Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the public sector pay freeze on the Government's ability to achieve a high-wage economy.
Answered by Simon Clarke
The temporary pay pause announced at SR20 was a difficult but necessary step in the face of huge uncertainty and the unprecedented impact COVID-19 had on the economy. This helped protect jobs at a time of crisis and ensure fairness between the private and public sectors. The private sector saw suppressed earnings growth and increased redundancies: employment fell by 2.9% between Q1 2020 and Q1 2021, while over the same period employment in the public sector rose by 3%. 11.6m jobs, from 1.3m different employers, were furloughed. Public sector average weekly earnings rose by 4.5% in 2020/21 whilst private sector wage increases were a third lower than they were pre-crisis, at only 1.8%.
The solid recovery in the economy and labour market has meant that the government have been able to confirm at the Spending Review that public sector workers will see pay rises across the whole SR period (2022/23-2024/25).
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to introduce a salary increase in line with inflation for (a) teachers and (b) other public sector workers.
Answered by Simon Clarke
Pay for most frontline workforces – including nurses, police officers, prison officers and teachers is set through an independent Pay Review Body process. The independent review bodies provide evidence-based advice to the government on levels of pay for their remit groups. In making recommendations, review bodies need to consider both the need to recruit, retain and motivate suitably able and qualified people and the financial circumstances of the government. We will be seeking full recommendations and the award for 2022/23 will be announced next year.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to review all tax policy to ensure it does not incentivise oil and gas extraction.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Our domestic oil and gas industry produces the equivalent of around half of the UK’s primary energy needs and will continue to play an important role as we transition to a net zero economy. The industry has paid around £375bn in production taxes to date and supports thousands of jobs across the UK, directly and in the industry’s supply chains.
The Government places additional taxes on the extraction of oil and gas to ensure a fair return for the nation while also supporting the industry to address genuine costs through targeted tax reliefs, such as those to encourage the safe removal of infrastructure at the end of a field’s life.
The Government keeps all taxes under review, and any changes are made in the round at fiscal events.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of Chapter 10 Part 2 of the Income Tax (Earnings and Pensions) Act 2003 on the obligations of employment agencies and umbrella companies.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Tax Information and Impact Note published in March 2021 sets out the expected impacts of the April 2021 reform of the off-payroll working rules: https://www.gov.uk/government/publications/off-payroll-working-rules-from-april-2021/off-payroll-working-rules-from-april-2021
During the debate on the Finance Bill 2020, the Government committed to commission independent research into the short-term impacts of the reform by October 2021. That research has been commissioned. We will publish its findings once complete.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake a further review of the Loan Charge.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
A comprehensive independent review of the Loan Charge has already taken place. In September 2019, the Government commissioned Lord Morse to lead this Review.
Lord Morse’s report was published in December 2019 and concluded that it was right for the Government to collect the tax due, but also recommended changes to how the Loan Charge works.
The Government accepted all but one of the Review’s 20 recommendations, which is estimated to benefit over 30,000 individuals, removing 11,000 from the Loan Charge entirely.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of people seeking refunds as a result of the changes made by the Morse Review have been refused that refund by HMRC.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Following Lord Morse’s Independent Loan Charge Review, the Government introduced legislation requiring the Commissioners of HMRC to establish a scheme to repay relevant Voluntary Restitution elements of disguised remuneration settlements.
These amounts were voluntary payments that taxpayers had agreed to make as part of settlements concluded before changes were made to the scope of the Loan Charge. Individuals and employers had until 30 September 2021 to apply to HMRC for a refund or waiver.
HMRC repays amounts that were paid in disguised remuneration scheme settlements and/or waives amounts of instalments due that have not yet been paid if certain conditions are met.
By 18 October 2021, HMRC had processed approximately 940 applications, of which approximately 740 had received either a repayment, a waiver or both. Approximately 200 of the applications processed were either invalid or ineligible.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is planning to take to ensure access to cash for elderly and vulnerable people in response to bank closures.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash is important to the daily lives of millions of individuals and businesses across the UK, particularly to those who may be in vulnerable groups. That is why the Government has committed to protecting access to cash for those who need it and ensuring that the UK's cash infrastructure is sustainable for the long term.
The Government made legislative changes via the Financial Services Act 2021 to support the widespread offering of cashback without a purchase, which will allow shops and other businesses to offer a new form of cash withdrawal service to local communities. The Government also recently closed an Access to Cash Consultation on 23 September, setting out further proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash.
In September 2020, the FCA published guidance for regulated firms setting out its expectations for banks, building societies and credit unions when they are considering closing branches or ATMs. It requires them to notify customers and the FCA of upcoming branch closures and consider the provision of alternatives for customers.
Banks themselves are best placed to make the commercial decisions required to operate their businesses for their customers. However, the Government believes that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live and especially the most vulnerable, continue to have access to face-to-face banking services.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will set up a 24 hour suicide prevention helpline for people who are feeling suicidal as a result of facing the loan charge.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government takes concerns about the wellbeing of all taxpayers seriously and recognises that the Loan Charge can add significant pressures for some taxpayers.
Following Lord Morse’s Independent Loan Charge Review, the Government has taken further steps to mitigate the impact of the Loan Charge to ensure that the right support is in place for those who need it.
HMRC operates a settlement helpline for taxpayers who have used disguised remuneration avoidance schemes, and all call handlers are trained to identify taxpayers who might need additional support.
It would be inappropriate for HMRC, as a tax authority, to set up a helpline for those in severe mental distress. For taxpayers who need specialised help, HMRC advisors suggest they contact organisations like Samaritans or Mind.
HMRC has a well-established approach to helping those who are struggling to pay their liabilities in full. HMRC will agree a sustainable and manageable payment plan to spread the tax liability for anyone who is unable to pay in full.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will commit to new funding for local authorities to repair damaged roads and potholes.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
This Government recognises that maintaining local roads is a key priority for local communities and businesses.
At the last Spending Review, the Chancellor committed £1.125 billion in 2021/22 for local roads maintenance including the £500 million Potholes Fund committed in the manifesto. This represents a £125 million increase on typical annual funding from Spending Review 2015.
Maintenance in London, including repairing potholes, is a matter for Transport for London and the London Boroughs. This Government has supported TfL with c£4bn in emergency Covid support since the start of the pandemic.
We will set out future highways maintenance funding at Spending Review 2021.