Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to support (a) hospitality, (b) public house and (c) other businesses with energy prices.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government remains committed to supporting the whole business sector including hospitality, public houses and other businesses. The Energy Bills Discount Scheme (EBDS) provides all eligible businesses and other non-domestic energy users with a discount on high energy bills for 12 months from 1 April 2023 until 31 March 2024. It also provides businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.
Wholesale gas prices have now fallen to levels before Putin’s invasion. The new EBDS therefore strikes a balance between supporting businesses for a further 12 months and limiting taxpayer’s exposure to volatile energy markets. This provides long term certainty for businesses and reflects how the scale of the challenge has changed since September last year.
The government has had to make some difficult decisions this Budget to maintain economic stability and secure the public finances. The government has provided a series of cuts and freezes on alcohol duties in the past decade. The most recent freeze from Autumn Budget 2021, including the extension to 1 August 2023, represents a total tax cut of £2.7 billion over the next 4 years. Whilst we are raising rates by RPI, we have increased the value of Draught Relief to support pubs, meaning a pint of draught beer sold in a pub will not pay more duty from August.
We have provided extensive support to the hospitality and tourism sector through an over £8 billion reduction in VAT during the pandemic, and are also increasing and extending business rates support with a tax cut worth over £2 billion in 2023-24 for the retail, hospitality and leisure sectors. This will support around 230,000 businesses, including pubs, with 75 per cent relief off their business rates bill, up to a cash cap of £110,000 per business. Pubs will also benefit from the freeze to the business rates multiplier for 2023-24, a tax cut worth £9.3 billion over the next 5 years, meaning all bills are 6% lower than without the freeze.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of applying the Electricity Generator Levy to (a) water companies, (b) local authorities and (c) other organisations that generate energy for their own use on (i) water bills and (ii) council tax rates.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Tax matters, including the Excise Duties (Deferred Payment) Regulations 1992, are matters for HM Treasury and are kept under constant review, with any announcements made at fiscal events.
All required legislation relating to excise duties and Retained EU Law will be made via the Finance Bill (or subordinate tax legislation) which is usual and appropriate for tax provisions.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Electricity Generator Levy will only apply to net exports of energy from an organisation.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Tax matters, including the Excise Duties (Deferred Payment) Regulations 1992, are matters for HM Treasury and are kept under constant review, with any announcements made at fiscal events.
All required legislation relating to excise duties and Retained EU Law will be made via the Finance Bill (or subordinate tax legislation) which is usual and appropriate for tax provisions.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether organisations which generate energy for their own use will be included in the Electricity Generator Levy.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Tax matters, including the Excise Duties (Deferred Payment) Regulations 1992, are matters for HM Treasury and are kept under constant review, with any announcements made at fiscal events.
All required legislation relating to excise duties and Retained EU Law will be made via the Finance Bill (or subordinate tax legislation) which is usual and appropriate for tax provisions.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Electricity Generator Levy will apply to Food Waste Anaerobic Digestion generation.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Tax matters, including the Excise Duties (Deferred Payment) Regulations 1992, are matters for HM Treasury and are kept under constant review, with any announcements made at fiscal events.
All required legislation relating to excise duties and Retained EU Law will be made via the Finance Bill (or subordinate tax legislation) which is usual and appropriate for tax provisions.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of the company car tax rate on consumer demand for electric vehicles.
Answered by Robert Jenrick
Together with the wider support the government provides, the company car tax system aims to encourage the uptake and manufacture of ultra-low emission vehicles (ULEVs) by providing an incentive for motorists to choose zero-emission and other low CO2 emitting models.
In 2017, sales of ULEVs were 1.8% of all new cars, and the UK was the second largest market for ULEVs in the EU.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the joint report of the Environment, Food and Rural Affairs, Environmental Audit, Health and Social Care, and Transport Committees entitled Improving Air Quality, published on 15 March 2018, HC 433, what steps the Government has taken in response to the recommendation in that report to more closely align fiscal incentives with policy objectives on air quality.
Answered by Robert Jenrick
As confirmed in the Government response to the joint report of the Environment, Food and Rural Affairs, Environmental Audit, Health and Social Care, and Transport Committees, the Government is committed to tackling climate change and air pollution. HMT sees tax and spending policy as playing an important role in achieving this, alongside other approaches such as regulation. The full government response to this report has been published here: https://www.parliament.uk/business/committees/committees-a-z/commons-select/environment-food-and-rural-affairs-committee/news-parliament-2017/joint-air-quality-response-publication-17-19/
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment HM Treasury has made of the effect of the new Worldwide Harmonised Light Vehicle Test Procedure emissions standard and the use of correlated New European Drive Cycle values on Company Car Tax bands.
Answered by Robert Jenrick
At Autumn Budget 2017, the government announced that it would legislate, in a future Finance Bill, for the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) to be introduced from April 2020.
Officials are working with industry to determine the effect of the move to WLTP and the equivalent New European Driving Cycle values.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to announce the rates of company car tax which will apply from April 2021.
Answered by Robert Jenrick
From 2020/21, the government will be introducing eleven new company car tax bands for ultra-low emission vehicles (ULEVs). These changes were announced at Autumn Statement 2016 to provide certainty of the future tax liability for company car employers and employees.
The government aims to announce the company car tax rates three years in advance of implementation.
Asked by: Mark Pawsey (Conservative - Rugby)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will bring forward the introduction of lower company car tax thresholds for ultra low emission vehicles.
Answered by Robert Jenrick
From 2020/21, the government will be introducing eleven new company car tax bands for ultra-low emission vehicles (ULEVs). These changes were announced at Autumn Statement 2016 to provide certainty of the future tax liability for company car employers and employees.
The government aims to announce the company car tax rates three years in advance of implementation.