Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 April 2023 to Question 177808 on Economic Situation and Shipping, if he will make it his policy to ensure that the Corporation Tax regime encourages employment of UK resident seafarers on the vessels qualifying for relief under that regime.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Following reforms to Tonnage Tax announced at Autumn Budget 2021, the Government announced further Tonnage Tax changes to encourage jobs and investment in the UK shipping industry at Spring Budget 2023.
These changes include opening an election window to allow shipping companies to join or re-join UK Tonnage Tax. They also include expanding the regime to include ship management companies, and increasing the capital allowances limit for lessors of ships into the regime.
To take advantage of Tonnage Tax, shipping companies must strategically and commercially manage ships in the UK and commit to train or underwrite the training of sufficient seafarers to meet a "Minimum Training Obligation" (MTO). Trainees must be ordinarily resident in the UK and either a UK/EEA national or a British citizen from the Channel Islands or Isle of Man.
The Government remains committed to the MTO and encouraging the training of seafarers. In September 2022, the Government increased the support for maritime training (SMarT) funding of Cadet training to 50% from the previous level of 30% for the period April 2022 to September 2024.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to ensure that (a) multinational and (b) domestic top-up taxes set out in the Spring Budget 2023 apply to (a) P&O Ferries Ltd and (ii) other UK subsidiaries of DP World.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Pillar 2 rules have been globally agreed and will apply to multinational and domestic companies with an annual consolidated revenue of €750 million or more. The UK is legislating Pillar 2 in the Spring Finance Bill, with implementation from accounting periods beginning on or after 31 December 2023.
The detailed application of the rules is set out in this legislation and is consistent with the internationally agreed rules.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will estimate the total annual amount of corporation tax relief that shipping groups qualifying for the Tonnage Tax will receive in each financial year from 2022-23 to 2025-26.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Information on Tonnage Tax for 2022-23 is published in HMRC’s latest non-structural tax reliefs publication on the GOV.UK Website here: Non-structural tax reliefs - GOV.UK (www.gov.uk)
Estimates are not held for the costs beyond 2022-2023.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the Spring Budget 2023 on (a) the UK economy and (b) international shipowners.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Assessments of the impact of the Budget, are the responsibility of the independent Office for Budget Responsibility (OBR). Further details can be found in the OBR’s latest Economic and Fiscal Outlook published in March 2023: https://obr.uk/efo/economic-and-fiscal-outlook-march-2023/At Spring Budget 2023, the Government announced further Tonnage Tax changes to encourage jobs and investment in the UK shipping industry. These changes include opening an election window to allow shipping companies to join or re-join UK Tonnage Tax and benefit from the advantageous Corporation Tax regime following reforms to Tonnage Tax that came into effect last year. These reforms aim to increase the number of firms basing their headquarters in the UK.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with (a) Cabinet colleagues and (b) insurance providers on helping to ensure that cancer patients are able to access affordable travel insurance.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Ensuring that everyone has access to suitable and affordable financial products and services is a priority for this Government.
The Financial Conduct Authority (FCA) found that some consumers with pre-existing medical conditions, including cancer, faced challenges navigating the travel insurance market. To address this, from April 2021, the FCA requires all firms offering retail travel insurance to signpost consumers to a directory of specialist providers if they are declined cover, offered cover with an exclusion, or charged a significantly higher premium based on their serious pre-existing medical condition.
We continue to work closely with regulators, and stakeholders from the public, private and third sectors on this important issue.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to reply to the letter from the hon. Member for Hull East of 19 November 2021 on tonnage tax reform.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HM Treasury has no record of receiving the letter of 19 November from the Hon Member. The Member supplied a copy of the letter on 26 January which is now receiving attention. HM Treasury apologises for the delay in responding and will have a response with the Member as soon as possible.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to consult trade unions on (a) employment rights and (b) governance structures before the eight Freeports announced in the Budget statement on 3 March 2021 begin operating.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government is pleased to have announced the locations of 8 new English Freeports at Budget. The Ministry for Housing, Communities & Local Government will shortly publish the rationale behind the selection of these Freeport locations according to the process laid out in the Prospectus.
Successful bidders will be confirmed subject to a business case review, agreement of governance arrangements, and the fulfilment of the appropriate authorisations.
Freeports are not deregulatory and the government will ensure that the UK’s high standards with respect to workers’ rights will not be compromised.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Humber Freeport bid included commitments to maintain existing collective bargaining agreements with trade unions organising seafarers working on merchant ships working from Hull port; and if he will place a copy of that bid in the Library.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government is pleased to have announced the locations of 8 new English Freeports at Budget. The Ministry for Housing, Communities & Local Government will shortly publish the rationale behind the selection of these Freeport locations according to the process laid out in the Prospectus.
Successful bidders will be confirmed subject to a business case review, agreement of governance arrangements, and the fulfilment of the appropriate authorisations.
Freeports are not deregulatory and the government will ensure that the UK’s high standards with respect to workers’ rights will not be compromised.
Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will list the employers that are participating in Project Birch.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government does not comment on individual cases but will notify Parliament of the spending incurred as the result of any support provided.Asked by: Karl Turner (Labour - Kingston upon Hull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake an economic impact assessment of plans by P&O Ferries to make 1,100 staff redundant by the end of June 2020.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that the news regarding job losses at P&O will be distressing for employees and their families.
We encourage all firms, including those in the maritime sector, to draw on the unprecedented package of measures we have made available to support them through this time.