Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to support people who are self-employed during the next stages of the covid-19 outbreak.
Answered by Lucy Frazer
We recognise the impact Omicron and Government guidance is having on businesses and individuals, including the self-employed, which is why on 21 December 2021 we announced £1 billion of new grant support for the hospitality, leisure, and cultural sectors, and reintroduced the Statutory Sick Pay Rebate Scheme. This is on top of the existing package of support, in place through to Spring 2022, which includes the Recovery Loan Scheme, business rates relief, VAT reduction, and the ongoing commercial rent moratorium.
The effectiveness of our £400 billion package of interventions since the start of the pandemic, and the strength of the recovery that we have seen from previous waves means the economy is in a different place now. Employee numbers are above February 2020 levels in every part of the country and grew consistently through last year. So, it is right that our economic response in the face of Omicron adapts too and that our support is better targeted at the businesses that need it the most, providing better value for taxpayers and helping the economy to bounce back more quickly.
Throughout the pandemic, the Government has a strong track record of responding quickly, flexibly, and comprehensively in supporting jobs, businesses, individuals, and families when needed. We will continue to respond proportionately to the changing path of the virus.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that people have access to banking services.
Answered by John Glen
The way consumers and businesses interact with their banking continues to change, bringing significant benefits to those who choose to opt for the convenience, security, and speed of digital payments and banking. However, the Government also recognises that physical access to banking continues to play an important role in many people’s lives.
Decisions on opening and closing branches are a commercial issue for banks and building societies and the Government does not intervene in these decisions. However, the Government firmly believes that the impact of branch closures should be understood, considered and mitigated where possible so that all customers and businesses continue to have access to banking services.
In May 2017, the largest banks and building societies signed up to the Access to Banking Standard which commits them to ensure customers are well informed about branch closures, the bank’s reasons for closure and options for continued access to banking services. Guidance from the Financial Conduct Authority also ensures firms carefully consider the impact of branch closures on customers’ needs and consider possible alternative access arrangements.
Alternative options for access can be via telephone banking, through digital means, such as mobile or online banking, or via the Post Office. The Post Office Banking Framework allows 99% of personal banking customers and 95% of business to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure charities are not faced with additional costs from excessive bank charges.
Answered by John Glen
The decisions about what products are offered and to whom remain commercial decisions for banks and building societies. Similarly, decisions concerning the pricing of products, including account charges, are also commercial decisions for these institutions. Regulating on this issue could put additional costs on lenders that could ultimately lead to higher costs for customers. Therefore, while the government recognises and values the vital role played by the charitable sector, I hope you can appreciate that it would be inappropriate for it to intervene in these decisions.
UK Finance has developed a Business Current Account (BCA) finder tool, designed to help businesses, including charities, to compare the full range of bank accounts available and find products that best suit their needs. This tool also has a useful ‘Covid Update’ feature to highlight which providers are currently open and closed to applications.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to tackle tax evasion by multinational companies.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC’s role is to collect the right amount of tax due under UK law. HMRC work to make sure large businesses, like all other taxpayers, pay all the taxes due under UK law.
In line with HMRC’s published criminal investigation policy, while HMRC reserve the right to undertake criminal investigations, it is their policy to deal with fraud by use of cost-effective civil fraud investigations. This applies to multinational enterprises (MNEs) as it does to other types of organisations and taxpayers.
In order to address tax risks which particularly relate to MNEs, HM Revenue & Customs (HMRC) have over 450 employees working on international issues including transfer pricing, diverted profits tax, controlled foreign companies and cross border debt. This continuing programme of investigations into potential tax avoidance, and sometimes tax evasion, by MNEs has helped secure around £6 billion from MNEs between April 2015 when Diverted Profits Tax was introduced and March 2020.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether further financial support will be provided to businesses in response to the postponement of step four of the easing of lockdown restrictions to 19 July 2021.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK.
The Government put in place an economic package of support totalling £352 billion through the furlough and self-employed income support schemes, support for businesses through grants and loans, business rates and VAT relief.
At Budget the Government deliberately went long and erred on the side of generosity – specifically to accommodate any short delay to the roadmap. Most of the Government’s Covid support schemes do not end until September or after, in order to provide continuity and certainty for businesses and families.
The Recovery Loan Scheme (RLS) announced at Budget 2021 ensures lenders continue to have the confidence to lend, ensuring viable businesses, including small businesses, continue to have access to Government-backed finance needed throughout 2021. The scheme launched on 6 April 2021, following the closure of the emergency schemes to new loan applications on 31 March 2021, and will run until 31 December 2021. The scheme operates UK-wide, providing an 80% guarantee to lenders for term loans, overdrafts, and invoice and asset finance.
At Budget, it was also announced that local authorities in England will receive a top-up worth a total of £425m to the Additional Restrictions Grant (ARG) fund. This, combined with the £1.6 billion previously allocated, means local authorities will have received over £2bn of discretionary grant funding to support businesses which are not eligible for Restart Grants but which are nonetheless experiencing a severe impact on their business due to public health restrictions. Nearly half of the £2bn is still with local authorities and yet to be allocated.
The Coronavirus Job Retention Scheme (CJRS) was introduced to help employers whose operations have been severely affected by coronavirus to retain their employees and protect the UK economy. All businesses across the UK can access the scheme, with employees receiving 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. At Budget the government extended the CJRS until the end of September 2021, to support businesses and employees through the next stage of the pandemic. The economy now is in a stronger position than it was last autumn, when businesses also contributed up to 20 per cent of wage costs.
In line with the extension to the CJRS, the government announced at Budget 2021 that the Self-Employment Income Support Scheme (SEISS) will continue until September, with a fourth and a final fifth grant. This provides certainty to business as the economy reopens and means the SEISS will continue to be one of the most generous schemes for the self-employed in the world.
As restrictions have been lifted, it is right that we ask employers to contribute more to strike the balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring incentives are in place to get people back to work.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure correspondence sent to his Department is responded to within 20 working days.
Answered by Kemi Badenoch - Leader of HM Official Opposition
We recognise the great importance of the effective and timely handling of correspondence.
Since the onset of the Covid-19 pandemic, HM Treasury has brought in additional staff to its central correspondence team and ensured its correspondence processes are as efficient as possible so Members receive timely, accurate and informative replies to their queries.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support his Department has allocated to (a) NHS and (b) public sector staff who have been asked to shield during the covid-19 outbreak.
Answered by Steve Barclay
Where individuals have been advised to shield, guidance available on gov.uk should be followed wherever possible. Employers are expected to support staff to safely shield.
Those working for fully funded public sector organisations, including those that need to shield, should be paid as normal out of existing budgets.
Arrangements should have been made to facilitate working from home wherever possible, and reprioritisation and redeployment should be considered to minimise issues with service delivery.
In public sector organisations not fully funded by public grants, where working from home has not been possible, shielding staff were eligible for furlough, and the scheme continues to support them. In all instances, CJRS claims should remain proportionate to the impact on revenue disruption, and those that need to shield should be furloughed before other staff. It should be noted that from 1 July, employees can only be furloughed if they have completed the minimum 3-week furlough period between 1 March and 30 June.
Similarly, guidance issued by NHS England states that staff will continue to receive full pay for any period in which they are required to self-isolate as a result of public health advice.
The Chancellor has been clear that the NHS will receive as much funding as needed to manage the Covid-19 outbreak, with £31.9 billion of support now approved for health and care services.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with representatives of (a) banks and (b) other lenders on extending payment holidays for loans in line with the term of the Coronavirus Job Retention Scheme during the covid-19 outbreak.
Answered by John Glen
In April, the Financial Conduct Authority (FCA) announced a series of measures intended to provide temporary support to consumers that have been affected by the coronavirus outbreak, including a three-month payment holiday on personal loans. Ministers recognise the important role payment holidays play in supporting people through this period and have engaged with lenders throughout. The government will continue to work closely with the FCA and industry on the next steps for payment holidays.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Coronavirus Job Retention Scheme rules allow (a) agencies, (b) the BBC and (c) other quasi non-governmental organisations to furlough their staff.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Any entity with a UK payroll can apply for the Coronavirus Job Retention Scheme (CJRS), including businesses, charities, recruitment agencies and public authorities, providing they have a UK bank account, have enrolled for PAYE online, and have created and started a PAYE payroll scheme on or before 19 March 2020.
As the guidance on the CJRS on GOV.UK sets out, the Government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak.
Where employers receive public funding for staff costs, and that funding is continuing, the Government expects employers to use that money to pay staff in the usual fashion; and not to furlough them.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support the Government is providing to people who began employment before 19 March 2020 but were only added to their employers' payroll after the Coronavirus Job Retention Scheme's cut-off date.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Furloughed employees must have been on their employer’s PAYE payroll and HMRC must have received an RTI (Real Time Information) submission notifying payment in respect of that employee on or before 19 March 2020. The use of RTI allows HMRC to verify claims in the most efficient and timely way, ensuring payments can be made quickly while reducing the risk of fraud. Without the use of RTI returns it would be difficult to verify claims without significant additional checks, which would delay payment for genuine claims.
The Government is also supporting people on low incomes who need to rely on the welfare system through a significant package of temporary measures. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants. These changes will benefit all new and existing claimants. Anyone can check their eligibility and apply for Universal Credit by visiting: https://www.gov.uk/universal-credit.