Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the (a) annual budget and (b) number of staff was for HMRC's Fraud Investigation Service in each of the last five years.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
HMRC is determined that tax fraud should not pay. Since the launch of our Fraud Investigation Service in 2015-16, we have secured and protected nearly £30 billion for our vital public services and secured more than 3,800 criminal convictions. In addition, HMRC’s Spending Review settlement includes £100 million for more resources for HMRC to tackle all forms of non-compliance, including avoidance and evasion, and continued funding of over £70 million for the Taxpayer Protection Taskforce to combat fraud and abuse of the Covid-19 schemes.
The tables below detail the full-time equivalent staffing levels in both Fraud Investigation Service (1) and the Proceeds of Crime unit (2).
1. HMRC's Fraud Investigation Service | |||||||||||||
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 * | ||||||||
a) Annual Budget (approx.)- includes Pay-bill, Other Resource Costs, Income & Capital. | £240m | £260m | £300m | £300m | £300m | ||||||||
b) Full-time equivalent staff at the end of the year (approx.) | 4,100 | 4,400 | 4,900 | 4,400 | 4,900 | ||||||||
*2021-22 staff number is a year-end projection | |||||||||||||
2. HMRC's Proceeds of Crime Unit (HMRC’s Fraud Investigation Service hosts this function) | ||||||
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 * | |
b) Full-time equivalent staff at the end of the year (approx.) | 400 | 350 | 400 | 350 | 400 | |
*2021-22 staff number is a year-end projection | ||||||
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support his Department plans to provide to community development finance institutions across the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury recognises the vital role that non-banks, including Community Development Financial institutions (CDFIs), play in the provision of credit to SMEs. It remains grateful for the way the sector has responded to the current crisis. The Government remains committed to promoting competition and widening the funding options available to UK businesses.
Our position has always been that the Government does not provide capital to financial institutions, who must source their own funding. For those lenders accredited under the government-backed Recovery Loan Scheme, it is worth noting that they can benefit from the transfer and assignment of the guarantee. The government made this allowance in response to a request from alternative lenders support their ability to access funding.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of capital gains tax receipts came from the sale of residential rental accommodation in the most recent period for which figures are available.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
It is not possible to provide the proportion of Capital Gains Tax (CGT) receipts from residential rental accommodation as information collected as part of CGT returns does not specify the use of a property.
In 2020-21, however, it is estimated that total CGT liabilities on UK residential property totalled £1.0 billion. This figure includes liabilities from all types of CGT liable residential property disposals, including rental properties and second homes.
Data on CGT residential property disposals can be found in Table 8 of the CGT national statistics: https://www.gov.uk/government/statistics/capital-gains-tax-statistics
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to treat the replacement by residential landlords of high carbon heating systems in rental accommodation with low carbon systems such as heat pumps as tax deductible repairs.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has recently announced support to incentivise the installation of low carbon heating as part of the Net Zero Strategy. The new £450 million Boiler Upgrade Scheme will support the uptake of heat pumps, which we are confident will soon be a cost-effective alternative to oil heating. The Home Upgrade Grant also provides support to landlords with low-income tenants in off gas-grid properties to install energy efficiency upgrades and low carbon heating, subject to a minimum contribution. The Government also maintains a reduced rate of VAT of 5 per cent for the installation of many energy saving materials, including ground source and air source heat pumps, subject to certain conditions. HM Treasury keeps the tax treatment of deductions for landlords under review.Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on (a) City of London’s reputation and (b) inward investment of recent investigations undertaken by the Serious Fraud Office.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Serious Fraud Office continues to deliver on its mission to fight serious financial crime, deliver justice for victims, and protect the UK’s reputation as a safe place to do business.
Successes in 2021-22 so far include: securing a conviction in the GPT Special Project Management case; and entering into a £103m Deferred Prosecution Agreement with Amec Foster Wheeler Energy Limited.
The UK remains a leading destination for foreign investment; second in the world for inward Foreign Direct Investment stocks with $2.2 trillion, behind the USA and the Netherlands in 2020.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to bring forward regulations for Mutual Deferred Shares under the Mutuals’ Deferred Shares Act 2015.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has consulted widely with industry representatives in considering whether to lay secondary legislation to enable mutual insurers to raise equity by issuing Mutual Deferred Shares. Mutual insurers and their representatives made clear that Mutual Deferred Shares would only be issued if they both qualified as Tier 1 regulatory capital and would not alter the tax treatment of the issuing mutual. The Government’s decision in 2018 not to lay secondary legislation was taken based on an assessment that it was not possible to design Mutual Deferred Shares to meet both these conditions. The Government is committed to supporting the mutuals sector, but continues to have no plans to bring forward such legislation.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to establish mutual banks from dormant funds in banks.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government welcomes the efforts to establish regional mutual banks and recognises the importance of diversity in the banking system. Officials have been engaging with prospective mutual banks over their efforts to raise capital and look forward to further discussions.
Banking Competition Remedies Ltd (BCR) was established in 2018 as the independent body to implement and oversee the NatWest (previously RBS)-funded Alternative Remedies Package (the Package), including the £425m Capability and Innovation Fund (CIF). This consists of 23 pre-determined grants divided into five pools (A – E). Each pool has a distinct pro-competition purpose based on criteria agreed between HM Treasury (HMT) and the European Commission.
Eligible financial services providers competed for these grants to improve their financial products and services available to SMEs, and to improve their capability to compete with NatWest in the provision of banking services to SMEs. Most of the grants have now been allocated, except £5m worth of funds returned to BCR in January 2021. BCR intend to run a ‘Pool F’ consultation process for the returned funds in August 2021 and bodies eligible for pools A, B or C will be able to apply.
BCR is independent from government and has sole responsibility for evaluating applications and allocating grants to eligible bodies under the CIF. HMT plays no role in the ongoing delivery of the Package and does not have any influence over the decision-making process.
BCR has responsibility for communicating information regarding the Package to the market. Further information on the Package, including eligibility criteria and timelines for implementation is available on BCR’s website.
The distribution of dormant accounts money is governed by the Dormant Bank and Building Society Accounts Act 2008. Following the government's commitment to expanding the Dormant Assets Scheme, the Dormant Assets Bill was introduced to the House of Lords on Wednesday 12 May.
The government recognises the public interest in how this funding is spent in England and has concluded that some increased flexibility in determining this would be beneficial. The Bill therefore amends the approach to restrictions in England in the 2008 Act to mirror the model used for the devolved administrations. This is intended to allow the Government to respond to public feedback and evolving social and environmental needs in England over time by setting the causes through secondary legislation, which is subject to due consultation and parliamentary approval. Should the measure pass, the Government intends to launch a public consultation on the causes to which future funding can be distributed in England.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether new funds are planned to be open to start up mutual banks from banking competition remedies.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government welcomes the efforts to establish regional mutual banks and recognises the importance of diversity in the banking system. Officials have been engaging with prospective mutual banks over their efforts to raise capital and look forward to further discussions.
Banking Competition Remedies Ltd (BCR) was established in 2018 as the independent body to implement and oversee the NatWest (previously RBS)-funded Alternative Remedies Package (the Package), including the £425m Capability and Innovation Fund (CIF). This consists of 23 pre-determined grants divided into five pools (A – E). Each pool has a distinct pro-competition purpose based on criteria agreed between HM Treasury (HMT) and the European Commission.
Eligible financial services providers competed for these grants to improve their financial products and services available to SMEs, and to improve their capability to compete with NatWest in the provision of banking services to SMEs. Most of the grants have now been allocated, except £5m worth of funds returned to BCR in January 2021. BCR intend to run a ‘Pool F’ consultation process for the returned funds in August 2021 and bodies eligible for pools A, B or C will be able to apply.
BCR is independent from government and has sole responsibility for evaluating applications and allocating grants to eligible bodies under the CIF. HMT plays no role in the ongoing delivery of the Package and does not have any influence over the decision-making process.
BCR has responsibility for communicating information regarding the Package to the market. Further information on the Package, including eligibility criteria and timelines for implementation is available on BCR’s website.
The distribution of dormant accounts money is governed by the Dormant Bank and Building Society Accounts Act 2008. Following the government's commitment to expanding the Dormant Assets Scheme, the Dormant Assets Bill was introduced to the House of Lords on Wednesday 12 May.
The government recognises the public interest in how this funding is spent in England and has concluded that some increased flexibility in determining this would be beneficial. The Bill therefore amends the approach to restrictions in England in the 2008 Act to mirror the model used for the devolved administrations. This is intended to allow the Government to respond to public feedback and evolving social and environmental needs in England over time by setting the causes through secondary legislation, which is subject to due consultation and parliamentary approval. Should the measure pass, the Government intends to launch a public consultation on the causes to which future funding can be distributed in England.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to extend the Digital Services Tax to goods provided directly from Amazon.
Answered by Jesse Norman
The Digital Services Tax is a tax that ensures search engines, social media platforms, and online marketplaces pay UK tax that reflects the value they derive from UK users.
The Government is unable to discuss tax in relation to specific businesses. The DST is a temporary measure and will be removed once an appropriate global solution is in place.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on SMEs of the covid-19 lockdown announced in January 2021.
Answered by Kemi Badenoch - President of the Board of Trade
Throughout this crisis, the Government has sought to protect people’s jobs and livelihoods, while also supporting businesses and public services across the UK. To do this, the Government has spent over £280 billion to put in place an economic package of support which will provide businesses and individuals with certainty over the coming months.
In order to ensure that any decisions continue to meet the evolving challenges presented by Covid-19, the Government is working intensively with employers, delivery partners, industry groups and other Government departments to understand the impacts of COVID-19 and specific challenges facing UK businesses – including SMEs. That is why, in response to the latest national lockdown in January, the Chancellor announced £4.6 billion of further support to businesses on top of the measures adopted at our previous economic responses.
The Treasury remains committed to ensuring we take the right action at the right time to support individuals and businesses in every region and nation of the United Kingdom. We will continue to take a flexible approach and keep all restrictions and policies under review.