Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of removing VAT on veterinary (a) services and (b) medicines for 12 months and then undertaking a review of that policy; and if he will make an assessment of the potential impact of that policy on costs for pet owners.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to most goods and services, including veterinary medicines and veterinary services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations.
Although all taxes are kept under review, the Government has no plans to change the VAT treatment of veterinary services or medicines.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of children in the UK who live in a household in debt in each of the last five years; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government does not hold this information.
The Government carefully monitors trends in household finances in order to inform policy making to help people manage their money well, encourage them to save, and access support if they need to get their finances back on track. It does so by working closely with the Money and Pensions Service (MaPS), the Financial Conduct Authority (FCA) and engages regularly with a range of other stakeholders on their research and findings.
The FCA conducts a biennial Financial Lives Survey of 16,000 adults which provides a comprehensive insight into the finances of the UK population. The latest findings from the survey were published in February 2021. MaPS monitor financial difficulty through an annual survey of 22,000 people. MaPS will publish the results of the 2021 Debt Need Survey early next year.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to support disabled children and their families to access health, education and care services during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government has to date provided the NHS with over £27bn to support its response to and recovery from Coronavirus, which includes the provision of healthcare services to disabled children. This is part of the overall £87bn support for health services since the start of the pandemic.
The government has also provided over £6 billion in un-ringfenced funding directly to councils to support them with the immediate and longer-term impacts of COVID-19, including in children’s social care.
We are increasing education funding for children with complex special educational needs and disabilities by nearly a quarter in two years, to £8 billion this year.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that free-to-use cash points are available in the places that they are needed.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, Payment Systems Regulator (PSR) and Financial Conduct Authority (FCA). The Group published an update on the actions of the Group’s members in July 2020. This included work led by the PSR and FCA to develop a comprehensive picture of cash access infrastructure across the UK.
With regards to ATMs, LINK (the scheme that runs the UK’s largest ATM network) has existing arrangements in place to protect free-to-use ATMs that do not have another free-to-use ATM or Post Office within one kilometre. LINK’s members have also made £5 million available to fund ATMs at the request of communities with poor access to cash. The PSR has powers to regulate LINK and is holding it to account over its commitment to protect the broad geographic spread of free-to-use ATMs.
The Government also continues to be fully supportive of the Post Office Banking Framework Agreement. The agreement allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK until December 2022. The terms of future Banking Framework Agreements are commercial decisions between industry and the Post Office. The Government will continue to engage with industry and the Post Office to ensure that that all customers, wherever they live, continue to have access to over the counter banking services.
Industry-led initiatives to support financial inclusion and access to cash are also underway. This includes the Community Access to Cash Pilots initiative which is taking place in nine locations across the UK. This initiative is trialling additional cash access facilities – including new ATMs, automated cash deposit facilities and cashback without a purchase – within selected pilot areas. These pilots are to test solutions for ensuring that communities can conveniently withdraw and deposit cash and to identify ways that basic banking services can be better delivered, that could be adopted in other locations. The Government looks forward to the outcomes of these pilots.
The Government has committed to legislate to protect access to cash and ensure that the UK’s cash infrastructure is sustainable for the long term. To progress this work, the Government published a Call for Evidence on Access to Cash in October 2020. The Call for Evidence sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to support the introduction of free-to-use deposit-taking ATMs across the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, Payment Systems Regulator (PSR) and Financial Conduct Authority (FCA). The Group published an update on the actions of the Group’s members in July 2020. This included work led by the PSR and FCA to develop a comprehensive picture of cash access infrastructure across the UK.
With regards to ATMs, LINK (the scheme that runs the UK’s largest ATM network) has existing arrangements in place to protect free-to-use ATMs that do not have another free-to-use ATM or Post Office within one kilometre. LINK’s members have also made £5 million available to fund ATMs at the request of communities with poor access to cash. The PSR has powers to regulate LINK and is holding it to account over its commitment to protect the broad geographic spread of free-to-use ATMs.
The Government also continues to be fully supportive of the Post Office Banking Framework Agreement. The agreement allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches in the UK until December 2022. The terms of future Banking Framework Agreements are commercial decisions between industry and the Post Office. The Government will continue to engage with industry and the Post Office to ensure that that all customers, wherever they live, continue to have access to over the counter banking services.
Industry-led initiatives to support financial inclusion and access to cash are also underway. This includes the Community Access to Cash Pilots initiative which is taking place in nine locations across the UK. This initiative is trialling additional cash access facilities – including new ATMs, automated cash deposit facilities and cashback without a purchase – within selected pilot areas. These pilots are to test solutions for ensuring that communities can conveniently withdraw and deposit cash and to identify ways that basic banking services can be better delivered, that could be adopted in other locations. The Government looks forward to the outcomes of these pilots.
The Government has committed to legislate to protect access to cash and ensure that the UK’s cash infrastructure is sustainable for the long term. To progress this work, the Government published a Call for Evidence on Access to Cash in October 2020. The Call for Evidence sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to require private creditors to cancel debt owed by developing countries during the covid-19 pandemic.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK recognises the debt burden faced by developing countries during the Covid-19 pandemic. Support for developing countries is a key priority for the UK’s G7 presidency this year, and this includes delivering effective debt treatments that free up fiscal space to respond to the pandemic.
We regularly work with our international partners in the G7, G20 and Paris Club on debt issues, including private sector participation in debt restructurings. As such, we are supportive of the full and swift implementation of the Common Framework. The Common Framework is a G20 agreement that brings together, for the first time, G20 creditors to participate in coordinated debt restructurings.
Under the Common Framework, private sector creditors will be required to implement debt restructurings on at least as favourable terms as official creditors. This agreement should pave the way for more efficient, equitable, and effective case-by-case debt restructurings, which will allow low income countries to benefit from a more transparent and responsive approach to seeking debt treatment.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an impact assessment of the potential effect of Budget 2021 on women working in the (a) wedding and (b) the hair and beauty industries.
Answered by Kemi Badenoch - President of the Board of Trade
The Treasury carefully considers the impact of its decisions on those sharing protected characteristics, including at Budgets and other fiscal events, in line with its legal obligations under the Equality Act 2010.
Measures announced at Budget which the wedding and hair and beauty sectors may benefit from include an extension of the furlough scheme until September; extensions to the Self Employment Income Support Scheme (SEISS); 12 months of relief from business rates; a new UK-wide recovery loan scheme; enhanced Time to Pay for taxes; a 12 month VAT cut; and cash grants to protects businesses. The Government recognises that employees in the wedding events sector, and the hair and beauty sector are more likely to be female. Therefore, in as much as these business support measures contribute to business survival, and thus the continued employment of these employees, these support measures will benefit women working in these sectors.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to support small and medium-sized businesses in the construction industry through the changes required as a result of the implementation of VAT reverse charge.
Answered by Jesse Norman
The Government recognised that the introduction of the reverse charge will have an impact on cashflow for some affected businesses in the construction sector, and provided a long lead in time. The measure has also been delayed twice to allow businesses more time to prepare and also in recognition of the impact of COVID-19. HMRC have published guidance on reducing cash flow impacts and have written to affected businesses on three occasions signposting where to obtain information and outlining the steps they need to take to prepare.
More broadly, the Government has provided a very substantial level of support to business through the various COVID-19 schemes.
All businesses and self-employed people in financial distress and with outstanding tax liabilities may be eligible to receive support with their tax affairs through HMRC's Payment Support service.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on the UK's fashion and textile sector of the decision to end the VAT Retail Export Scheme.
Answered by Kemi Badenoch - President of the Board of Trade
On 11 September 2020, the Government announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers) following the transition period. The following rules were implemented on 1 January 2021:
- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) can purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.
- Personal allowances apply to passengers entering Great Britain from any destination outside of the UK, with alcohol allowances significantly increased.
- The VAT Retail Export Scheme (RES) in Great Britain has not been extended to EU residents and has been withdrawn for all passengers.
- The concessionary treatment on tax-free sales for non-excise goods has been removed across the UK.
The Government published a consultation which ran from 11 March to 20 May 2020. During this time the Government held a number of virtual meetings with industry stakeholders to hear their views and received 73 responses to the consultation. The Government has also met and discussed these changes with many stakeholders following the announcement of these policies.
The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers. A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.
On 25 November 2020 the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the VAT RES.
Factoring in a higher-than-usual elasticity of 1.9 to account for spending on luxury goods, the OBR estimate that the withdrawal of the VAT RES will result in a significant direct Exchequer saving of around £400 million per year, once passenger numbers recover from the impacts of Covid-19. Based on the 1.2 million users of the scheme who received a refund in 2019, this includes an assumption that approximately 20,000 – 30,000 fewer tourists visit Great Britain a year. That is 0.07% of the 40 million visitors to the UK in 2019.
The OBR also looked at this package in the round when assessing the indirect impact on the economy – including the effects of extending duty-free sales – alongside the substantial support provided to the economy and retail industry.
Asked by: Lisa Cameron (Conservative - East Kilbride, Strathaven and Lesmahagow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) prosecutions and (b) convictions there have been for non-payment of the national minimum wage to garment factory workers since 1 January 2016.
Answered by Jesse Norman
HMRC enforces the National Minimum?Wage (NMW)?and?National Living Wage (NLW) in line with the law and policy set out by the Department for Business, Energy and Industrial Strategy (BEIS).
Breaches of NMW legislation are normally a civil (non-criminal) matter which attract penalties of up to 200% of the identified wage arrears and public naming.
Prosecutions can be lengthy and cause delays in recovering arrears for workers and do not necessarily guarantee payment. HMRC therefore balance recovering NMW arrears for workers as quickly as possible with the robust enforcement of the NMW when deciding whether to pursue prosecution. Consequently, prosecution is reserved for the most serious NMW offences involving obstruction, falsifying of documents or wilful failure to pay workers the minimum wage, and such cases are referred to the CPS who decide whether to prosecute.
There have been no prosecutions or convictions for the non-payment of the NMW to textile factory workers since 1 January 2016.
However, between 1 January 2016 and 19 October 2020 HMRC’s NMW team has investigated more than 100 textile trade employers recovering over £190,000 in wage arrears for over 400 textile workers, and issued penalties amounting to over £330,000.
HMRC recognise that there are a range of cross-agency risks in the textile sector supply chain, and have participated in a number of joint operations with other Government departments including the Gangmasters Labour Abuse Authority, Police, the Health & Safety Executive, Home Office Immigration Enforcement, Department for Work and Pensions and the National Crime Agency, to investigate all forms of labour exploitation.