Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of the use of telematic black box electronic recording devices by insurance companies on the cost of car insurance.
Answered by Harriett Baldwin
In general, an insurer will make a decision about the terms on which they will offer cover following an assessment of the risks posed by an individual. Some insurers offer discounts to drivers who choose to use telematics in their cars. This is usually informed by the insurer’s claims experience and other industry-wide statistics. The Government does not intend to intervene in these commercial decisions by insurers as this could damage competition in the market. The respective capabilities of insurers to assess risk is a key element on which they compete. This competition is important and should lead to better products and lower prices for consumers.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential merits of making country-by-country reporting of UK-listed company profits publicly available.
Answered by David Gauke
The UK supports efforts to improve tax transparency. We initiated the international work on country-by-country (CbC) reporting to tax authorities during our G8 Presidency in 2013, calling on the OECD to develop a template for this as part of the BEPS project.
The UK was the first to commit to implementing the OECD model with legislation in Finance Act 2015. The Government believes that there is scope for greater transparency by pressing the case for public CbC reporting on a multilateral basis. As the Chancellor has said, this is something that the UK will seek to promote internationally.
The European Commission has now proposed amendments to the Accounting Directive for public CbC reporting, and we believe these proposals are a step in the right direction towards new international rules for greater public transparency
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to allow the exchange of tax information of UK-listed companies with developing countries.
Answered by David Gauke
The UK supports efforts to improve tax transparency. We initiated international work on country-by-country (CbC) reporting during our G8 Presidency in 2013, calling on the OECD to develop a framework for CbC reporting to tax authorities as part of the Base Erosion and Profit Shifting (BEPS) project. This important initiative will enhance transparency between business and tax authorities, including those of developing countries.
The UK has published regulations on 26 February 2016 implementing the OECD CbC reporting framework.
We have also signed the Multilateral Competent Authority Agreement which allows from the automatic exchange of the OECD CbC reports between relevant tax authorities. All countries are free to enter into international agreements so that they can exchange reports under the Multilateral Convention, bilateral double tax conventions or tax information exchange agreements.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions he has had with his Cabinet colleagues on the effect of tax avoidance and evasion on developing countries as part of his preparations for the forthcoming UK Anti-Corruption Summit.
Answered by David Gauke
Treasury ministers are in regular dialogue with cabinet Colleagues on a range of issues.
The UK has been at the forefront of the G20-OECD Base Erosion and Profit Shifting (BEPS) project to tackle tax avoidance and aggressive tax planning by multinational enterprises. The project represents an unprecedented international effort that involved over 60 countries, including developing countries, working together to better align the taxation of profits with economic activity and value creation. A dedicated work stream was set up to target the issues which developing countries identified as their highest priorities, including unnecessary tax incentives and tools to undertake BEPS-risks assessments.
The BEPS project was completed on 5 October 2015, and the focus is now on implementing the internationally agreed proposals. The UK is chairing a group of over 90 countries who are working together in 2016 to develop the Multilateral Instrument, which will simultaneously update the global network of over 3000 bilateral treaties to implement some of the changes resulting from the BEPS project. The group includes emerging economies and developing countries as well as OECD members. The vice-chairs of the group of representatives from China, Morocco and the Philippines, highlighting the importance of the multilateral instrument to developing countries and their central involvement in its design.
As a result of our G8 Presidency, more than 90 countries have agreed to automatically exchange taxpayer financial account information. These global agreements will provide a step change in the ability of countries to tackle tax evasion as participating countries will be automatically sending and receiving information about the offshore financial accounts of taxpayers.
All countries will be able to benefit from these changes to the international tax system, but some will require additional support if they are to do so. International organisations are therefore producing practical toolkits to help developing countries implement BEPS standards and the Government is funding international organisations to assist developing countries in obtaining technical assistance on issues such as transfer pricing. The Government funds the Global Forum and World Bank to support developing countries in implementing exchange of information systems and last year the Government announced a partnership with the Ghana revenue authority to pilot the new standard on automatic exchange of information. The Government also funds tax capacity building in the vast majority of its priority developing countries bilaterally and multilaterally, as well as through peer-to-peer technical assistance from HMRC.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will take steps to publish aggregate statistics showing the size and origin of assets in UK financial institutions.
Answered by Harriett Baldwin
The Bank of England publishes aggregated data relating to UK Financial Institutions’ balance sheets. Its statistical releases can be found via the following link: http://www.bankofengland.co.uk/statistics/Pages/calendar/default.aspx
Under the Capital Requirements (country-by-country reporting) Regulations 2013 there are reporting obligations on institutions in the United Kingdom within scope of the Capital Requirements Directive 4. The regulations require institutions to publish annually details on a consolidated basis, by country where they have an establishment. These details include: their name, nature of activities and geographical location; number of employees; and their turnover.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department plans to renegotiate tax treaties with developing countries.
Answered by David Gauke
Tax treaties are negotiated by HM Revenue and Customs (HMRC) officials, reporting to Treasury Ministers.
The UK has a large number of tax treaties which includes treaties with developing countries. Some of those treaties require updating and HMRC officials actively seek engagement with developing countries to that end. For example, there are ongoing negotiations with Ghana, prospective negotiations with Nepal and negotiations with Lesotho and Malawi are close to conclusion.
HMRC publishes the programme of tax treaty negotiations and news of signed treaties at: https://www.gov.uk/government/publications/double-taxation-agreements-developments-and-planned-negotiations.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many HM Revenue and Customs jobs in (a) Bradford and (b) West Yorkshire will be lost as a result of the proposed restructuring plan.
Answered by David Gauke
HM Revenue and Customs’ (HMRC) restructuring plans will mean it is even more effective in raising the taxes on which public services depend.
HMRC has around 3,774 Full Time Equivalent (FTE) jobs in the Yorkshire and the Humber Region. The intention to consolidate HMRC operations across Yorkshire and the Humber into a single regional centre in Leeds accommodating between 4,100 and 4,400 FTE, by 2021, is expected to result in an overall increase in jobs in the region.
In offices which will close and are outside reasonable travel distance of Leeds, HMRC employees will have the opportunity to discuss their personal circumstances in one-to-one meetings with their manager. Until then HMRC cannot be certain of the number staff who are unable to move to a Regional Centre.
More details on the number of people relocating from individual offices, including Bradford, Leeds and Shipley, will be known when lines of business have finalised their plans and individuals have had the opportunity to discuss their personal circumstances in one-to-one meetings with their manager.
HMRC will look at redeployment opportunities for people who are unable to move, helping and supporting them to find another role, possibly in other government departments.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions he has had on the apprenticeship levy with (a) businesses, (b) the Secretary of State for Business, Innovation and Skills, (c) the Secretary of State for Education and (d) organisations representing industry.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: http://www.hm-treasury.gov.uk/minister_hospitality.htm.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many families in Bradford East constituency will be affected by plans to limit child tax credits to two children.
Answered by Damian Hinds - Minister of State (Education)
This information is not available.
Information about the number of benefitting families and average entitlement in the Bradford East constituency in the tax year 2013-14 can be found in the publication ‘Personal tax credits: Finalised award statistics – geographical statistics 2013-2014’ here:
The Government is making changes to Child Tax Credit and Universal Credit which will help put welfare spending on a more sustainable path. The Government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society. That means more emphasis on support to hardworking families on low incomes by reducing income tax through increases in the personal allowance and increasing wages, than on topping up low wages through tax credits.
From April 2017, the child element of Child Tax Credit will be limited to two children. This means that families who have a third or subsequent child after April 2017 will not receive additional support for this child. Support provided to families who make a new claim to Universal Credit after this date will also be limited to two children. Equivalent changes will be made in housing benefit.