Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how he plans to allocate the proposed £800 million for Northern Ireland, Scotland and Wales as part of his levelling up fund.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The £4 billion Levelling Up Fund announced at the Spending Review is being extended to directly support communities in all regions and nations of the UK. The £4 billion Fund announced at the Spending Review will now be made £4.8 billion to operate UK-wide. The Fund will invest at least £800m in Scotland, Wales and Northern Ireland. The Fund will be allocated competitively and be open to all local areas across the UK to boost growth and spread opportunity. Further details on how the Fund will operate will be published in the prospectus shortly – including who can bid, the types of projects eligible for funding, and the criteria for assessing proposals.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to announce details of how MPs can apply for up to £20 million under his proposed levelling up plan.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The £4 billion Levelling Up Fund announced at the Spending Review is being extended to directly support communities in all regions and nations of the UK. The £4 billion Fund announced at the Spending Review will now be made £4.8 billion to operate UK-wide. The Fund will invest at least £800m in Scotland, Wales and Northern Ireland. The Fund will be allocated competitively and be open to all local areas across the UK to boost growth and spread opportunity. Further details on how the Fund will operate will be published in the prospectus shortly – including who can bid, the types of projects eligible for funding, and the criteria for assessing proposals.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of deferring the first repayments of the Coronavirus Business Interruption Loan Scheme due in April 2021 in light of the ongoing financial pressures on businesses as a result of the covid-19 outbreak.
Answered by John Glen
Under the Coronavirus Business Interruption Loan Scheme (CBILS) rules, capital repayments start immediately, unlike the Bounce Back Loan Scheme (BBLS) where no repayments are due from the business during the first 12 months of the facility. As a result, many CBILS borrowers started repaying their facilities from the date they were taken out.
Following the Chancellor’s announcement at the Winter Economy Plan, to help businesses repay their CBILS facilities the Government have amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where the borrower is in difficulty and where the lender judges that an extension would help their situation. I should be clear that CBILS term extensions will be offered at the discretion of lenders, unlike the “Pay As You Grow” options for Bounce Back loans. Such extensions would therefore be given in line with a lender’s forbearance policies.
Any business concerned about their ability to repay their finance should discuss this with their lender in the first instance. Given loans under CBILS are varied and resemble more traditional commercial lending, CBILS borrowers are more likely to benefit from tailored engagement with their lender if they have concerns about repayments. Lenders have an ongoing relationship with CBILS borrowers and will be best placed to provide support tailored to an individual businesses circumstance.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to defer the first payments of the Coronavirus Business Interruption Loan Scheme, due in April 2021, in response to the financial pressures on businesses resulting from the covid-19 outbreak.
Answered by John Glen
Under the Coronavirus Business Interruption Loan Scheme (CBILS) rules, capital repayments start immediately, unlike the Bounce Back Loan Scheme (BBLS) where no repayments are due from the business during the first 12 months of the facility. As a result, many CBILS borrowers started repaying their facilities from the date they were taken out.
Following the Chancellor’s announcement at the Winter Economy Plan, to help businesses repay their CBILS facilities the Government have amended the CBILS rules to allow lenders to extend loan terms from six to a maximum of ten years where the borrower is in difficulty and where the lender judges that an extension would help their situation. I should be clear that CBILS term extensions will be offered at the discretion of lenders, unlike the “Pay As You Grow” options for Bounce Back loans. Such extensions would therefore be given in line with a lender’s forbearance policies.
Any business concerned about their ability to repay their finance should discuss this with their lender in the first instance. Given loans under CBILS are varied and resemble more traditional commercial lending, CBILS borrowers are more likely to benefit from tailored engagement with their lender if they have concerns about repayments. Lenders have an ongoing relationship with CBILS borrowers and will be best placed to provide support tailored to an individual businesses circumstance.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress the UK-EU Joint Committee has made on the VAT Margin scheme for goods moving between Great Britain and Northern Ireland.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Northern Ireland Protocol frames the approach to VAT on goods, including the second-hand margin scheme, in Northern Ireland. As set out in the Command Paper on the Northern Ireland Protocol in December, the Government is aware of concerns raised about the changes to the second-hand margin scheme on certain specific sectors moving goods from Great Britain to Northern Ireland.
The Government is aiming to minimise disruption for Northern Ireland traders to the extent possible, including through discussions with the European Commission as appropriate.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to assist second hand car dealers in Northern Ireland who have been affected by changes to VAT margin after the end of the transition period.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Northern Ireland Protocol governs the approach to VAT on goods, including the second-hand margin scheme, in Northern Ireland. As is the case for tax policy generally, the Government is keeping this under review.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support the Government is providing to the Northern Ireland Executive to support high streets during the covid-19 outbreak.
Answered by Steve Barclay
Throughout the Covid-19 pandemic, the UK Government has supported businesses in Northern Ireland.
To give the Northern Ireland Executive the upfront certainty to plan and deliver their Covid-19 response this year, the UK Government guaranteed they would receive at least £2.8 billion in additional resource funding on top of their Spring Budget 20 funding. Spending Review 2020 is also providing a further £540 million for the Northern Ireland Executive in relation to Covid-19 in 2021-22. It is for the Executive to decide how to use this funding.
This is on top of all the UK-wide schemes that the UK government has introduced this year to support all parts of the UK, including the Coronavirus Job Retention Scheme (CJRS), Self-Employed Income Support Scheme (SEISS) and Coronavirus Business Interruption Loan Scheme (CBILS).
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that the VAT paid on second hand vehicles entering Northern Ireland from Great Britain is solely for the profit made rather than on the sale price of the vehicle after the transition period.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Northern Ireland Protocol frames the approach to VAT on goods, including the second-hand margin scheme, in Northern Ireland. As is the case for tax policy generally, the Government is keeping this under review.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what (a) financial support to furlough staff employed by and (b) other financial support for political parties has been allocated (i) intentionally and (ii) in error during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC are not able to provide information on political parties or any other specific organisations that may have received financial support from the Coronavirus Job Retention Scheme (CJRS).
This is because of HMRC’s duty of confidentiality. HMRC cannot publish identifying information that relates to their functions, which includes the CJRS, unless there is an appropriate legal basis for publication. No such legal basis was in place for the CJRS prior to 12 November 2020 when the latest CJRS Direction was signed.
In line with the published direction, as part of HMRC’s commitment to transparency and to deter fraudulent claims, HMRC will publish information about employers who claim for periods starting on or after 1 December 2020.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much funding has been returned to his Department from the Northern Ireland Executive in each of the last five financial years.
Answered by Steve Barclay
The Statement of Funding Policy sets out the amount that the Northern Ireland Executive is able to put through Budget Exchange, which allows the Executive to carry over underspends from one year to the next. A limit of 0.6% Resource DEL and 1.5% Capital DEL can be carried forward in any year. Any underspends in excess of these limits will be forfeited unless exceptionally agreed otherwise with HM Treasury.The Northern Ireland Executive publishes information on underspends in end of year accounts and underspends for the past 5 years are published here: https://www.finance-ni.gov.uk/sites/default/files/publications/dfp/FOI%20DOF%202020-0091%20Response.pdf