Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she made an assessment of the potential merits of including within the terms of reference for the Independent Review of the Loan Charge consideration of the (a) mis-selling by scheme promoters, (b) advice on legality given by accountants, (c) impact of retrospective pursuit on mental health and welfare and (d) measures for protection against recurrence in future; and if she will take steps to revise the terms of reference to include those matters.
Answered by James Murray - Exchequer Secretary (HM Treasury)
On 23 January, the Government launched the Independent Review of the Loan Charge, honouring a commitment made at the Budget.
The objectives of the review are to help bring the matter to a close for those affected; ensure fairness for all taxpayers; and ensure that appropriate support is in place for those subject to the Loan Charge. The terms of reference for the review have been published here: www.gov.uk/government/publications/independent-review-of-the-loan-charge.
As I set out in my letter to the reviewer, we want the review to bring the Loan Charge to a close for those people who still owe substantial amounts of money but can see no way to resolve their debts. It is now for the reviewer to conduct his review and make recommendations to the Government.
The Government is also taking action to prevent disguised remuneration in the future. At the Budget, the Government announced the most ambitious ever package to close the tax gap, raising £6.5 billion of additional tax revenue in 2029-30. The package includes measures to tackle promoters of tax avoidance schemes and to address non-compliance in umbrella companies, where most disguised remuneration now takes place.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of changes made to employer's National Insurance contributions at the Autumn Budget 2024 on the (a) staffing levels of and (b) level of (i) economic and (ii) social contributions to charities; and if she will make it her policy to exempt the charitable sector from these changes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In order to repair the public finances and help raise the revenue required to support public services, the government has taken the difficult decision to increase employer National Insurance contributions (NICs).
HMRC published on 13 November a Tax Information and Impact Note that covers the impact of the changes on charities as employers.
The Government has protected the smallest businesses and charities from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no NICs. All charities are eligible for the Employment Allowance, even if they are wholly or mainly carrying out functions of a public nature.
More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023-24.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent representations she has received (a) directly and (b) via other Departments from the Special Educational Needs and Disability Transport Operators Group on the potential inclusion of (i) drivers and (ii) passenger assistants in any (A) grant and (B) compensation scheme to offset the impact of changes in employer national insurance contributions; and if she will include this cohort in any such scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government will provide support for departments and other public sector employers for additional employer National Insurance contributions (NICs) costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way. This is the usual approach the Government takes to supporting the public sector with additional employer NICs costs, as was the case with the previous Government’s Health and Social Care Levy.
This does not include support for the private sector, including private sector firms contracted by central/local government. For private sector organisations that contract with local or central government, the impact of tax changes would be taken into account along with all other changes to their cost base in the usual way through contract negotiations.
The definition of who is in scope as a public sector employee is based on Office of National Statistics classification of the entity paying employer NICs. This applies to employees who are directly employed by the public sector, but not, for example, where services are contracted out. The public sector comprises central government, local government and public corporations.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of increasing National Insurance contributions at the Autumn Budget 2024 on the ability of (a) Citizens Advice services and (b) other community-centred charities to maintain their (i) staffing levels and (ii) contribution to society.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In order to repair the public finances and help raise the revenue required to increase funding for public services, the Government has taken the difficult decision to increase employer National Insurance.
HMRC recently published on 13 November a Tax Information and Impact Note that covers the impact of employer NICs changes.
The Government has protected the smallest businesses and charities from the impact of the increase to Employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no NICs at all next year, more than half of employers will see no change or will gain overall from this package, and all eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs
More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Fire and Rescue Service is not receiving the exemption from the rise in National Insurance contributions as the other Emergency Services.
Answered by James Murray - Exchequer Secretary (HM Treasury)
To repair the public finances and help raise the revenue required to fund public services, the Government has taken the difficult decision to increase employer National Insurance.
The Government will provide support for public sector employers, including fire and rescue authorities, for the additional costs of Employer National Insurance Contributions. This is in line with the approach taken under the previous government’s Health and Social Care Levy. Further details will be set out in due course.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of ending the stamp duty penalty for operators of integrated retirement communities modernising the terms of leases of homes units before they are resold to new residents.
Answered by Nigel Huddleston
The Government has been made aware of a proposal for a Stamp Duty Land Tax relief for operators of integrated retirement communities. All taxes are kept under review.Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, which Government Departments will contribute towards the recently announced £2.5 billion assistance package for Ukraine; how much each Department will (a) provide towards that total, (b) receive in extra sums granted by the Treasury to offset that contribution and (c) donate in terms of resources towards that total without reimbursement from the Treasury.
Answered by Laura Trott - Shadow Secretary of State for Education
This is new funding. No department is being asked to contribute to this package.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to assist mortgage-holders on variable rates, whose mortgages have increased significantly since the September 2022 Growth Plan by requiring lenders to (a) extend the repayment term and (b) reverse such increases made following the announcement of that Plan.
Answered by John Glen
The pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene. However, HM Treasury is regularly in contact with mortgage lenders on all aspects of their mortgage business to understand their position and current lending conditions, including most recently at a roundtable hosted by the Chancellor. At this roundtable, the Chancellor made clear that he expects every lender to live up to their responsibilities and support any mortgage borrowers who are finding it tough right now.
It is important to note that around 75% of residential mortgage borrowers are on fixed-rate deals and therefore shielded from interest rate rises in the near term. If mortgage borrowers do fall into financial difficulty, FCA guidance requires firms to provide support through tailored forbearance options, which can include a term extension if that is deemed to be within the borrower’s best interests.
The Government has also taken a number of measures aimed at helping people to avoid repossession, including offering Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit. It was announced at Autumn Statement that, from spring 2023, the Government will allow those on Universal Credit to apply for an SMI loan to help with interest repayments after three months, instead of nine. We will also abolish the zero earnings rule to allow claimants to continue receiving support while in work and on Universal Credit. In addition, the Government offers mortgage borrowers protection in the courts through the Pre-Action Protocol, which makes clear that repossession must always be the last resort for lenders.
More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges ahead, whilst remaining fiscally responsible. In addition to the £37 billion of support for the cost of living already announced for 2022-23, the Government has announced further support for next year designed to target the most vulnerable households. This cost-of-living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities. The Government is also continuing to provide support to all households through the Energy Price Guarantee, which will save the average UK household £500 in 2023-24.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Autumn Statement 2022 on the sustainability of existing mortgages; and if he will make a statement.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
As the Chancellor has said, sound money and a stable economy are the best ways to deliver lower mortgage rates, more jobs and long-term growth. Economic stability relies on fiscal sustainability – and the Autumn Statement puts the public finances onto a sustainable footing, with debt as a proportion of the economy falling by the end of the forecast period.
Indeed, the Office for Budget Responsibility (OBR) has said that without the measures announced at Autumn Statement, underlying debt would be rising by £108bn in 2027-28. The OBR has also noted that the net effect of the Government’s package supports the economy in the aggregate, by “reducing the fall in output when the economy is in recession and unemployment rising”.
To support mortgage borrowers with rising interest rates, it was announced at Autumn Statement that, from spring 2023, the Government will allow those on Universal Credit to apply for a Support for mortgage Interest (SMI) loan to help with interest repayments after three months, instead of nine. We will also abolish the zero earnings rule to allow claimants to continue receiving support while in work and on Universal Credit.
In addition to SMI, the Government also provides protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders. It is also worth noting that, if mortgage holders are struggling to keep up with their payments, FCA guidance requires firms to offer tailored support. This could include a range of measures depending on individual circumstances.
Asked by: Julian Lewis (Conservative - New Forest East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to help support the food and drink supply chain.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The government recognises the efforts of operators in the food and drink sector in maintaining supplies during the pandemic and the challenges that continue to be felt due to global supply chain issues.
The government closely monitors these issues and, where necessary, takes appropriate fiscal and non-fiscal steps to alleviate temporary pressures. In November the government announced support for the pig industry through the Private Storage Aid scheme, additional support for pork processing, and a pork levy holiday.
The government has also taken steps through the visa system to help address temporary labour shortages among pork butchers and poultry workers, building on the successful Seasonal Agricultural Workers scheme.
Over the longer term, the government will continue to support UK agriculture following EU Exit. The 2021 Spending Review fulfilled the commitment to maintain farm budgets in England, Scotland, Wales, and Northern Ireland throughout this parliament, worth a total of £3.7 billion a year.