Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information his Department holds on the number of SMEs in the defence sector that have been denied (a) banking facilities and (b) other forms of finance because of environmental, social and governance policies since 2020.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government recognises the vital role small and medium-sized enterprises play in fuelling economic growth, and it is important they can access the banking services they need. Last year the Chancellor asked the Financial Conduct Authority (FCA) to collect evidence to help us understand where account closures and refusals are happening and why. The FCA published their initial findings on 19 September, and are doing further work with firms to verify the data and to better understand the reasons behind account refusals. In addition, HM Treasury is continuing to engage with industry to understand any existing or emerging issues regarding bank account access for businesses.
The Government welcomes steps that the financial services sector is taking to improve understanding of how firms can access financial services. In December, guidance specifically aimed at businesses operating in the defence and security sectors was published by UK Finance, the trade association for the banking and finance industry, and ADS, the trade association for the UK’s aerospace, defence, security and space sectors. This work was supported by the Department for Business and Trade.
The Government has been clear that it does not support the exclusion of defence companies from access to debt and equity capital on the basis of Environmental, Social and Governance (ESG) considerations. This was made evident in a Written Ministerial Statement made by the Secretary of State for Defence, in conjunction with HM Treasury, that stated “the important values within ESG should not undermine capabilities developed to help us preserve peace and security, without which sustaining those values would not be possible”. In addition, HM Treasury has recently consulted on a potential regulatory framework for ESG ratings providers which would aim to improve transparency and promote good conduct, which will help address some of the issues which defence companies have raised.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral answer of 19 December 2023 on Reducing Taxes, Official Report, Column 1220, when he plans to write to the hon. Member for Halton.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Chancellor responded to the honourable Member on 23 January 2024.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has received from SMEs that have not received business rates support to help mitigate the effects of the covid-19 outbreak; and when he plans to make an announcement on future support for those businesses.
Answered by Jesse Norman
The Government has put in place a substantial package of support for businesses worth over £280 billion, which includes loans, tax deferrals, and general and sector-specific grants. It continues to engage with businesses and representative groups, including SMEs, to ensure that the support provided is right for the affected areas and for the economy as a whole.
On 5 January the Government announced one-off grants for businesses of up to £9,000. The Government will continue to ensure businesses are supported in the coming months, as measures to control the virus change, and it will keep all impacts and policies under review. The Chancellor will consider any further decisions on taxation as part of the Budget process.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take additional fiscal steps beyond the (a) Green Recovery Challenge Fund and (b) Climate for Nature Fund to ensure that (i) nature and (ii) nature based solutions form part of the UK’s green recovery from the covid-19 pandemic.
Answered by Kemi Badenoch - President of the Board of Trade
The Government remains committed to pursuing a green recovery, with concern for our environment at its heart. The £40m Green Recovery Challenge Fund opened to applications in September and will provide funding for projects across England to restore nature while creating and safeguarding up to 5,000 jobs.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the financial support required to help ensure that Science and Discovery Centres do not close permanently as a result of the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Chancellor receives frequent updates on the economy to ensure that he is sighted on developments across all sectors. These include science and discovery centres.
Science and Innovation is a priority for this government which is why in June we announced a support package for universities with a range of measures to protect our excellent institutions from the impact of coronavirus.
We will continue to monitor the impact of the restrictions necessary to curb the spread of Covid-19 on businesses and the economy and the need for further support.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he make an assessment of the potential merits of extending (a) VAT deferral and (b) the Time to Pay scheme for the coach industry to help ensure that no coaches are repossessed during winter 2020-21.
Answered by Jesse Norman
The Government has put in place an unprecedented package of support for businesses and individuals affected by COVID-19. This includes the deferment of VAT and Self-Assessment payments for specified periods, with interest on these deferred payments waived. The VAT deferral ended at the end of June as planned, and payments are now due as normal.
HMRC’s Time to Pay scheme continues to be available to any taxpayer in temporary financial distress and with outstanding tax liabilities, including those in the coach industry. Time to Pay agreements are tailored to each taxpayer’s circumstances and can include deferment of tax payments and an agreed time period to repay. They can cover any tax liability including VAT.
Any taxpayer with an existing Time to Pay arrangement that finds their circumstances have changed as a result of COVID-19 should contact HMRC to discuss their situation. HMRC’s dedicated COVID-19 helpline can be reached on 0800 024 1222.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide fiscal support to the live events industry to help safeguard jobs in that sector.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the disruption that necessary actions to combat Covid-19 are having on sectors such as the live events industry. The Government has announced unprecedented support for individuals and businesses during the pandemic. This includes Business Interruption Loans and Bounce-Back Loans and a yearlong business rates holiday for all eligible businesses in the retail, hospitality and leisure sectors. The Government has further announced a £1.57 billion support package for eligible cultural and heritage organisations including theatres and live music venues, and a temporary reduction in VAT to support businesses and jobs in the hospitality and tourism industry, for example by reducing the cost of admission to attractions and events such as concerts, theatres, fairs and exhibitions.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with mortgage providers on preventing the repossession of family homes of small business owners whose business has failed due to the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has been working closely with mortgage lenders throughout this period in order to provide as much certainty as possible to homeowners. In March we announced the availability of a 3-month mortgage payment deferral to help those struggling with the financial impact of Covid-19. Alongside this, FCA guidance from 2 June provided homeowners with the option of a second 3-month deferral, as well as confirming the lender ban on repossessions until 31 October 2020 meaning no homeowner will face repossession through this uncertain time.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that the coach travel sector is treated as part of the leisure sector and able to access support available to leisure businesses during the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government has delivered on its promise to stand by businesses and workers throughout the pandemic and has provided one of the most comprehensive and generous packages of support globally. This support has included billions of pounds for businesses through loans and grants, support for millions of jobs through the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS.
Coach companies, along with other businesses, continue to have access to a range of support measures including, but not limited to:
• A Discretionary Grant Fund for Local Authorities in England
•The Coronavirus Business Interruption Loan Scheme (CBILS)
• The Bounce Back Loan Scheme (BBL) for small and micro enterprises
• VAT deferral for up to 12 months (for the period 20 March – 30 June 2020)
• The Time To Pay scheme, through which businesses in financial distress, and with outstanding tax liabilities, can receive support with their tax affairs
• Protection for commercial leaseholders against automatic forfeiture for non-payment until September 30, 2020.
The Coronavirus Job Retention Scheme opened to all employers on 20th April.
Asked by: Derek Twigg (Labour - Halton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a scheme similar to the Eat Out to Help Out scheme for concerts, festivals and other live events as covid-19 lockdown restrictions are eased.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on sectors like events and the live performance industry.
That is why the Chancellor has already announced unprecedented support for individuals and businesses, to protect against the current economic emergency. This includes a £1.57 billion support package for eligible cultural and heritage organisations (including the performing arts and live music venues) and a temporary reduction in VAT, designed to support businesses and jobs in the tourism and hospitality industry (including admission to shows, theatres, concerts, circuses and similar events).
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.
We will continue to monitor the impact of government support on public services, businesses, individuals and sectors as we respond to this pandemic, and keep all policies under review.