Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the £160 million announced in Spending Round 2019 as a result of the Bew Review will be ringfenced for agriculture so that the Scottish Parliament can decide how it is allocated within that sector.
Answered by Rishi Sunak
The Chancellor announced at the recent Spending Round that we will provide £160m to the Scottish Government in 2020-21 in relation to historic allocations of Common Agricultural Policy ‘convergence’ funding. The additional funding will be ring-fenced for farmers and land managers in Scotland. The review led by Lord Bew of Donegore has considered a separate but related matter.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC takes to verify the income of people liable for child maintenance payments.
Answered by Elizabeth Truss
The Department for Work and Pensions (DWP) are responsible for the assessment of Child Maintenance payments, including the verification of the absent parent’s income. Upon request from DWP, HMRC provide information held on their National Insurance and PAYE Service, or their Self-Assessment Service. The information is made available under a Memorandum of Understanding, and is for the latest completed tax year.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to change the law on the income threshold requirement for buy-to-let mortgages by (a) lowering the threshold and (b) removing the requirement for the threshold to be more than the rent from the let property.
Answered by John Glen
The independent Prudential Regulatory Authority (PRA) is responsible for the regulation of the underwriting of buy-to-let mortgages. Under the PRA’s Supervisory Statement of September 2016, firms are required to conduct: an interest coverage ratio test which compares expected rental income to the monthly interest cost of mortgage repayments; and/or an income affordability test. Lenders must also take into account future changes to interest rates over a minimum period of five years. The purpose of this is to prevent lenders taking excessive risk by ensuring that the borrowers have the ability to repay the loan.
Beyond the requirements set out in the regulations, decisions concerning how lenders assess mortgage applications are commercial decisions for banks and building societies. I hope you can appreciate that it would be inappropriate for the Government to intervene in these decisions.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to review the Access to Banking Standard.
Answered by John Glen
The Government recognises that branch closures can be difficult for the customers affected and urges the banks to consider these concerns when making decisions on their branch network. That is why Government supports the Access to Banking Standard, and makes clear to the banks and building societies who have signed up that they should participate genuinely and with the spirit of the agreement, not just the letter, in mind.
The Government supports the Lending Standard’s Board’s monitoring and enforcing of the Standard, and welcomed their recent report on firms’ compliance with its requirements. The Government considers the current scheme of oversight to be working effectively at present.
The Government will continue to monitor the effectiveness of the Access to Banking Standard, and Lending Standards Board oversight of it, to ensure that it continues to strike the right balance between providing commercial flexibility and consumer protection.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has plans to allow builders of new nursery school buildings to zero-rate the VAT on building materials and services used in the construction.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government applies a zero of rate of VAT to the construction of charitable buildings. This includes nursery buildings where they operate as charities. While all taxes are kept under review, the application of further zero rates is strictly limited by EU law.
Future VAT rules will depend on the outcome of negotiations with the EU. Any future decisions on VAT will continue to be taken as part of the normal Budget process.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether any additional funding secured from the UK Government as a result of additional borrowing powers being triggered by the Scottish Fiscal Commission under the condition of a Scotland-specific economic shock is sent to the Scottish Government as a block or is administered directly by the UK Government.
Answered by Elizabeth Truss
Under the Scottish Government’s fiscal framework agreement, the Scottish Government can borrow up to £600m per year – within an overall limit of £1.75bn - for any observed or forecast shortfall in devolved or assigned tax receipts or demand-led welfare expenditure in the event of a Scotland-specific economic shock. Where this provision is triggered, the Scottish Government will be able to draw down resource borrowing from the National Loans Fund within the agreed limits as deemed appropriate to manage any volatility in their budgets.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has plans to ring-fence funding allocated from National Productivity Investment Fund to the devolved administrations.
Answered by Elizabeth Truss
The National Productivity Investment Fund (NPIF) was established to provide £31 billion of additional capital spending to areas critical for improving productivity – transport, digital infrastructure, housing and R&D. Where responsibility for these policy areas sits with the devolved administrations, such as housing and roads, they have received increases in their capital budgets as a result of the application of the Barnett formula to changes in spending in England. The devolved administrations have full control over how they allocate this funding.
The UK Government is also investing UK-wide in sectors where it has responsibility, including research and development funding, and investment in digital infrastructure.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the potential merits of introducing regional stock exchanges throughout the UK; and if he will make a statement.
Answered by John Glen
The Government conducted a consultation in 2010 that sought views on regional exchanges
As noted in the Government’s response almost all respondents to the consultation did not favour the introduction of such exchanges (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/253763/bis-10-1242-financing-business-growth-response.pdf).
There are no legislative barriers preventing market participants from setting up regionally-focused exchanges, provided they receive the required approvals from the Financial Conduct Authority.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much spending from the National Productivity Fund has resulted in Barnett consequentials funding to Scotland in (a) 2017-18 and (b) 2018-19.
Answered by Elizabeth Truss
The Scottish Governemnt have received Barnett Consequentials totalling £111.2 million (2017-18) and £189.0 million (2018-19) following allocations made to the National Productivity Investment Fund.
Asked by: Luke Graham (Conservative - Ochil and South Perthshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he next plans to meet representatives of the Clydesdale Bank to discuss rural branch closures.
Answered by John Glen
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors, including RBS, Lloyds and Clydesdale and Yorkshire Banking Groups, 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
The decision to open or close branches is a commercial matter, in which the Government does not intervene. However, the impact of closures on communities must be understood, considered and mitigated where possible.
The industry’s Access to Banking Standard, launched in May 2017, commits banks to ensure personal and business customers are better informed about branch closures and the reasons for them closing, along with the options they have locally to continue to access banking services, including specialist assistance for customers who need more help. The Access to Banking Standard is monitored and enforced by the independent Lending Standards Board.
99% of personal and 95% of banks’ business customers are now able to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter via its network of 11,600 branches. In February, I wrote to the Post Office and UK Finance requesting further details of their proposals to raise public awareness of the banking services available at the Post Office for individuals and SMEs. I look forward to receiving their proposals later this month.