy companies to help resolve a consumer’s complaint, including requiring an organisation to correct any inaccuracies. The ICO cannot award compensation, even when it gives an opinion that an organisation has broken data protection law. However, consumers have a right to claim compensation from an organisation if they have suffered damage as a result of it breaking data protection law. This includes both material damage, for example where a consumer has lost money, or non-material damage, for example where a consumer has suffered distress. They can do this by contacting the organisation directly or by making a claim in court.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what standards or criteria are used by HMRC to assess whether to apply a discretionary exemption from tax collection for a person who has been a victim of fraud.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
HMRC is a non-ministerial Government department created by statute. Its powers and duties are defined by law and it must abide by what the law says.
There are circumstances where HMRC can exercise its discretionary powers not to collect tax that is legally due. The circumstances in which the Commissioners can exercise their discretion under these powers are set out in case law and are tightly defined. Further details are provided in HMRC’s Admin Law Manual published here: https://www.gov.uk/hmrc-internal-manuals/admin-law-manual/adml3100
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the effect on the income of small businesses of the decision to extend covid-19 restrictions beyond 21 June 2021.
Answered by Kemi Badenoch - President of the Board of Trade
Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK.
The Government put in place an economic package of support totalling £352 billion through the furlough and self-employed income support schemes, support for businesses through grants and loans, business rates and VAT relief.
At the Budget, the Chancellor announced a generous extension of economic support to reflect the easing of restrictions and enable the private sector to bounce back as quickly as possible. As the Chancellor put it in his Budget speech: “we’re going long, extending our support well beyond the end of the Roadmap to accommodate even the most cautious view about the time it might take to exit the restrictions”.
Eligible businesses and employees across the United Kingdom are benefitting from the extension of the CJRS until the end of September, with employees receiving 80% of their salary for hours not worked, up to £2500 per month. From July, employers will contribute 10% of costs of unworked hours, followed by 20% in August and 20% in September. Many other countries have already done the same (Denmark, Netherlands, France, Spain), and economy-wide schemes have ended in Australia and New Zealand. Furthermore, the economy now is in a stronger position than it was last autumn, when businesses also contributed up to 20 per cent of wage costs. And lastly, the labour market is in a stronger position, with 5.5 million fewer people on furlough than in April 2020 and hiring intentions and job vacancy levels in June around 29 per cent above February 2020 levels.
Businesses that have legally remained closed or effectively cannot operate also recently benefitted from Restart Grants of up to £18,000 and can continue to benefit from the Governments £2 billion of discretionary grant funding for Local Authorities (LA) in England. Throughout the pandemic these businesses have also benefited from the £25 billion grant support that has been made available.
As restrictions have been lifted, it is right that we ask employers to contribute more to strike the balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring incentives are in place to get people back to work.
The delay of Step 4 is accommodated by the continuation of the Government’s package of economic support, with CJRS, SEISS, business grants, business rates relief and loan programmes all extending into the autumn or beyond.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what additional funding he plans to make available to small businesses impacted by the further four weeks of covid-19 restrictions.
Answered by Kemi Badenoch - President of the Board of Trade
Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK.
The Government put in place an economic package of support totalling £352 billion through the furlough and self-employed income support schemes, support for businesses through grants and loans, business rates and VAT relief.
At Budget the Government deliberately went long and erred on the side of generosity – specifically to accommodate any short delay to the roadmap. Most of the Government’s Covid support schemes do not end until September or after, in order to provide continuity and certainty for businesses and families.
The Recovery Loan Scheme (RLS) announced at Budget 2021 ensures lenders continue to have the confidence to lend, ensuring viable businesses, including small businesses, continue to have access to Government-backed finance needed throughout 2021. The scheme launched on 6 April 2021, following the closure of the emergency schemes to new loan applications on 31 March 2021, and will run until 31 December 2021. The scheme operates UK-wide, providing an 80% guarantee to lenders for term loans, overdrafts, and invoice and asset finance.
At Budget, it was also announced that local authorities in England will receive a top-up worth a total of £425m to the Additional Restrictions Grant (ARG) fund. This, combined with the £1.6 billion previously allocated, means local authorities will have received over £2bn of discretionary grant funding to support businesses which are not eligible for Restart Grants but which are nonetheless experiencing a severe impact on their business due to public health restrictions. Nearly half of the £2bn is still with local authorities and yet to be allocated.
The Coronavirus Job Retention Scheme (CJRS) was introduced to help employers whose operations have been severely affected by coronavirus to retain their employees and protect the UK economy. All businesses across the UK can access the scheme, with employees receiving 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. At Budget the government extended the CJRS until the end of September 2021, to support businesses and employees through the next stage of the pandemic. The economy now is in a stronger position than it was last autumn, when businesses also contributed up to 20 per cent of wage costs.
In line with the extension to the CJRS, the government announced at Budget 2021 that the Self-Employment Income Support Scheme (SEISS) will continue until September, with a fourth and a final fifth grant. This provides certainty to business as the economy reopens and means the SEISS will continue to be one of the most generous schemes for the self-employed in the world.
As restrictions have been lifted, it is right that we ask employers to contribute more to strike the balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring incentives are in place to get people back to work.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what income the exchequer receives from VAT on personal safety alarms.
Answered by Jesse Norman
HMRC does not hold information on the amount of VAT collected from personal safety alarms. Businesses are not required to provide information at this level in their tax returns as this would impose an excessive administrative burden.
Asked by: Caroline Nokes (Conservative - Romsey and Southampton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the barriers to making personal safety alarms zero-rated for VAT.
Answered by Jesse Norman
Emergency alarm systems are standard-rated with exception to those that are designed to be operated by a disabled person which are Zero-rated enabling disabled persons to call for help in case of illness or injury.
VAT raises significant revenue to be used for public spending, on services such as the health, defence, and education. The extension of the z/r would have to be considered in the context of £50bn of VAT relief requests that Government has received since the EU referendum.
Extending the current VAT relief to all would come at a significant cost to the Exchequer, and there are no current plans to extend the scope of the relief already in place. However, the Government keeps all taxes under review.