Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by LSE London entitled Releasing The Mortgage Prisoners, Proposed solutions and illustrative costings, Final Report, published in February 2023, whether he has made an assessment of the implications for his policies of the findings in that report.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
The Government understands that being unable to switch your mortgage can be extremely stressful.
The Government has consistently committed to looking for practical and proportionate options where they will deliver genuine benefits for affected mortgage borrowers, and where interventions are fair to borrowers in the active market, and to taxpayers. We will consider the proposals put forward in this very recently published report carefully.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether National Insurance incentives for employers will be included in his Spring Budget 2023.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The Government will consider policy decisions in the upcoming Budget in the context of the wider fiscal and economic situation. All aspects of the tax system are kept under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the property cost cap for the Help to Buy ISA scheme.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
The Help to Buy: ISA scheme aims to help those who are struggling to save enough to get onto the housing ladder. Since its launch in 2015, the scheme has supported 531,507 property completions across the UK, with a mean property value of £176,828 compared with an average first-time buyer house price of £245,350.
Help to Buy: ISA account holders can transfer their funds to a Lifetime ISA without incurring any penalties. The Lifetime ISA allows first-time buyers to benefit from the Government bonus when purchasing properties up to £450,000 anywhere in the UK.
Further information on the Lifetime ISA together with a comprehensive list of other home purchase support schemes can be found on the Government’s website below:
https://www.ownyourhome.gov.uk/
The Government keeps all aspects of savings policy under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the Approved Mileage Allowance Payment amounts before the Spring Budget 2023.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Approved Mileage Allowance Payments (AMAPs) are used by employers for administrative ease as a means of reimbursing an employee’s expenses for business mileage in their private vehicle.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the Energy Profits Levy in the context of profits announced by energy companies.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Energy Profits Levy was introduced in May 2022 to respond to very high prices that meant oil and gas companies are benefiting from exceptional profits. At Autumn Statement 2022, the government confirmed the rate of the levy would rise by a ten percentage points to 35%. This is on top of the 40% tax rate under the permanent regime, bringing the combined headline rate of tax for the sector to 75%, one of the highest amongst comparable North Sea regimes.
The Office for Budget Responsibility’s (OBR) forecast at Autumn Statement 2022 estimates revenues from EPL are expected to be £41.6 billion over the next five years. Total UK oil and gas revenues over this period are forecast to be around £80 billion.
As with all taxes, this is kept under review and any changes will be considered and announced by the Chancellor.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the $9.5 billion quarter three profits reported by Shell and reported comments from that company’s CEO that it is ready for further windfall taxation, if he will make an assessment of the potential merits increasing the Energy Profits Levy.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The Energy Profits Levy (EPL) was introduced from 26 May in response to sharp increases in oil and gas prices over the past year and to help fund cost of living support for UK households.
The EPL is an additional 25 per cent surcharge on UK oil and gas profits, taking the combined headline tax rate for oil and gas companies operating in the UK and on the UK Continental Shelf to 65 per cent, more than triple the rate paid by other businesses.
As with all taxes, this is kept under review. It would not be appropriate for the Government to comment on the affairs of individual taxpayers.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help support people who are unable to switch to a new fixed rate mortgage, in the context of rising interest rates.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
Around 75% of residential mortgage borrowers are on a fixed rate, and therefore shielded from rate rises in the near term.
There remains a broad range of mortgage products on the market, and those looking to switch mortgages are encouraged to shop around and speak to a mortgage broker in order to find the best possible product for them.
Ultimately though, the pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with (a) banks and (b) other financial institutions on ensuring that people struggling with the cost of living and rising bills do not face financial penalties on overdrafts and mortgages if they default during the cost of living crisis.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
Treasury Ministers meet regularly with banks and other financial institutions to discuss their general lending and retail banking practices. These financial institutions stand ready to support consumers in the current economic climate. For those struggling to keep up with their mortgage payments or pay back their overdrafts in light of the rising cost of living, it is important they make early contact with their mortgage lender or overdraft provider.
The Financial Conduct Authority (FCA) has guidance that requires firms to offer tailored forbearance options to mortgage borrowers and overdraft users that are in financial difficulty. For mortgage borrowers, this could include measures such as a payment holiday, partial payment, or an extension of mortgage term. For overdraft users, the FCA set rules for banks and building societies. These include mandating that they cannot charge more for unarranged overdrafts than arranged overdrafts, banning fixed daily and monthly charges, and measures to improve the transparency of pricing. In instances where an overdraft provider identifies that a customer has a pattern of repeat overdraft use and may see increased fees on their borrowing, the rules also require firms to develop strategies to reduce harm to customers.