Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the economic effect of the covid-19 outbreak on drivers who have leased a zero-emissions-capable taxi; and what steps he plans to take to support those people.
Answered by Jesse Norman - Shadow Leader of the House of Commons
This is a challenging time for many sectors and individuals, including taxi drivers. In response to the second national lockdown, the Chancellor announced that the next Self-Employment Income Support Scheme (SEISS) grant, which covers the period from November to January, will increase to 80% of average profits, up to £7,500.
The SEISS continues to be just one element of a substantial package of support for the self-employed, and those ineligible for the SEISS Grant Extension may still be eligible for other elements of the support available. The Universal Credit standard allowance has been temporarily increased for 2020-21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. They may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
More widely, the Government uses the tax system to encourage the uptake of vehicles with low carbon dioxide emissions to help meet the UK’s legally binding climate change targets. Since April 2019, purpose built zero-emission capable taxis have been exempted from the Vehicle Excise Duty expensive car supplement. At Budget 2020, the Government also announced that First Year Allowances on purchases of zero-emission business cars, including zero-emission taxis, will remain available until at least March 2025. Businesses hiring zero-emission cars also retain the ability to set 100% of rental costs against taxable profits.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his announcement of 9 October 2020 on the expansion of the Jobs Support Scheme, whether that expansion applies to businesses that supply businesses legally required to close their premises as a result of covid-19 restrictions.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The scheme will cover businesses across the UK with premises that are legally required to close as a direct result of government coronavirus restrictions set by one or more of the four governments in the UK, including businesses which have premises restricted to providing delivery and collection services.
If and when new local or national sector closures are announced, new businesses will become eligible for support under the scheme if they are affected.
Businesses that are open can use the other element of the Job Support Scheme aimed at those able to open but facing lower levels of demand, available from 1 November. The Government will pay a third of hours not worked up to a cap, so that employees earn a minimum of 77 per cent of their normal wages.
In addition to the JSS, the Government has made available a comprehensive package of support for businesses to support their cashflow during the pandemic, including loan schemes and tax deferrals. As of 20 September, the Bounce Back Loan Scheme (BBLS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Coronavirus Business Interruption Loan Scheme (CBILS) had together provided £57.31bn of finance to businesses in need.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will pay tax credits claimants transitioning to universal credit until the their first universal credit payment is received.
Answered by Steve Barclay
Unlike Tax Credits, Universal Credit is assessed and paid monthly and is based on claimants’ actual earnings in the month, rather than their annual income.
It is not possible to award a Universal Credit payment as soon as a claim is made, as the assessment period must run its course before the award of Universal Credit can be calculated. As a claimant’s first Universal Credit payment is paid from the date the claim was made, continuing to pay Tax Credits to former claimants in the interim period would result in dual provision.
However, no one has to wait for financial support. Advance payments are available from day one to ensure that families have money to support them through this period.
In addition, to support people during the Covid-19 outbreak we have made advances available online and over the phone, ensuring that claimants do not need to attend a jobcentre.