Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of offering the same terms to be given to those facing the Loan Charge to those who have previously settled with HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.
Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of people who will settle their disguised remuneration liabilities as a result of the McCann Review into Loan Charge settlement terms.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.
Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the the value for money of the Loan Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government commissioned an independent review of the loan charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the loan charge.
The Government accepted the review’s conclusion that the loan charge was an extraordinary piece of Government policy which necessitated an exceptional response, and is now legislating a new settlement opportunity that will assist those who have not yet settled to do so.
As a result, most individuals could see reductions of at least 50% in their outstanding loan charge liabilities, and an estimated 30% of individuals could have these liabilities written off entirely. To encourage more people to settle, the Government will write off the first £5,000 of liabilities in addition to the proposals put forward by Ray McCann.
The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.
Tax avoidance deprives the Exchequer of funds needed to deliver vital public services and it is right that resources are targeted to stop this. There are no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of applying VAT to private hire journeys outside London on the private hire industry.
Answered by James Murray - Chief Secretary to the Treasury
Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to VAT. The Government continues to take the issue of VAT treatment of private hire vehicle services seriously and recognises the importance of clarity to the sector. It is right, however, that decisions on tax policy are taken at fiscal events in the context of overall public finances. The Government will therefore publish a response to the consultation soon.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what her Department's planned timetable is for publishing its response to the consultation entitled VAT Treatment of Private Hire Vehicles, which closed on 8 August 2024.
Answered by James Murray - Chief Secretary to the Treasury
Private hire vehicle services provided by VAT-registered businesses are, and always have been, subject to VAT. The Government continues to take the issue of VAT treatment of private hire vehicle services seriously and recognises the importance of clarity to the sector. It is right, however, that decisions on tax policy are taken at fiscal events in the context of overall public finances. The Government will therefore publish a response to the consultation soon.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to allow GP practices to claim Employment Allowance.
Answered by James Murray - Chief Secretary to the Treasury
The government has not changed the eligibility rules on the Employment Allowance beyond removing the £100k eligibility threshold, so that business size does not dictate whether an employer can benefit from the Employment Allowance.
All the remaining eligibility criteria remain unchanged, including the exclusion of businesses whose work is wholly or mainly public in nature. The eligibility of a specific sector or organisation will depend on the make-up of an individual business's work, and organisations are encouraged to consult HMRC’s detailed guidance.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to exempt GPs who provide more than 90% of their services to the NHS from the increase in employers’ National Insurance contributions.
Answered by James Murray - Chief Secretary to the Treasury
The Government will provide support for departments and other public sector employers for additional employer National Insurance Contributions, i.e. central government, public corporations and local government. General Practitioners are independent contractors and therefore will not be exempt from these changes.
The Government has taken tough decisions to fix the foundations so that increased funding for the NHS in England could be announced at the Budget. Resource spending for the Department of Health and Social Care is set to increase by £22.6 billion in 2025-26 compared to 2023-24 outturn, providing a real-terms growth rate of 4% for the NHS, the largest since before 2010 excluding Covid-19 years.
Every year, the Government consults with the general practice sector about what services they provide, and about what money they are entitled to in return under their contract. As in previous years, this will be dealt with as part of that process.
The Government has announced a proposed £889m uplift for general practice in 2025-26, the largest uplift to GP funding since 2019-20. The Department of Health and Social Care have started consulting with the General Practitioners Committee in England of the British Medical Association (BMA) on the 2025-26 GP contract, and will consider a range of proposed policy changes. These will be announced in the usual way following the close of the consultation later this year.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to incentivise companies to remain listed in London.
Answered by Tulip Siddiq
The Government is committed to reinvigorating our capital markets to ensure they deliver for investors and firms to support global and UK growth.
The UK is Europe’s leading hub for investment, and the Government is taking forward reforms to build on these strong foundations by boosting the competitiveness of UK markets and optimising the capital raising process for large and small companies.
This includes a once in a generation reform to our listings rulebook which will revolutionise our markets, directly align us with leading international counterparts and providing greater flexibility to firms and founders raising capital on UK markets.
The Chancellor has also announced a landmark review into pension fund investments which will explicitly consider the role of pension funds in capital and financial markets to boost returns and UK growth.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help increase (a) investment and (b) listings for small and medium-sized businesses.
Answered by Tulip Siddiq
The Government is committed to reinvigorating our capital markets to ensure they deliver for investors and firms to support global and UK growth.
The UK is Europe’s leading hub for investment, and the Government is taking forward reforms to build on these strong foundations by boosting the competitiveness of UK markets and optimising the capital raising process for large and small companies.
This includes a once in a generation reform to our listings rulebook which will revolutionise our markets, directly align us with leading international counterparts and providing greater flexibility to firms and founders raising capital on UK markets.
The Chancellor has also announced a landmark review into pension fund investments which will explicitly consider the role of pension funds in capital and financial markets to boost returns and UK growth.
Asked by: Gareth Bacon (Conservative - Orpington)
Question to the HM Treasury:
What recent assessment she has made of the impact of levels of borrowing on public finances.
Answered by Tulip Siddiq
Borrowing for the first four months of the financial year was £51.4bn, £4.7bn higher than the OBR forecast in March. This adds to the challenging fiscal position the government has inherited, with debt at its highest level since the 1960s. The Chancellor has commissioned a full economic and fiscal forecast from the Office for Budget Responsibility for the Budget on 30th October.