Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of exempting (a) employers of people aged 25 and (b) people aged under 25 from national insurance contributions to (i) boost youth employment and (ii) increase and improve training of employees under 25.
Answered by Jesse Norman
The Government has taken significant action to reduce the cost of employing young people. Since April 2016, employers do not pay employer National Insurance contributions (NICs) for apprentices under the age of 25 on earnings up to the Apprentice Upper Secondary Threshold (£967 a week in 2021-22). This builds on action the Government has already taken to remove employer NICs on those aged under 21 up to the Upper Secondary Threshold (£967 a week in 2021-22) in April 2015.
The Government is committed to keeping taxes low to support working people to keep more of what they earn and to encourage individuals to progress, ensuring work always pays. In April 2020, the NICs Primary Threshold – the level of earnings at which employees start paying NICs – was increased to £9,500. This provided a tax cut to about 31 million people, with a typical employee saving about £104. As announced at the recent Spending Review, the Primary Threshold will increase to £9,568 in 2021-22.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will confirm that business rates for hospitality and non-essential retail businesses will be waived for a further 12 months covering the 2021-22 financial year to aid them in their recovery from the covid-19 outbreak.
Answered by Jesse Norman
This year the Government has provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties due to the direct adverse effects of COVID-19, worth about £10 billion, and has frozen the business rates multiplier for all businesses for 2021-22.
The Government is considering options for further COVID-19 related support through business rates reliefs. In order to ensure that any decisions best meet the evolving challenges presented by COVID-19, the Government will outline plans for 2021-22 reliefs in due course.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend stamp duty holiday period beyond 31 March 2021 to protect employment in the property industry.
Answered by Jesse Norman
The temporary SDLT relief was designed to create immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This will also support the jobs of people whose employment relies on custom from the property industry, such as retailers and tradespeople.
The Government will continue to monitor the market. However, as the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend it.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect in Dudley North on confidence among high street businesses and shoppers of extending business rates relief for the hospitality, retail, and leisure sector for an additional year.
Answered by Jesse Norman
This year the Government has provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties due to the direct adverse effects of COVID-19, worth about £10 billion, and has frozen the business rates multiplier for all businesses for 2021-22.
The Government is also considering options for further COVID-19 related support through business rates reliefs. In order to ensure that any decisions best meet the evolving challenges presented by COVID-19, the Government will outline plans for 2021-22 reliefs in due course.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the IR35 reforms for twelve months in light of the effect on businesses of the covid-19 outbreak.
Answered by Jesse Norman
The Government has been clear that the reform of the off-payroll working rules will be introduced on 6 April 2021. The Government remains committed to introducing this policy in order to address the unfairness of non-compliance with the existing off-payroll working rules. Organisations should continue to prepare for the implementation of the reform. Since the reform was delayed in April 2020, Parliament has passed legislation enacting the reform from April 2021.
Many businesses have already made significant preparations to ensure they are ready for the reform and HMRC are committed to supporting businesses and individuals in the run up to and beyond the reform being implemented. HMRC are providing webinars, workshops and one-to-one calls as well as publishing updated guidance and factsheets to enable businesses to prepare.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to reassess the calculation of the compensation payments made to people affected by the Equitable Life scheme.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Equitable Life Payment Scheme has been wound down and further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme. There are no plans to reopen any previous decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the (a) adequacy and (b) effectiveness of Government support for hospitality businesses during the covid-19 outbreak; and whether businesses that were ineligible for Government covid-19 support during the first national lockdown may be eligible for support retrospectively.
Answered by Kemi Badenoch - President of the Board of Trade
The Government understands that this is a very challenging time for the UK’s hospitality sector, and it recognises that the hospitality sector has been disproportionately impacted by the pandemic. Throughout the crisis the Government’s priority has been to protect lives and livelihoods. The Government has acted to deliver support to this sector through:
These measures have kept people in work, supported their incomes and supported businesses, delivering one of the most generous and comprehensive packages of support globally. However, as measures to control the virus change, it is right that Government support should also evolve. The Government keeps all policies under review, and will continue to work with businesses and representative groups to inform our efforts to support the hospitality sector.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to tackle the effect of the covid-19 outbreak on levels of household debt in Dudley North constituency.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme, the Coronavirus Job Retention Scheme, and temporary welfare measures
The Government has extended the Coronavirus Jobs Retention Scheme until 30 April 2021. Eligible employees will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
The Government has increased the overall level of the third grant under the Self-Employment Income Support Scheme to 80 per cent of average trading profits, meaning that the maximum grant available has now increased to £7,500
The Government has provided Local Authorities with £500 million to support people who may struggle to meet their council tax payments this year. The Government expects that this will provide all recipients of working age local council tax support with a further reduction in their annual council tax bill of £150 this financial year
These measures are in addition to the changes this Government has made to make the welfare system more generous, worth over £7 billion according to recent OBR estimates. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to Local Housing Allowance rates
We have also worked with mortgage lenders, credit providers and the Financial Conduct Authority to ensure the financial sector provides support for people across the UK to manage their finances by providing payment holidays on mortgages and consumer credit products
The Government has also provided unprecedented support for businesses impacted by the COVID-19 pandemic. This support includes the Coronavirus Business Interruption Scheme, Coronavirus Large Business Interruption Scheme, Bounce Back Loan Scheme and the Future Fund which, as of 13 December, have collectively supported over 1.5 million businesses with facilities worth over £68bn. The Chancellor has announced that the Government has extended the application deadline for these schemes to a single date, 31 January 2020, meaning that even more businesses will have access to financial support
To help people in problem debt get their finances back on track, an extra £37.8 million support package is being made available to debt advice providers this financial year, bringing this year's budget for free debt advice in England to over £100 million
In May, the Government also announced the immediate release of £65 million dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties
From May 2021 the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.
Data on levels of over-indebtedness in Dudley North was last published in 2018 by the Money and Pensions Service (MaPS), who continue to fund local delivery of debt advice through Dudley Citizens Advice. MaPS will be publishing updated figures in 2021.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce the (a) administrative and (b) financial burden of business rates on retail and hospitality businesses once the business rates holiday expires in April 2021.
Answered by Jesse Norman
The Government has supported retail, hospitality and leisure businesses in England with over £10 billion of business rates relief. It will continue to look at how to adjust its support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country. The Government is conducting a fundamental review of business rates and will outline plans for future business rates reliefs in the New Year.
Asked by: Marco Longhi (Conservative - Dudley North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to support veterinary practices affected by the covid-19 outbreak through business rate relief.
Answered by Jesse Norman
The Government has provided enhanced support through business rates relief to businesses occupying properties used for retail, hospitality and leisure given the direct and acute impacts of the COVID-19 pandemic on those sectors.
The Ministry of Housing, Communities and Local Government has published guidance for local authorities on eligible properties. As set out in the guidance, support is targeted at premises that are wholly or mainly being used as shops, restaurants, cafes, drinking establishments, cinemas and live music venues; for assembly and leisure; or as hotels, guest and boarding premises and self-catering accommodation. It is for local authorities to determine eligibility for reliefs, having regard to guidance issued by the Government.
A range of further measures to support all businesses, including those not eligible for the business rates holiday, such as veterinary practices, has also been made available.