Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of increasing the personal allowance threshold for pensioners to £15,000.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
As with all aspects of the tax system, the Government keeps the Personal Allowance under review and any decisions on future changes will be taken by the Chancellor in the context of the wider public finances.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of exempting state pension from tax; and if he will make an assessment of whether state pension should be classified as income.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Personal Allowance is currently set at a level high enough to ensure that those pensioners whose sole income is the full rate of the new State Pension or basic State Pension do not pay any income tax.
The Government keeps all aspects of the tax system under review and any decision on future changes will be made by the Chancellor in the context of the wider public finances.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of freezing the level of the tax-free Personal Allowance on the economy; and if he will make an assessment of the potential merits of increasing this level.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government is committed to keeping taxes low to support people to keep more of what they earn. The Personal Allowance has nearly doubled since 2010 and is over 20% higher in real terms.
As with all aspects of the tax system, the Government keeps the Personal Allowance under review and any decisions on future changes will be made by the Chancellor in the context of the wider public finances.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the (a) short and (b) long term impact of (i) extreme weather and (ii) storms on the economy.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Third National Adaptation Programme (NAP3) was published in July 2023. It set out policies and actions to respond to the 61 climate risks and opportunities identified in the independent Third Climate Change Risk Assessment (CCRA3), including risks arising from changing climatic conditions and extreme weather events. As part of CCRA3, the Climate Change Committee produced an analysis of the monetary valuation of risks and opportunities, as well as an analysis of the indicative costs and benefits of adaptation.
The Treasury continues to work to determine what additional research and analysis, including economic analysis, is required to ensure robust adaptation.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help increase the level of average savings of households.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government’s plan is working, with inflation down and growth forecast to improve. This allowed the government, at Spring Budget 2024, to cut taxes further for working people. These are the most important things that the government can do to support households to save.
At Spring Budget 2024, the Chancellor also set out further measures to support and encourage a savings culture across the UK and increase opportunities for people to save for the longer term. This included launching a consultation to introduce a new UK ISA with a £5,000 allowance for investments in UK assets and funds, in addition to the existing £20,000 ISA allowance, and the launch of British Savings Bonds, delivered through National Savings & Investment.
These measures sit alongside existing policies such as Help to Save, which supports people on low incomes to save, and the Lifetime ISA, which supports people to save for a first home or later life
The retail savings market currently offers a range of options to savers, who can access competitive rates on a variety of instant access and fixed-term products.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the Approved Mileage Allowance Payments rates in the context of increases in the cost of living and fuel prices.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The Government recognises that transport is a major cost for individuals. At Spring Statement 2022 the Government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre. In order to continue supporting all motorists, it will extend the 5p fuel duty cut, which is worth £100 to the average driver over the next year.
The Government has to balance support for individuals with the responsible management of public finances, which fund our essential public services. The AMAP rate is intended to create administrative simplicity and certainty by using an average rate. It will therefore necessarily be more appropriate for some drivers than others. It’s ultimately up to employers to choose what they reimburse.
As with all taxes, the AMAP rate is kept under review and any changes are considered and announced by the Chancellor.