Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for her Department's policies of the Dasgupta Review, published on 2 February 2021.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government agrees with the central conclusion of the Dasgupta Review that nature, and the biodiversity that underpins it, sustains our economies, livelihoods and wellbeing. It is therefore committed to integrating nature into economic and financial decision-making, and the institutions and systems that underpin it.
As set out at the Budget, the Government is investing in the natural environment, confirming £5 billion over two years to support the transition to a more productive and environmentally sustainable agricultural sector in England, and at least £400m for tree planting and restoration to protect soils, rivers and biodiversity.
The Treasury continues to explore ways to strengthen processes for assessing the climate and environmental impacts of fiscal decisions and improve the Green Book in line with emerging evidence and best practice, building on the extensive guidance already provided for evaluating and monetising natural capital impacts.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of changes to vehicle tax for electric and low emissions vehicles from 1 April 2025 on the number of purchases of those vehicles.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
From April 2025, electric and hybrid cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles. The anticipated impact is summarised in the Policy Costings document that was published alongside Autumn Statement 2022, and can be found here: https://assets.publishing.service.gov.uk/media/6375caf8e90e072848403c47/Autumn_Statement_2022_Policy_Costings_.pdf (p. 24).
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take steps to financially support short term holiday let operators when the Furnished Holiday Let tax scheme is ended.
Answered by Nigel Huddleston
The Government has announced that it will abolish the Furnished Holiday Lettings (FHL) tax regime, equalising the tax treatment of landlords with short-term holiday lets and those with standard residential properties. This will take effect from April 2025, giving FHL landlords time to adjust to the change.
Following abolition, individual FHL landlords will have access to the same tax reliefs as other residential landlords. These include restricted finance cost relief and replacement of domestic items relief.
The Government keeps all tax policy under review and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will expand the eligibility criteria for the £300 cost of living payments to include households in receipt of contribution-based or new style Employment Support Allowance.
Answered by Laura Trott - Shadow Secretary of State for Education
Disability cost of living payments are a matter for DWP.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of providing an additional Disability Cost of Living Payment of £150 to people in receipt non means-tested benefits.
Answered by Laura Trott - Shadow Secretary of State for Education
Disability cost of living payments are a matter for DWP.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of reinstating the freeze in alcohol duty for draught beer and cider.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Government keeps the duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.
The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.
The next steps of the Alcohol Duty Review announced in the Growth Plan will continue as planned. This includes the introduction of the new lower duty rate for draught beer and cider due to be implemented from 1 August 2023.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential merits of reducing the VAT charged on food and drink served in pubs.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor regularly engages with the Secretary of State for Business, Energy and Industrial Strategy on a range of issues.
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to ease affected businesses back to the standard rate. The relief ended on 31 March 2022.
The VAT reduced rate for the hospitality sector was a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It was appropriate that as restrictions were lifted and demand for goods and services in these sectors increased, the temporary tax reliefs were first reduced and then removed in order to rebuild and strengthen the public finances.
VAT is the UK’s third largest tax forecast to raise £157 billion in 2022/23 helping to fund key spending priorities such as important public services, including the NHS and policing. In addition, this request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.
While there are currently no plans to reduce the rate of VAT for the hospitality industry, the Government keeps all taxes under review.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of reforming of the business rates system for pubs.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
At Autumn Statement 2022, the Government announced a package of support worth £13.6 billion over the next five years. Together with the revaluation, this package ensures bills will more accurately reflect current market values whilst protecting businesses from large bill increases.
The retail, hospitality and leisure sectors will benefit from over £2 billion in support in 2023-24, with eligible properties receiving 75% off their bills, up to a cap of £110,000 per business. The Government is also delivering significant reform with an Exchequer funded Transitional Relief scheme worth £1.6 billion over the next three years. This will protect an estimated 700,000 properties from large bill increases and will also enable around 300,000 ratepayers with decreasing rateable values to benefit from a full fall in their bill on 1 April 2023.
Asked by: Fabian Hamilton (Labour - Leeds North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that additional tax payments as a result of pension growth are not disproportionately impacting NHS staff.
Answered by Lucy Frazer
The Government is committed to ensuring that hard-working NHS staff do not find themselves reducing their work commitments due to the interaction between their pay, their pension, and the relevant tax regime.
99 per cent of pension savers make annual contributions below £40,000, the level of standard annual allowance which has applied from 2014-15. To ensure that defined benefit scheme members are not unduly affected by the annual allowance (for example if their pension rights increase after a promotion), the Government allows up to three years of unused annual allowance to be carried forward. The Government also increased the two thresholds above which the tapered annual allowance applies were each raised by £90,000 in April 2020.
Individuals who breach the annual allowance on tax-relieved pension savings can also use an option called ‘scheme pays’, under which they can require their pension scheme to pay their annual allowance tax charge now (in return for an actuarially fair reduction in their pension), provided that the annual allowance charge is at least £2,000 and they have exceeded the annual allowance of £40,000. In England and Wales, the NHS Pension Scheme goes further, allowing scheme pays to be used on any annual allowance charges relating to accrual in that scheme.
The reforms to the annual allowance and lifetime allowance made since 2010 are expected to save £6 billion per year, and allow pension savers to build significant retirement savings tax free, while also ensuring that the highest earning pension savers do not receive a disproportionate benefit from pensions tax relief.