Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that all LCF bondholders will be compensated.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
I know that this has been a very difficult time for LCF bondholders. The Government has announced that it will establish a compensation scheme that will provide 80% of LCF bondholders’ principle investment up to a maximum of £68,000. The scheme will be available to all LCF bondholders who have not already received compensation from the Financial Services Compensation Scheme (FSCS).
The FSCS will administer the scheme. They are committed to ensuring that payments are made to all eligible LCF bondholders within 6 months of the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill securing Royal Assent. This Bill was brought forward by the Government at the earliest possible opportunity and was introduced on 12 May 2021.
I hope that the compensation offered by the Government scheme will offer some relief to the distress and hardship suffered and provide closure on this difficult matter.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what further support he plans to make available to small businesses that have so far been ineligible for financial support during the covid-19 outbreak; and if he will amend the eligibility criteria to include previously ineligible businesses.
Answered by Kemi Badenoch - President of the Board of Trade
Since the beginning of this crisis, the Government has put in place an unprecedented package of support for businesses worth over £280 billion. These schemes were designed with two principles in mind: the need to target support at those who need it most, and the need to protect the exchequer against error, fraud, and abuse. This is because the Government needs to balance its commitment to support people through the pandemic, with its duty to protect the taxpayer to ensure that public funds are managed responsibly.
The Government has acknowledged that it has not been possible to support everyone in the way they might want. However, businesses not eligible for certain forms of support may still be able to benefit from government-backed loans and general and sector-specific grants.
In January, all local authorities in England received a top-up worth a total of £500m to their allocation from the Additional Restrictions Grant (ARG), which has already provided local authorities with £1.1 billion. This funding will ensure that local authorities can make discretionary grants to businesses which are not eligible for other forms of support, but which are nonetheless experiencing a severe impact on their business due to the national lockdown. We encourage businesses in this position to contact their local authority to discuss what support may be available.
The Treasury is working intensively with employers, delivery partners, industry groups and other Government departments to understand the impacts of COVID-19 and specific challenges in the economy. We will continue to take a flexible approach and keep all policies under review to explore how we can better support different groups and ensure that the support provided is right for the economy as a whole over the coming months.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason he decided to withdraw the Job Retention Bonus.
Answered by Jesse Norman
The objective of the Job Retention Bonus (JRB) was to incentivise employers to retain employees between November and the end of January through a £1,000 bonus paid to the employer. The extension of the Coronavirus Job Retention Scheme (CJRS) allows employers to do that until the end of April by covering 80% of the furloughed employees’ wages. The policy intent of the JRB therefore fell away with the extension of the CJRS. The Government will set out details of how a revised retention incentive will work in due course.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, in circumstances where a business has a successful Business Interruption policy claim met and the loss adjuster deducts from that claim the amount the business had received in furlough payments, whether insurance companies are paying to HM Treasury that deduction; and if it is Government policy that deductions of furlough payments from insurance claims should be paid to the Government.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority has advised that all deductions from business interruption insurance settlements should be assessed on a case-by-case basis. The individual policy wording generally sets out the basis on which the sum due to the policyholder following an insured event will be calculated. Insurers should therefore calculate claims payments in accordance with the terms and conditions of the relevant policy.
The Government is in continual dialogue with the insurance sector regarding its response to this unprecedented situation, and is encouraging insurers to do all they can to support customers during this difficult period.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether online purchases from the EU made by UK customers by credit card will have to be made by (a) bank transfer and (b) in Euros after the transition period in the event of no deal being reached with the EU.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Online purchases by payment card from EU retailers are still possible now that the UK has left the Transition Period of EU Withdrawal. Whether a retailer accepts credit or debit cards as a payment method is a commercial decision for individual retailers.
Furthermore, the UK has maintained its participation in the Single Euro Payments Area (SEPA), enabling continued Euro credit transfers and direct debits through the SEPA payment schemes.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the UK is exporting fabric for use in personal protective equipment.
Answered by Jesse Norman
HMRC are responsible for the collection and publication of data on UK imports and exports of goods to and from the UK. HMRC release this information monthly as a National Statistic: the Overseas Trade in Goods Statistics.
However, the trade data collected does not enable HMRC to determine the ultimate end use of exported goods, and so cannot be used to confirm whether fabric is exported for use in personal protective equipment.
There is aggregated trade data available for fabrics on HMRC’s uktradeinfo.com website, under ‘Build your own data tables’. The site also contains a ‘Help’ function with information on how to extract trade data.
Trade data relating to the value of textiles and textile articles, including fabrics, can be searched for using commodity codes in chapters 50 to 63 of the Trade Tariff: https://www.trade-tariff.service.gov.uk/sections.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps are being taken to protect the (a) relationship and (b) data sharing between the UK and European partners on tackling illicit trade.
Answered by Jesse Norman
The UK is committed to continued cooperation with European partners on tackling illicit trade. As part of negotiations with the EU, the UK has proposed provisions for customs cooperation and mutual administrative assistance. This would enable the parties to work together while upholding their respective customs regimes, to protect revenue and combat criminality through efficient and reciprocal exchange of information and mutual assistance across customs matters.
The Government is clear that everyone must pay tax that is legally due, no matter who they are. The Government has a strong record in tackling tax avoidance, evasion and non-compliance. With regard to collaboration with private prosecutors, the information that HMRC can lawfully share with third parties is restricted by the Commissioners for Revenue and Customs Act 2005 (CRCA). However, HMRC have existing structures in place to allow for the receipt, management and exploitation of information and intelligence from individuals and private sector sources.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the merits of collaborating with private prosecutors in tackling illicit trade in the UK.
Answered by Jesse Norman
The UK is committed to continued cooperation with European partners on tackling illicit trade. As part of negotiations with the EU, the UK has proposed provisions for customs cooperation and mutual administrative assistance. This would enable the parties to work together while upholding their respective customs regimes, to protect revenue and combat criminality through efficient and reciprocal exchange of information and mutual assistance across customs matters.
The Government is clear that everyone must pay tax that is legally due, no matter who they are. The Government has a strong record in tackling tax avoidance, evasion and non-compliance. With regard to collaboration with private prosecutors, the information that HMRC can lawfully share with third parties is restricted by the Commissioners for Revenue and Customs Act 2005 (CRCA). However, HMRC have existing structures in place to allow for the receipt, management and exploitation of information and intelligence from individuals and private sector sources.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of including hair and beauty sector in the temporary VAT cut for the hospitality sector.
Answered by Jesse Norman
The temporary VAT reduction is designed to support businesses and jobs in the tourism and hospitality industry. In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.
All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020 and the Government deferred Value Added Tax (VAT) payments so UK VAT-registered businesses did not need to pay any VAT due with VAT returns from 20 March through to the end of June 2020, until 31 March 2021.
A range of further measures has been made available. This includes the Coronavirus Business Interruption Loan Scheme and the Coronavirus Job Retention Scheme to help firms keep people in employment. The Bounce Back Loan Scheme has also been launched to help small businesses during the COVID-19 outbreak.
The Government will continue to consider how best to support the economic recovery.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the hair and beauty sector was included in the wider hospitality and retail sectors in relation to guidance issued during the covid-19 lockdown but not included in the temporary VAT cut for the hospitality sector.
Answered by Jesse Norman
The temporary VAT reduction is designed to support businesses and jobs in the tourism and hospitality industry. In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.
All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020 and the Government deferred Value Added Tax (VAT) payments so UK VAT-registered businesses did not need to pay any VAT due with VAT returns from 20 March through to the end of June 2020, until 31 March 2021.
A range of further measures has been made available. This includes the Coronavirus Business Interruption Loan Scheme and the Coronavirus Job Retention Scheme to help firms keep people in employment. The Bounce Back Loan Scheme has also been launched to help small businesses during the COVID-19 outbreak.
The Government will continue to consider how best to support the economic recovery.