Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the easement for levying wine duty beyond February 2025.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government has supported the wine industry with duty freezes at 6 of the last 12 fiscal events, including the decision at Spring Budget 2024 to freeze alcohol duty until 1 February 2025.
As part of the new alcohol duty reforms, the Government has removed the sparkling wine premium, meaning sparkling wines now pay the same amount of duty as still wines of the same strength. As a result, an 11% sparkling wine now pays 61p less duty than under the previous duty system. While higher strength wines will be subject to more duty under the reforms than under the previous system, lower strength wines will be subject to less duty.
The Government has been clear that the wine easement is a temporary and transitional measure to support the wine industry to adapt to the new duty system by 1 February 2025. The Government is confident that the necessary changes are manageable within the time provided and that the wine industry has the information required to update their systems and calculate the correct duty.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to support the wine industry after February 2025.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government has supported the wine industry with duty freezes at 6 of the last 12 fiscal events, including the decision at Spring Budget 2024 to freeze alcohol duty until 1 February 2025.
As part of the new alcohol duty reforms, the Government has removed the sparkling wine premium, meaning sparkling wines now pay the same amount of duty as still wines of the same strength. As a result, an 11% sparkling wine now pays 61p less duty than under the previous duty system. While higher strength wines will be subject to more duty under the reforms than under the previous system, lower strength wines will be subject to less duty.
The Government has been clear that the wine easement is a temporary and transitional measure to support the wine industry to adapt to the new duty system by 1 February 2025. The Government is confident that the necessary changes are manageable within the time provided and that the wine industry has the information required to update their systems and calculate the correct duty.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of including fiscal easing measures for pubs in the Autumn 2021 Budget.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government keeps all taxes under review, and changes are announced in the usual way at budgets and fiscal events.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has met with representatives from the aviation industry to assess what financial support they need to survive the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Chancellor speaks to industry representatives on a regular basis about a range of matters, including support for the aviation industry.
The Government recognises the challenging circumstances facing the aviation industry as a result of Covid-19 and firms experiencing difficulties can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital and flexibilities with tax bills. In addition to economy-wide measures such as the Coronavirus Job Retention Scheme, the aerospace sector and its aviation customers are being supported with almost £11 billion made available through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility and grants for research and development. This includes £8bn of guarantees provided by UK Export Finance.
In addition, the renewed Airport and Ground Operations Support Scheme that the Chancellor announced in his Budget will provide support for eligible businesses with their fixed costs for a further six months, up to the equivalent of their business rates liabilities for the first half of the 2021-22 financial year, subject to certain conditions and a cap per claimant of £4m.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the Customs Handling of Import and Export Freight system on wine importers; and if he will make an assessment of the potential merits of providing additional support to wine importers to help tackle issues relating to that system.
Answered by Jesse Norman
The Government recognises that businesses must get to grips with new customs procedures and is providing support.
The Customs Handling of Import and Export Freight (CHIEF) system continues to work well. In practice, most businesses do not connect to CHIEF, using the services of a customs intermediary instead or, if they do their own customs administration, commercial software that interacts with CHIEF.
HMRC have engaged extensively with excise trade associations through the Joint Alcohol and Tobacco Consultation Group (JATCG) which has included regular meetings with the Wines and Spirits Trade Association (WSTA). HMRC will continue that support and help to trade associations and individual businesses.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the benefits of an industry-wide commitment to membership of LINK and the Post Office Banking Framework ahead of the introduction of legislation protecting access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK and has committed to protecting access to cash for those that need it. The Government published a Call for Evidence on 15 October 2020 seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Call for Evidence closed on the 25 November 2020. The Government is considering responses and will set out next steps in due course.
During the COVID-19 pandemic, the Treasury has been working closely with regulators and industry to ensure customers continue to have access to essential banking services, while also protecting the safety of staff and customers. This has meant the vast majority of people have been able to access cash through the pandemic.
The Government continues to be fully supportive of the Post Office Banking Framework Agreement. The agreement allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK until December 2022. The terms of future Banking Framework Agreements are commercial decisions between industry and the Post Office. The Government will continue to engage with industry and the Post Office to ensure that that all customers, wherever they live, continue to have access to over the counter banking services.
Since 1998, all the major UK banks and building societies have participated in LINK, enabling their ATMs to be used by customers of the other members of the network. Presently, ATMs are the most commonly used means of withdrawing cash. Membership of LINK is a commercial decision.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing short term measures to protect the cash system following the national covid-19 lockdown announced in January 2021.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK and has committed to protecting access to cash for those that need it. The Government published a Call for Evidence on 15 October 2020 seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Call for Evidence closed on the 25 November 2020. The Government is considering responses and will set out next steps in due course.
During the COVID-19 pandemic, the Treasury has been working closely with regulators and industry to ensure customers continue to have access to essential banking services, while also protecting the safety of staff and customers. This has meant the vast majority of people have been able to access cash through the pandemic.
The Government continues to be fully supportive of the Post Office Banking Framework Agreement. The agreement allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK until December 2022. The terms of future Banking Framework Agreements are commercial decisions between industry and the Post Office. The Government will continue to engage with industry and the Post Office to ensure that that all customers, wherever they live, continue to have access to over the counter banking services.
Since 1998, all the major UK banks and building societies have participated in LINK, enabling their ATMs to be used by customers of the other members of the network. Presently, ATMs are the most commonly used means of withdrawing cash. Membership of LINK is a commercial decision.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will appoint the Financial Conduct Authority to track changes in cash acceptance by UK businesses in response to the finding in research from Which? that found 1 in 3 people have had their cash refused since the beginning of the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK and has committed to protecting access to cash. The Government published a Call for Evidence on 15 October 2020 seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system.
The Government will ensure that regulators have the right responsibilities and powers to oversee the cash system. As set out in the Call for Evidence, effective coordination between the financial authorities will continue to be critical, but the Government considers that there may also be benefit in giving a single authority overall responsibility for ensuring the retail cash system meets the needs of consumers and businesses. The Government’s view is that the FCA may be well positioned to take on the function through legislation. The Call for Evidence closed on the 25 November 2020. The Government is considering responses and will set out next steps in due course.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. It is important to wash your hands regularly. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the March 2020 Budget, what his timetable is for bringing forward legislative proposals for protecting people’s ability to access cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains important to millions of people across the UK and has committed to protecting access to cash. The Government published a Call for Evidence on 15 October 2020 seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system.
The Government will ensure that regulators have the right responsibilities and powers to oversee the cash system. As set out in the Call for Evidence, effective coordination between the financial authorities will continue to be critical, but the Government considers that there may also be benefit in giving a single authority overall responsibility for ensuring the retail cash system meets the needs of consumers and businesses. The Government’s view is that the FCA may be well positioned to take on the function through legislation. The Call for Evidence closed on the 25 November 2020. The Government is considering responses and will set out next steps in due course.
The Government also remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and assess risks around cash relating to COVID-19. In order to help control the virus, all businesses and individuals are encouraged to follow the latest Government advice. It is important to wash your hands regularly. To work safely, retailers have been recommended to minimise contact around transactions, for example, considering using contactless payments. It remains the individual retailer’s choice as to whether to accept or decline any form of payment, including cash or card.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support is available for people who are employed in the coach tourism industry whose work has been adversely affected by the covid-19 pandemic.
Answered by Kemi Badenoch - President of the Board of Trade
The Government appreciates this is a difficult time for many businesses, including coach tourism companies. With the resurgence of the virus and tightening of restrictions to protect people's health, we have taken further steps to protect jobs and businesses.
People who are employed in the coach industry can benefit from the Coronavirus Job Retention Scheme (CJRS), which will remain open until 2 December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
Self-employed individuals in the coach industry can benefit from the Government’s recent announcement of more generous support for the self-employed, who will now receive 80% of average trading profits in November. As SEISS grants are calculated over 3 months, this increases the total level of the grant to 55% of trading profits for November to January and the maximum grant will increase to £5,160. We will also be paying this out more quickly by bringing forward the SEISS 3 claims window from 14 December to 30 November.
To support businesses with their cashflow, on 2 November the Chancellor also announced that the application deadline for the government-backed loan schemes have been further extended until 31 January 2021.