Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of (a) tax and (b) pay slip processes for individuals with dyscalculia.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As tax and pay slip processes cover a significant range of HMRC activity, HMRC have not been able to provide a specific impact assessment for individuals with dyscalculia.
The HMRC Charter and Principles of support set out HMRC’s commitments to identifying and supporting all customers who need extra help. The need for extra help can cover a range of circumstances which could include individuals with dyscalculia.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT on spectacles for people with a disability.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government offers support for individuals to help with the cost of glasses through NHS optical vouchers. Those eligible for help include children and those on certain income-related benefits. The value of optical vouchers varies from £42.40 to £233.56, depending on the level of a patient’s glasses prescription.
While spectacles attract the standard rate of VAT, health and welfare services, including opticians and eye tests, are exempt from VAT made by qualifying opticians.
One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates.
VAT is a broad-based tax that applies to most goods and services. Any new VAT relief must be considered in the context of the current fiscal position. As set out at the end of July, the Chancellor of the Exchequer has pledged to restore economic stability after revealing £22 billion of unfunded pressures in 2024-25 inherited from the previous Government.
Restoring fiscal responsibility and economic stability are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.
As with all taxes, the Government welcomes representations on how the tax system can be improved.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that people entering into financial commitments are provided with adequate information on the (a) contract and (b) impact of borrowing.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA) is responsible for regulating the consumer credit market. It is part of a robust regulatory system which is driving the Government’s vision for a well-functioning and sustainable consumer credit market that meets consumers’ needs.
Prior to entering into an agreement, a firm must provide a consumer with a range of information, allowing them to compare the features of different credit products, and to ensure they understand the key terms of the agreement they are entering into. This includes Adequate Explanations required by FCA rules, as well as Pre-Contractual Credit Information set out in the Consumer Credit Act 1974.
Lenders are also required to adhere to rules and guidelines set out in the FCA’s Consumer Credit Sourcebook (CONC) on responsible lending. These rules are based on the principle that money should only be lent in circumstances where it is affordable and appropriate for the consumers’ needs. Such rules mandate firms to undertake affordability and creditworthiness assessments against consumers to assess their ability to repay the credit without causing financial difficulty.
You may also be interested to know that the Government is committed to reforming the Consumer Credit Act 1974 to make it fit for purpose and bolster consumer protection. As part of this, the Government will consider how to ensure consumers are better informed about the costs and conditions of credit products and can make informed decisions. The government will be publishing proposals in due course.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with HMRC on recent technical issues affecting the online self assessment process; and whether HMRC has made an assessment of the cause of those issues.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC had two unrelated incidents during August impacting the online Self-Assessment service, one for 21 hours and one for 8 hours. As part of HMRC’s standard process, both incidents were resolved as quickly as possible and analysed in post incident reviews where we took learnings and put in place actions to avoid future incidents.