Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with representatives in the arts sector on the continuation of the (a) Coronavirus Job Retention Scheme and (b) Self-Employment Income Support Scheme for businesses that are unable to re-open as a result of Government guidance on social distancing during the covid-19 outbreak.
Answered by Jesse Norman
During this difficult time the Treasury is working intensively with employers, delivery partners, industry groups and other Government departments to understand the long-term effects of social distancing across all key areas of the economy. For example, on 11 June the Chancellor attended a roundtable with TUC and other unions, including Prospect and Equity.
The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on businesses and sectors like Arts and Creative Industries.
That is why the Chancellor introduced the Coronavirus Job Retention Scheme (CJRS), and the Self-Employment Income Support Scheme (SEISS).
On 12 May, the Government announced a major extension to the CJRS which will continue to the end of October, including more flexibility and employer contributions from August as people return to work. On 29 May, the Chancellor announced an extension to the SEISS, which continues to be one of the most generous self-employed Covid-19 support schemes in the world as the economy reopens. This extension means that eligible individuals whose businesses are adversely affected by Covid-19 will be able to claim a second and final grant when the scheme reopens for applications in August. Decisions on Government schemes are based on all available evidence, including the latest public health guidance.
The Treasury will continue to monitor the impact of Government support with regard to supporting public services, businesses, individuals, and sectors such as arts and creative industries, and welcome views from representatives.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available for providers of agricultural and country shows during the covid-19 outbreak; and what support is available for mobile providers of those shows who do not have fixed property.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including almost £300 billion of guarantees – equivalent to 15% of UK GDP. Where they have business premises, agro-event hire companies may benefit from one of the grants schemes announced on 17 March:
Agro-event hire companies without premises, along with other businesses, may benefit from a range of other support measures. The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible and how to apply - https://www.gov.uk/business-coronavirus-support-finder.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing zero-rated VAT on ticket income for theatres and music venues.
Answered by Jesse Norman
VAT is an important source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence, raising £130 billion in 2019/2020.
Given this context, while all taxes are kept under review, there are currently no plans to apply a zero-rate of VAT on ticket income for theatres and music venues.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of allowing postdoctoral researchers in receipt of URKI grants to be furloughed when their research involving feasibility studies has had to be paused as a result of their needing to collect data from a medical setting.
Answered by Kemi Badenoch - President of the Board of Trade
The Coronavirus Job Retention Scheme (CJRS) is available for researchers who meet the eligibility criteria (as set out in HMRC and DfE guidance for Higher Education Institutions). This includes research staff directly supported by public grants where they are not able to conduct research due to non-pharmaceutical interventions.
Staff costs for that period may not be claimed from the public research funder. The CJRS is not available for researchers who are not on the PAYE payroll.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to extend the furlough scheme so that workers who usually receive tips receive 80 per cent of their monthly net tip earnings averages over the last three years.
Answered by Jesse Norman
The objective of the Coronavirus Job Retention Scheme is to enable employers to continue to keep people in employment. To achieve this, the grants compensate employers for the payments that they are contractually obliged to make, in order to avoid the need for redundancies. Covering discretionary payments would go beyond the objectives of the scheme. Full guidance on how to calculate 80% of wages can be found at: www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme
For some employees, the pay in scope for the grant will be less than the overall sum they usually receive. The Government is also supporting those on low incomes who need to rely on the welfare system through a significant package of temporary welfare measures. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion 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 www.gov.uk/universal-credit.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government's Self-employment Income Support Scheme, if he will take steps to ensure that a loss of earnings for self-employed women as a result of receiving maternity allowance is taken into account when calculating average profits from their tax returns over the last three years.
Answered by Jesse Norman
The new Self-Employment Income Support Scheme (SEISS) will help those with lost trading profits due to COVID-19. It means the UK will have one of the most generous self-employed COVID-19 support schemes in the world.
The new scheme will allow eligible individuals to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for 3 months. Self-employed individuals, including members of partnerships, are eligible if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade and have lost trading/partnership trading profits due to COVID-19.
Taking maternity leave, paternity leave, or sick leave does not mean that the trade has ceased and therefore should not affect a person’s eligibility for the SEISS as long as the individual intends to return to the trade after the period of leave.
To qualify for the SEISS, an individual’s self-employed trading profits must be less than £50,000, with more than half of their income from self-employment. Delivering a scheme for the self-employed is a very difficult operational challenge, particularly in the time available. There is no way for HM Revenue & Customs to know the reasons why an individual’s profits may have dropped in earlier years from Self Assessment returns.
However, to help those with volatile income in 2018-19 for whatever reason, an individual is eligible for the SEISS if their trading profits are no more than £50,000 and at least half of their total income, for either the tax year 2018-19 or the average of the tax years 2016-17, 2017-18, and 2018-19. If eligible, they will receive a taxable grant based on their average trading profit over the three tax years, including in years where their trading profits were less than half their total income.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether workers who have been advised to work from home during the covid-19 outbreak are eligible to claim tax relief for (a) heating and lighting the room they work in and (b) the cost of business telephone calls.
Answered by Jesse Norman
Employees who have been advised to work from home during the COVID-19 outbreak are eligible to claim tax relief for heating and lighting the room that they work in, and for the costs of business telephone calls. They can claim a fixed amount of £4 per week up to 5 April 2020, then £6 per week thereafter. This increase was announced at Budget. Alternatively, employees can claim relief on the actual amounts incurred, subject to being able to provide evidence, such as phone bills.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) a financial assistance package for early-stage R&D companies in the (i) life sciences and (ii) other sectors that includes rapidly available grants for loss-making companies and (b) increasing the level of R&D tax-credits including in relation to the percentage of surrenderable loss repayable in cash during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government is committed to supporting innovative businesses to grow, as part of the strategy to increase economy-wide investment in R&D to 2.4% of GDP by 2027.
At the 2020 Budget, government announced it would increase public investment in R&D to £22bn by 2024-25. Detailed allocations of this funding will be set out in due course. Budget 2020 also announced the R&D Expenditure Credit rate would be increased to 13%, providing an additional £1bn over the next 5 years.
The government offers two R&D tax relief schemes which are internationally competitive. The government keeps all tax reliefs under review to ensure they remain well-targeted, and will continue to monitor whether further support for businesses is required through the tax system.
In response to the Covid-19 outbreak, the government has announced a significant package of financial support for businesses and employees. Further details of this package are available at: www.businesssupport.gov.uk
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made of the potential merits of an independent inquiry into the conduct of the FCA prior to the collapse of Lendy.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has made no such assessment at this time. The operationally independent Financial Conduct Authority has an ongoing investigation into the circumstances that led to the administration of Lendy, and it would be inappropriate for the Government to pre-empt its findings.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of imposing taxes on polluting goods to tackle climate change.
Answered by Robert Jenrick
The Government has legislated to amend its long-term greenhouse gas emissions target to reach net zero by 2050.
The Government has a number of policies in place to tax polluting goods in order to tackle climate change. These include the Carbon Price Support rate, a tax on fossil fuels used in power generation, and the Climate Change Levy, a tax on businesses’ consumption of gas, electricity and solid fuels.