Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure that banks are passing on the interest rate increase to their customers.
Answered by John Glen - Shadow Paymaster General
The pricing of financial products is a commercial decision for firms and the Government does not seek to intervene in such decisions.
The independent Monetary Policy Committee (MPC) of the Bank of England makes monetary policy decisions independently of the Government. Therefore, the Government does not comment on the conduct or effectiveness of monetary policy. The MPC sets the base rate of interest, which is known as Bank Rate. This is the rate of interest the Bank of England will pay on reserves held with them by commercial banks. MPC decisions over Bank Rate guide commercial banks’ decisions over retail interest rates, i.e. interest rates they charge on loans and pay on deposits. However, retail banks also make commercial judgements that influence the degree of pass‐through from changes in Bank Rate into retail interest rates, with conditions in financial markets and in the banking sector also influencing interest rates paid on deposits or charged for lending.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reviewing HMRC policy on capital allowances on workboats.
Answered by Lucy Frazer
Capital allowances, including writing down allowances, provide tax relief for businesses' capital expenditure on qualifying plant or machinery.
In 1997 a 6 per cent special rate writing down allowance was introduced for assets with a long life, which is more than 25 years, to align their tax position more closely with the commercial accounts of a business. This compared to a 25 per cent main rate, which is now 18 per cent, for plant and machinery.
HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life of more or less than 25 years when new.
Ships were initially exempted from this change, with owners given 13 years to adjust to the long-life asset rules. Ships are now treated consistently with all other business assets.
The Government keeps all tax reliefs under review.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the (a) effectiveness of HMRC's policy on long-life assets and (b) effect of that matter on tug owners.
Answered by Lucy Frazer
Capital allowances, including writing down allowances, provide tax relief for businesses' capital expenditure on qualifying plant or machinery.
In 1997 a 6 per cent special rate writing down allowance was introduced for assets with a long life, which is more than 25 years, to align their tax position more closely with the commercial accounts of a business. This compared to a 25 per cent main rate, which is now 18 per cent, for plant and machinery.
HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life of more or less than 25 years when new.
Ships were initially exempted from this change, with owners given 13 years to adjust to the long-life asset rules. Ships are now treated consistently with all other business assets.
The Government keeps all tax reliefs under review.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support the hospitality industry and independent distilleries through the upcoming Budget and the Alcohol Duty Review; and when he plans to announce the next stage of that Review.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The 2020 Budget committed the Government to undertaking a wide-ranging review of alcohol. Last Autumn the Government launched a Call for Evidence for this review. We are now in the process of analysing responses.
The Government has acted through its unprecedented coronavirus response to support the hospitality sector, including through furlough, grants and business rates relief. As announced at Budget 2021, the Government extended the temporary reduced rate of VAT (5 per cent) for the tourism and hospitality sector. Although that relief ended on 30 September 2021, on 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help businesses manage the transition back to the standard rate. The new rate will end on 31 March 2022.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have held with HMRC on the classification of long- and short-term vessels under the Capital Allowance scheme for commercial maritime vessels.
Answered by Lucy Frazer
The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.
HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have held with relevant stakeholders on HMRC's enforcement of classification of long- and short-term assets for commercial maritime vessels.
Answered by Lucy Frazer
The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.
HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions officials in his Department have held with relevant stakeholders on changing the classification of long-term assets in the maritime sector.
Answered by Lucy Frazer
The Treasury maintains regular contact with HMRC about all aspects of capital allowances policy.
HMRC does not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, at what level of seniority his Department had discussions with (a) the Royal Bank of Scotland and (b) NatWest on their programmes for nationwide branch closures; and how many times such discussions took place.
Answered by Simon Kirby
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: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he plans to take to reduce VAT on flight training and general aviation-related mechanical or engineering education programmes.
Answered by Jane Ellison
Where education is provided for no charge it is outside the scope of VAT.
Where an eligible body such as a university or a further education college charges for supplies of vocational training, or school, higher, or further education, that supply will be exempt from VAT.
While all taxes are kept under review, there are no plans to provide further VAT relief for flight training and general aviation-related mechanical or engineering education programmes.
Asked by: Kelly Tolhurst (Conservative - Rochester and Strood)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent steps he has taken to support high street banking for local communities.
Answered by Simon Kirby
High streets are a crucial part of our local and regional economies. The Government wants to see vibrant hubs where people live, shop, use services, and spend their leisure time.
A new agreement between the Post Office and UK banks, announced on 24 January 2017, means that more individuals and businesses can use 11,600 local Post Office branches to access a wider range of banking services. Thanks to the new agreement, the Post Office estimates that 99% of personal bank customers and 75% of business customers will now be able to do their day to day banking at a Post Office.
The Government recognises the need to support local communities to adapt to changes in banking, including when bank branches close. In March 2015, the Government helped to broker an industry-wide agreement to work with customers and communities to minimise the impact of bank branch closures and put in place alternative banking services. The Government welcomed Professor Russel Griggs’ recent review of the Protocol and is pleased to see the industry commit to further improvements to protect those affected by closures.
The Government has also made a manifesto commitment to support credit unions in making financial services more accessible. Credit unions are democratic, not-for-profit, financial services providers which are owned and run by members of their community and who provide affordable, sustainable credit to their members.