Asked by: Duncan Baker (Conservative - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the briefing note published by the Institute for Fiscal Studies on 31 March 2020, and its finding that public spending per person in Scotland is over 30 per cent higher than equivalent English funding, if he will review the Barnett formula to take account of (a) recent trends in the level of Scotland’s population growth and (b) the cost of living in that country.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government sets out funding arrangements for the Devolved Administrations in the Statement of Funding Policy (SFP), which was most recently updated at the 2020 Spending Review and is kept under review. The 2020 SFP states that the Barnett formula continues to perform a key part of the arrangements for pooling and sharing risks and resources across the UK. This means that a downturn in one area can be supported by other areas, rather than being dependent on local economic conditions – and a windfall can be shared with other areas. It ensures the devolved administrations receive a population share of changes in relevant funding consistent with the wider principles set out in the SFP.
Asked by: Duncan Baker (Conservative - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make a root-and-branch assessment of the implications of the business models of large internet companies for his policies on state aid and tax avoidance.
Answered by Jesse Norman
Ensuring an effective solution to the challenges related to the taxation of the digital economy is a priority for the Government. In April 2020, the Government introduced a Digital Services Tax which ensures digital businesses pay UK tax that reflects the value they derive from UK users. The Government is also strongly supportive of OECD negotiations which seek to come to a global consensus agreement on the taxation of the digital economy.
Regarding subsidy control, following the end of the transition period, the UK also has the freedom to design a new domestic regime. The Secretary of State for Business, Energy and Industrial Strategy recently published a consultation seeking views on the approach the Government should take.