Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the effect on access to cash in rural areas of bank branch closures during the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the importance of cash to the daily lives of millions of people across the UK, particularly in rural areas.
Throughout the Covid-19 outbreak, the Government has been working closely with industry and regulators to ensure customers continue to have access to essential banking services, including access to cash, while balancing the needs of their customers with the safety and welfare of staff.
Customers can continue to use ATMs or cash machines as normal for cash withdrawals and balance enquiries. However, we would encourage customers, wherever possible, to use online services for their banking and to find the latest information. Bank customers can also use the Post Office for essential banking services as an alternative to a bank branch.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to exempt businesses from paying (a) national insurance, (b) VAT, (c) corporation tax and (d) business rates over the next three months.
Answered by Jesse Norman
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
UK VAT registered businesses, including charities, can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. They will have until the end of the financial year to repay.
The Government will also give all eligible retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months. The Government also extended the support available to individuals and businesses, including a package of government-backed and guaranteed loans, which make available an initial £330 billion of guarantees – equivalent to 15% of GDP.
For Income Tax Self-Assessment, payments due on the 31st of July 2020 will be deferred until the 31st of January 2021.
Under the Coronavirus Job Retention Scheme, employers (including charities) can put workers on temporary leave and the government will pay them cash grants of 80% of their wages up to a cap of £2,500 a month, providing they keep the worker employed. They will receive the grant from HMRC, covering the cost of wages backdated to 1 March 2020.
Statutory Sick Pay (SSP) will be available for those unable to work because they are self-isolating in line with government advice; this is on top of the Prime Minister’s announcement that SSP will be payable from day 1 instead of day 4 for affected individuals. Support will be available through Universal Credit and Contributory Employment and Support Allowance for those not eligible for SSP.
HMRC have scaled up their Time to Pay offer to all taxpayers, including charities, who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. Taxpayers can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to implement a Highlands specific Region and Growth Deal to work alongside the Inverness and Highlands City Region Deal.
Answered by Rishi Sunak - Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
The UKG committed £53.1m to an Inverness and Highlands City Region Deal in March 2016 which covers the Highlands area. This is part of the £1.4bn the UK Government has announced for the funding of ten City and Growth Deals in Scotland. More recently, the Government has committed to provide 100% coverage of City and Growth Deals for Scotland.
The Scottish Government is accountable for City and Growth Deals funding in the usual way and in line with the fiscal framework. Audits will be undertaken by Audit Scotland and the National Audit Office in the usual way. Detailed accountability and working arrangements are currently being agreed between the UK Government and Scotland Government via a Memorandum of Understanding which will be published in due course.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Audit Scotland's report on Scotland's City Region and Growth Deals, published 16 January 2020, what steps his Department is taking to ensure (a) effective auditing of Scottish City Region Deals and (b) funding from the Inverness and Highlands City Region Deal benefits the whole region.
Answered by Rishi Sunak - Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
The UKG committed £53.1m to an Inverness and Highlands City Region Deal in March 2016 which covers the Highlands area. This is part of the £1.4bn the UK Government has announced for the funding of ten City and Growth Deals in Scotland. More recently, the Government has committed to provide 100% coverage of City and Growth Deals for Scotland.
The Scottish Government is accountable for City and Growth Deals funding in the usual way and in line with the fiscal framework. Audits will be undertaken by Audit Scotland and the National Audit Office in the usual way. Detailed accountability and working arrangements are currently being agreed between the UK Government and Scotland Government via a Memorandum of Understanding which will be published in due course.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department plans to evaluate the effectiveness of the RBS mobile banking service as a result of the closure of RBS branches; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury does not make assessments of branch closures, or alternative methods of banking, as these are commercial matters for banks. However, Government believes it is important the impact of branch closures on communities must be understood, considered and mitigated where possible.
The Government supports the industry’s Access to Banking Standard which commits banks to ensure personal and business customers are better informed about branch closures and the reasons for them closing. It also helps customers to understand the options they have locally to continue to access banking services, including specialist assistance for customers who need more help. The Access to Banking Standard is monitored and enforced by the independent Lending Standards Board.
Government also considers it important that all customers, wherever they live and especially those who are vulnerable, can still access over the counter services. That is why the Government supports the Post Office’s Banking Framework Agreement, which enables 99% of banks’ personal and 95% of banks’ business customers to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter via its network of 11,600 branches.
The Government is committed to ensuring that communities across the UK are fully aware of the important services that remain available to them at their local Post Office, even if their bank branch is closed. The Post Office and UK Finance have committed to work together to raise public awareness of the banking services available at the Post Office for individuals and SMEs, which the Government welcomes.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans his Department has to ensure rural and remote communities have access to local bank branches.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government recognises the need to support local communities adapt to changes to banking, including when branches close. The Access to Banking Standard commits banks to communicate with and assist customers when a branch closes. And since January, 99% of personal and 75% of business customers are able to bank at one of Post Office’s 11,600 branches nationwide. Ultimately, decisions on the opening and closing of individual bank branches are a commercial decision for the banks involved.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment the Government has made of the effect of closure of ATMs in rural areas on the economies and communities of those areas.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government believes that widespread free access to cash remains extremely important to the day-to-day lives of many consumers and businesses in the UK.
The Government has made no assessment of the effect of closure of ATMs on rural economies and communities, but is monitoring developments within the UK’s ATM network – LINK - as is the Payment Systems Regulator.
The number of ATMs has increased from 36,000 in 2001 to over 70,000 in 2016. LINK also runs a financial inclusion programme which subsidises free to use ATMs in areas without existing access. LINK has identified 1,700 rural and/or deprived ‘target’ areas, and the majority of these areas are now served by 1,110 ATMs, up from 171 in 2007.
The Government regularly engages with industry on access to payment services.