Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that the rise in employer National Insurance contributions does not apply to hospices.
Answered by James Murray - Exchequer Secretary (HM Treasury)
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. The Government will support local authority services through a real terms increase in core local government spending power of around 3.2%, including at least £600 million of new grant funding to support social care.
The government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. Our tax regime for charities, including exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
The Budget will provide support for government departments and other public sector employers for additional Employer NICs costs only. Private sector firms or charities including hospices or social care providers that are contracted by central or local Government will not be exempt from these changes. General Practitioners are independent contractors and therefore will not be exempt from these changes.
This is consistent with the approach to previous Employer NICs changes, as was the case with the previous Government’s Health and Social Care Levy.
DHSC will confirm funding for General Practice for 25/26 as part of the usual GP contract process later in the year, including through consultation with the sector.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that the rise in employer National Insurance contributions does not apply to general practices.
Answered by James Murray - Exchequer Secretary (HM Treasury)
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. The Government will support local authority services through a real terms increase in core local government spending power of around 3.2%, including at least £600 million of new grant funding to support social care.
The government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. Our tax regime for charities, including exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
The Budget will provide support for government departments and other public sector employers for additional Employer NICs costs only. Private sector firms or charities including hospices or social care providers that are contracted by central or local Government will not be exempt from these changes. General Practitioners are independent contractors and therefore will not be exempt from these changes.
This is consistent with the approach to previous Employer NICs changes, as was the case with the previous Government’s Health and Social Care Levy.
DHSC will confirm funding for General Practice for 25/26 as part of the usual GP contract process later in the year, including through consultation with the sector.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his oral contribution of 22 November 2023, Official Report column 349, what the evidential basis is for the statement that the VAT Retail Export Scheme cost around £2.5 billion a year; and if he will publish the methodology underpinning this costing.
Answered by Nigel Huddleston
The Growth Plan, published in 2022 (https://www.gov.uk/government/topical-events/the-growth-plan), indicated that introducing a worldwide scheme would come at a fiscal cost of around £2 billion each year. This figure consists of the cost from EU and non-EU visitors and is based on the same methodology as costings of the abolition of VAT RES and the associated airside scheme published in 2020 (https://assets.publishing.service.gov.uk/media/5fbd2087d3bf7f5735e29b41/Policy_costings_2020_final.pdf). Updating that figure with the latest economic determinants suggests the cost would be in the region of £2.5bn.Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.87 of the Autumn Statement 2023, CP 977, published on 22 November 2023, in what form his Department prefers to receive (a) industry representations and (b) broader data on the VAT Retail Export Scheme.
Answered by Nigel Huddleston
The government recognises a range of qualitative and quantitative data will be relevant for considering the VAT Retail Export Scheme and is grateful for all industry submissions. The government is continuing to accept representations and considering this new information carefully alongside broader data.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.87 of the Autumn Statement 2023, CP 977, published on 22 November 2023, until what date his Department will continue to accept (a) industry representations and (b) broader data on the VAT Retail Export Scheme.
Answered by Nigel Huddleston
The Government takes an ongoing interest in the VAT Retail Export Scheme and continues to accept industry representations. The Government has not set a deadline by which submissions must be received and HM Treasury continues to consider all evidence submitted by stakeholders.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made with Cabinet colleagues of the impact of the removal of the VAT Retail Export Scheme on the arts and culture sectors.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor has been clear that being responsible with the public finances is a priority. Government analysis done in 2022, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of around £2 billion each year.
The Government engaged with varied stakeholders and produced analysis on the cost of VAT-free shopping before withdrawing the previous scheme, and the OBR’s assessment of the previous VAT Retail Export Scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact of the removal of the VAT Retail Export Scheme on the economy.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor has been clear that being responsible with the public finances is a priority. Government analysis done in 2022, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of around £2 billion each year.
The Government engaged with varied stakeholders and produced analysis on the cost of VAT-free shopping before withdrawing the previous scheme, and the OBR’s assessment of the previous VAT Retail Export Scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of developing mitigations to help support businesses in the context of the removal of the VAT-free shopping scheme and commitments made in the Tourism Recovery Plan Update.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor has been clear that being responsible with the public finances is a priority. Government analysis done in 2022, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of around £2 billion each year.
The Government engaged with varied stakeholders and produced analysis on the cost of VAT-free shopping before withdrawing the previous scheme, and the OBR’s assessment of the previous VAT Retail Export Scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of removing the VAT retail export scheme on jobs in the (a) retail, (b) hospitality and (c) tourism sectors.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor has been clear that being responsible with the public finances is a priority. Government analysis done in 2022, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of around £2 billion each year.
The Government engaged with varied stakeholders and produced analysis on the cost of VAT-free shopping before withdrawing the previous scheme, and the OBR’s assessment of the previous VAT Retail Export Scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.
Asked by: Geoffrey Clifton-Brown (Conservative - North Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the impact of the removal of the VAT Retail Export Scheme on tourism destinations across the UK.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Chancellor has been clear that being responsible with the public finances is a priority. Government analysis done in 2022, which took increased tourist spending into account, found that introducing worldwide VAT-free shopping would come at a fiscal cost of around £2 billion each year.
The Government engaged with varied stakeholders and produced analysis on the cost of VAT-free shopping before withdrawing the previous scheme, and the OBR’s assessment of the previous VAT Retail Export Scheme showed that its withdrawal would have a limited behavioural effect on decisions to visit, or spend, in the UK.