Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with representatives of retail banks on not increasing interest levels on overdrafts during the covid-19 outbreak; and if her will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Treasury is working closely with industry and the financial regulators to ensure the steps they take are properly coordinated with Government’s wider economic response to COVID-19.
Banks and building societies are ready and able to offer support to their customers who are impacted directly or indirectly by COVID-19. The Government encourages anyone concerned about their overdraft to contact their provider.
Last June, the FCA announced reforms to the overdraft market, including mandating that firms cannot charge more for unarranged overdrafts than arranged overdrafts, banning fixed daily and monthly charges, and a package of measures to improve the transparency of pricing. Overall the FCA expects these changes to make overdrafts simpler, fairer, and easier to manage and will protect the millions of consumers that use overdrafts, particularly more vulnerable consumers. All providers have set their new charging structures ahead of the deadline in April.
The overdraft reforms will end high unarranged charges and the removal of fees means many occasional arranged borrowers will pay less even though their headline rate of borrowing may increase. Across the market, FCA analysis in January found that 7 out of 10 overdraft users will be better off or see no change when the new rules come into force in April.
In instances where consumers see an increased cost for their overdraft borrowing, the FCA expects firms to engage with customers with large overdraft balances and repeat users of overdrafts to make appropriate interventions. This includes customers who are impacted by COVID-19.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether self-employed people will be able to access the grants and loans announced in response to the covid-19 outbreak; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government has always said that the best way to support freelancers and the self-employed through this crisis is through the welfare system. Since 20 March they have been able to benefit from changes such as the £20 increase in the Universal Credit standard allowance and the uprating of Local Housing Allowance. The government is temporarily relaxing the Minimum Income Floor for all self-employed UC claimants for the duration of the outbreak. This means a drop in earnings due to sickness or self-isolation or as a result of the economic impact of the outbreak will be reflected in claimants’ awards. Self-employed people unable to work because they are directly affected by Covid-19 or self-isolating will also be eligible for Contributory Employment and Support Allowance. As announced at Budget, this is now payable from the first day of sickness, rather than the eighth. The Coronavirus Business Interruption Loan Scheme is available to self-employed individuals with an eligible business entity. People who are self-employed or own a business and are concerned about not being able to pay their tax bills because of Covid-19 should contact Her Majesty’s Revenue and Customs’ (HMRC) dedicated Time to Pay service.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase financial support for businesses affected by flooding and covid-19 outbreak; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
At Budget, the Chancellor announced a record funding for flood defences between 2021 and 2027, offering better protection from flooding for 336,000 homes and non-residential properties. Additional funding of £200 million will help communities most at risk of flooding recover faster in cases where they are affected by flood damage. Alongside this, the Chancellor has announced an unprecedented package of support for businesses affected by the covid-19 outbreak, including that all businesses eligible for Small Business Rates Relief and Rural Rates Relief would receive a grant of £10,000 each to help with the impact of Covid-19. Details of this package are available at: www.businesssupport.gov.uk
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to prevent businesses engaging in excessive profiteering during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
This is first and foremost a public health emergency but the coronavirus is having a significant impact on people’s lives and on our economy. The government has announced an unprecedented package of measures to support jobs, incomes and businesses, and will do whatever it takes to get our nation through this crisis. At the same time, the government expects businesses to play their part too, to act responsibly and not seek to make excessive profits. The Competition and Markets Authority have launched a Covid-19 taskforce to monitor the market and enable them to intervene as quickly as possible where required.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will defer the payment of (a) business rates and (b) VAT for businesses which can demonstrate loss of trade as a result of covid-19.
Answered by Jesse Norman
In response to COVID-19, on 17 March the Government introduced a 12 month business rates holiday for all eligible retail, leisure and hospitality businesses in England, where help is needed the most. Eligible businesses large and small will benefit from this exceptional step worth an additional £9.5bn in 2020-21.
HMRC already offer help to businesses struggling to meet their VAT payments with arrangements such as Time to Pay.
In light of the COVID-19 outbreak, the Chancellor has pledged a range of measures to help business through the crisis, including grants, loans and relief from business rates worth more than £300 billion. The Chancellor will continue to keep the situation under review.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reduce employer national insurance contribution rates for businesses that can demonstrate loss of trade as a result of covid-19.
Answered by Jesse Norman
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
UK VAT registered businesses, including charities, can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. They will have until the end of the financial year to repay.
The Government will also give all eligible retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months. The Government also extended the support available to individuals and businesses, including a package of government-backed and guaranteed loans, which make available an initial £330 billion of guarantees – equivalent to 15% of GDP.
For Income Tax Self-Assessment, payments due on the 31st of July 2020 will be deferred until the 31st of January 2021.
Under the Coronavirus Job Retention Scheme, employers (including charities) can put workers on temporary leave and the government will pay them cash grants of 80% of their wages up to a cap of £2,500 a month, providing they keep the worker employed. They will receive the grant from HMRC, covering the cost of wages backdated to 1 March 2020.
Statutory Sick Pay (SSP) will be available for those unable to work because they are self-isolating in line with government advice; this is on top of the Prime Minister’s announcement that SSP will be payable from day 1 instead of day 4 for affected individuals. Support will be available through Universal Credit and Contributory Employment and Support Allowance for those not eligible for SSP.
HMRC have scaled up their Time to Pay offer to all taxpayers, including charities, who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. Taxpayers can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has of the additional revenue that will accrue to the public purse as a result of his proposed IR35 changes; and if he will make a statement.
Answered by Jesse Norman
HMRC’s latest assessment of the additional revenue as a result of the changes to the off-payroll working rules is set out in Table 2.2 of Budget 2020.
HMRC are undertaking an extensive programme of education and support to help organisations and contractors prepare for the reform.
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the representatives of large companies on their ability to assess the employment status of their workers for the purpose of IR35 rules; and if he will make a statement.
Answered by Jesse Norman
The off-payroll working rules (sometimes known as IR35) have been in place since 2000. They are designed to ensure that individuals working like employees pay broadly the same amount of tax and National Insurance Contributions, regardless of the structure they work through. They do not affect the self-employed.
Budget 2018 announced that reforms introduced in 2017 for the public sector would be extended to all sectors, from 6 April 2020, giving businesses time to prepare.
The Government has worked closely with external stakeholders, including contractor representatives, businesses and parliamentary colleagues to ensure that customers are ready for these changes, providing targeted support for customers to help them implement these changes. HM Revenue and Customs (HMRC) will continue working with stakeholders to enhance the Check Employment Status for Tax (CEST) digital service. Customers can use the CEST service to help make decisions on the employment status of their workers for tax purposes.
In addition, HMRC have set up dedicated teams to provide education and guidance to all businesses affected by the reforms. This support will include one-to-one support for 2,000 of the UK’s biggest employers and direct communications to around 15,000 medium-sized businesses.
HMRC have produced guidance for large and medium-sized customers, which can be found on GOV.UK;
https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients
Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total gross amount paid by the UK to the EU was in the most recent 12 month period for which figures are available (a) including and (b) excluding tariffs collected on goods entering the UK from non-EU countries.
Answered by Mel Stride - Secretary of State for Work and Pensions
In 2017, the total gross amount paid by the UK to the EU rounds to £13bn. In accordance with EU regulations, Member States contribute 80% of customs duties collected on non-EU imports. The UK consequently retains 20% of these duties to cover the costs of collection. In 2017, the UK contributed £3.2bn in customs duties to the EU. Therefore, the UK’s gross contribution excluding customs duties to the EU was £9.8bn.Asked by: Laurence Robertson (Conservative - Tewkesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total amount the EU paid to the UK in grants and funding was in the most recent 12 month period for which figures are available.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The most recent statement, European Union Finances 2017, provides public sector receipts details for: European Agriculture Guarantee Fund, European Agriculture Fund for Rural Development, European Social Fund, European Regional Development Fund, and other public-sector receipts. In 2017, these were estimated to be £4.1bn.
Further breakdown of UK receipts is available through the EU Financial Report. This includes those receipts the UK receive through the public sector and private sector, i.e. receipts information on Horizon 2020 and Euratom.
The EU’s Financial Report 2017 total UK receipts at €6.3bn. Using the exchange rate as of 31st December 2016 (this is the rate used for all contributions), this totals £5.4bn of both public sector and private sector receipts.