Oral Answers to Questions
Debate between Harriett Baldwin and Jesse Norman(4 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Harriett Baldwin (West Worcestershire) (Con)
What comparative assessment he has made of the effectiveness of fiscal support for (a) job retention and (b) incomes during the covid-19 outbreak in the UK and internationally. [907777]
The Financial Secretary to the Treasury (Jesse Norman)
The pandemic has unfolded at different paces in countries around the world, and countries have acted in a way that works best for their respective economies. In this country, the Government have put in place more than £200 billion-worth of support to protect people’s jobs, businesses and incomes, and that is one of the most comprehensive economic responses of its kind anywhere in the world. Our goal remains to continue to protect those livelihoods, those jobs and those businesses while we allow the economy to adapt to the changing circumstances.
Harriett Baldwin
At the beginning of the pandemic, the OECD forecast that unemployment in the UK would rise to 9.1% by the end of this year. It recently revised its forecast down to 5.3%. Can the Minister confirm that the winter jobs plan will continue to provide the right kind of support to help our flexible labour market to adapt to the pandemic?
Jesse Norman
My hon. Friend is absolutely right to highlight the point about the OECD’s forecasts, and also the astonishing flexibility and effectiveness of our labour markets. She will know that the Government continue to adapt their response and, as the Chancellor mentioned a few minutes ago, we will shortly be launching the £2 billion kickstarter scheme alongside the job support scheme. That will be a tremendous boost for the prospects of young people across the country.
Finance Bill (Ninth sitting)
Debate between Harriett Baldwin and Jesse NormanThursday 18th June 2020
(4 years, 5 months ago)
Public Bill CommitteesRead Full debate Finance Act 2020 View all Finance Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 18 June 2020 - (18 Jun 2020)
Jesse Norman
Clause 100 is a technical measure that makes changes to put it beyond doubt that tasks that are being done by an individual officer of Her Majesty’s Revenue and Customs may be carried out by HMRC using a computer or other means. It ensures that the intention of Parliament is appropriately reflected in the legislation and confirms that the rules work as they have been widely understood and applied over many years. No new charges or obligations for taxpayers will result. The changes merely clarify legislation.
If I may explain the context for the introduction of the clause, the Government announced by written ministerial statement on 31 October 2019 that it would legislate retrospectively and prospectively to confirm notices to file tax returns and penalty notices issued by HMRC through automated processes as valid. That long-standing practice has been challenged in the courts on the basis that the legislation states that some tasks are to be carried out by
“an officer of the Board.”
The relevant legislation in the Taxes Management Act 1970 is 50 years old and was designed to support a paper-based manual tax system.
The way in which HMRC administers the tax system has evolved over time, in line with taxpayers’ expectations for a modern and digital system. Decisions made by HMRC officers are often given effect by computer-driven processes, so that HMRC can assess and collect taxes in the most efficient and cost-effective way.
Harriett Baldwin (West Worcestershire) (Con)
As he expatiates on the value of digital technology to tax collection, will my right hon. Friend share with the Committee his thoughts on making tax digital and how the recent opportunity to make furlough payments has shown the value of a digital tax system?
Jesse Norman
This is another small, technical measure. Clause 103 makes changes to ensure that Public Works Loan Board lending is available to local authorities in order to support worthy capital endeavours that benefit their residents. There is a statutory limit on the total amount that may be lent to local government through the PWLB, a limit that is governed by section 4 of the National Loans Act 1968. That Act allows for two future levels of that limit to be specified in advance through primary legislation and activated through secondary legislation.
The legislation would be exercised through HM Treasury. A date to exercise these powers has not been, and would not usually be, set in advance. The Treasury considers this clause to be a high priority because of the central role the PWLB plays in the capital finance system, supporting local authorities to deliver public services and, still more urgently, supporting communities through the pandemic as the need may arise.
The changes made by clause 103 will amend the predetermined legislated figures in the 1968 Act. The limit is currently £95 billion, and the clause resets the two future amounts to £115 billion and £135 billion. Clause 103 thus ensures the continuity of PWLB lending, which is a key stream of funding for local authorities across the country.
Harriett Baldwin
I know that Worcestershire County Council finds the Public Works Loan Board very useful. Can the Minister update the Committee on the interest rate charged on that facility?
Jesse Norman
That is a very helpful question. I cannot update the Committee at the moment, because, as my hon. Friend will know, that is a matter for consideration within the Treasury. However, she has usefully put the issue on the record, and I thank her for doing so.