Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the (a) potential limitations of GDP growth as a measurement of the development of the UK economy and (b) potential merits of using alternative measurements such as the (i) Genuine Progress Indicator, (ii) Green Gross Domestic Product and (iii) Human Development Index.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
GDP measures the total value of all of the goods made, and services provided, during a specific period of time. GDP is important because the higher a country’s GDP is, the more resources are available to people in the country – goods and services, wages and profits. Growing GDP sustainably means the government is better equipped to invest in public services such as the police, NHS and schools.
Whilst it remains one of our most important economic indicators, the Government recognises that GDP has its limitations and should not be seen as an all-encompassing measure of welfare. The ONS produce separate measures of subjective well-being, introduced as part of the 2010 National Well-being Programme, to start measuring our progress as a country, not just by how our economy is growing, but by how our lives are improving. This programme encompasses a broad range of measures including, happiness, health, the environment and personal finance.
The Government has provided the Office for National Statistics (ONS) with an additional £25 million to help implement the recommendations of Sir Charles Bean’s 2016 Review of Economics Statistics, including through an initiative called ‘Beyond GDP’ that aims to address the limitations in GDP by developing broader measures of welfare and activity.
As a result of this work, the UK became one of the first countries to publish natural capital accounts as part of its National Accounts (The Blue Book). The ONS is continuing to develop these accounts and also published human capital estimates for 2004-2018 as part of their wellbeing measures. The Dasgupta Review considers that a broader measure of ‘inclusive wealth’, comprising Natural, human and produced capital, can provide insights into a nation’s sustainable economic progress over time. In response to the recommendations of the Dasgupta review, HM Treasury provided further funding to the ONS to continue improving its natural capital estimates. This will improve their relevance for policy making, and ensure continued consideration of a broader measure of economic activity than just GDP.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment the Government has made of the impact of the cost of living crisis on the finances of families in receipt of maternity pay.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government understands that people across the UK are worried about the cost of living as they spend more on energy bills and essentials.
The Government has acted to bring down the cost of energy, and support all households with their bills this winter, including families in receipt of maternity pay. This includes the Energy Price Guarantee, which limits the unit price for electricity and gas, as well as the £400 discount through the Energy Bills Support Scheme. Furthermore, those in receipt of means tested benefits received a one-off Cost of Living Payment of £650, and additional support was provided for disabled people and pensioners, meaning that millions of the most vulnerable households will have received at least £1,200 of one-off support this year.
The action taken on energy support at the Autumn Statement will continue to protect the most vulnerable in society. The EPG will continue into next year and will be adjusted so that the typical household pays £3000 per annum from April 2023 until April 2024, saving the average household £500. Furthermore, the government will be making additional £900 Cost of Living Payments to households on means-tested benefits; £300 to pensioner households; and £150 to households on disability benefits in 2023-24.
It was also confirmed that Statutory Maternity Pay and Maternity Allowance will be uprated in line with the September rate of inflation in April 2023.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much ministerial severance pay has been (a) paid out by his Department and (b) accepted since 1 June 2022.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Provision of severance payments for Ministers is set out in legislation.
Details of the severance payments made to ministers when leaving office will be published in the HM Treasury Annual Report and Accounts 2022-23.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his to continue business rates relief beyond the 2022-2023 financial year.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government has announced a package of support worth £13.6 billion for businesses 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.
Businesses in the retail, hospitality and leisure sector will receive a tax cut worth over £2 billion in 2023-24. Eligible properties will receive 75% off their business rates bill, up to a cap of £110,000 per business, an increase from the 50% relief last year.
The Government has also committed to freezing the multiplier for a further year, which is a tax cut worth £9.3 billion to businesses over the next 5 years and means all bills are 6% lower, before any reliefs or supplements, than without the freeze.
To protect businesses from large bill increases on 1 April 2023, the Government announced a 3 year Exchequer funded Transitional Relief (TR) scheme worth £1.6 billion. This will support around 700,000 ratepayers in England, as they transition to their new bills. The reformed TR scheme will also allow ratepayers whose rateable values have fallen to benefit from the full reduction in their business rates bills on 1 April by abolishing downwards caps, delivering a key stakeholder ask.
An extended Supporting Small Business (SSB) scheme will provide over £500 million of support over the next three years to businesses losing all or some of their Small Business or Rural Rate Relief, due to the 2023 revaluation, at £50 per month. This is worth five times more than the previous scheme, and will support five times as many properties.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps the Government has taken to support the night-time economy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
In the past, the Government has taken unprecedented action to support the hospitality industry. Autumn Statement delivers further on our support for the sector.
The Retail, Hospitality and Leisure (RHL) Relief has been extended and increased from 50% to 75% in 2023-24 – a relief of up to £110k per business. This means around 230,000 properties in the retail, hospitality and leisure sectors will receive a tax cut worth almost £2.1 billion in 2023-24.
We are freezing the business rates multiplier in 2023-24 instead of increasing in line with inflation. Businesses in the hospitality and retail sectors will also benefit from the Energy Price Guarantee until April 2023. In addition, the April increase to the Employment Allowance from £4,000 to £5,000, means that any businesses with employer NICs bills of £100,000 or less in the previous tax year can claim up to £5,000 off their NICs bill.
All of which means that the Government is exceeding stakeholder expectations for further support for retail and hospitality and to protect businesses such as pubs, cafes, and nightclubs.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to Answer of 7 November 2022 to Question 77439 on Ministry of Defence: Consultants, if he will publish a list of the external management consultants engaged with by his Department.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
HM Treasury’s spend on consultancy is published and available for viewing within the Annual Report and Accounts. The names of all contracts issued for consultancy can be found using the Gov.Uk contracts finder (link included below).
Contract Finder - Contracts Finder - GOV.UK (www.gov.uk)
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of offering payment holidays for any debt owed to the Government, in the context of the cost-of-living crisis.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Cabinet Office’s Government Debt Management Function sets the Government Debt Strategy and the Debt Functional Standard for how debt is managed. These are underpinned by Fairness Principles that provide guidelines for managing debt and supporting people in financial difficulty. The Government has also published a Vulnerability Toolkit that provides front line staff with best-practice tools to identify and support vulnerable individuals.
Government departments continue to work with individuals to support them to manage any debts, including by referring them to free and impartial money and debt advice. Anyone who is concerned about their ability to pay should contact the department they are in debt to so they can review their financial circumstances and discuss the support available.
To support people in problem debt, HM Treasury continues to maintain record levels of funding for free-to-client debt advice in England in 2022-23. In addition to this, the Breathing Space scheme launched in England and Wales last year, offering people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and encouraging them to seek professional debt advice.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the potential cost to the Treasury of his proposed cuts to stamp duty.
Answered by Richard Fuller
On 23 September 2022, the Chancellor announced a permanent cut to Stamp Duty Land Tax (SDLT). The Government has increased the nil-rate threshold for residential SDLT from £125,000 to £250,000 as part of the Growth Plan. The nil-rate threshold for first-time buyers has also been increased from £300,000 to £425,000. The maximum property value for which First Time Buyers Relief can be claimed increased from £500,000 to £625,000.
The Government currently estimate this measure will have the following Exchequer impact:
2022-23: -£795 million
2023-24: -£1,450 million
2024-25: -£1,535 million
2025-26: -£1,595 million
2026-27: -£1,655 million
These figures are set out in Table 4.2 of the Growth Plan 2022, available here: https://www.gov.uk/government/publications/the-growth-plan-2022-documents
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to introduce a freeze on (a) stamp duty holiday and (b) rents to help the cost of living.
Answered by Richard Fuller
On 23 September 2022, the Chancellor announced a permanent cut to Stamp Duty Land Tax (SDLT). The Government has increased the nil-rate threshold for residential SDLT from £125,000 to £250,000 as part of the Growth Plan. The nil-rate threshold for first-time buyers has also been increased from £300,000 to £425,000. The maximum property value for which First Time Buyers Relief can be claimed increased from £500,000 to £625,000. The Government keeps all taxes under review.
The Government does not support the introduction of rent controls in the private rented sector to set the level of rent at the outset of a tenancy.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had the Financial Conduct Authority on the collapse of Blackmore Bond.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury works closely with the FCA to maintain a strong and safe financial system. Treasury Ministers and officials regularly meet with the FCA to discuss a variety of matters.
The FCA does not have power to investigate a firm that is unauthorised and not carrying out regulated activities. Where problems fall outside the FCA’s statutory remit, they assist other agencies and regulators wherever they can. As Blackmore Bond was an unregulated firm, the FCA passed the relevant information to the City of London Police.
In November 2019, the FCA temporarily banned the promotion of high-risk ‘speculative illiquid securities’ to ordinary retail investors. This ban covers the type of mini-bonds sold by Blackmore Bond. This ban was made permanent in January 2021.
In April 2021, the Treasury launched a consultation on proposals for bringing mini-bonds within the scope of regulation. On 1 March 2022 the Treasury set out its intention to include non-transferable securities, including mini-bonds, within the scope of the Prospectus Regime Review. Issuers of mini-bonds would be required to offer their securities via a platform which would ensure appropriate due diligence and disclosure and be regulated by the FCA.