Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to support (a) low and (b) middle-income households with the cost of living.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Living standards, as measured by Real Household Disposable Income per capita, are expected to increase by an annual average of 0.5% over this parliament (Q3 2024 – Q2 2029). This is in stark contrast to the previous parliament which was the worst for living standards growth since ONS records began in 1955.
The Government has set out a Plan for Change, outlining our ambitious yet achievable milestones, including raising living standards in every part of the United Kingdom to ensure working people have more money in their pockets.
Specific actions already taken by the Government include: increasing to the National Living Wage from April 2025; extension of the Household Support Fund and Discretionary Housing Payments in England and Wales in 2025-26; and introduction of a new Fair Repayment Rate from April 2025 to cap debt repayments made through Universal Credit.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what role a) climate and b) nature experts perform in the creation of economic policy in her Department.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HM Treasury works across government to leverage expertise on climate and nature issues. HM Treasury also engages extensively with external stakeholders to inform related economic policy, as we recognise the value of incorporating expertise from outside government in addition to our internal capability.
The Green Book requires HM Treasury and other government departments to assess the climate and environmental impacts of policy proposals as part of their appraisal of costs and benefits. Within that, the Department for Environment, Food and Rural Affairs has issued supplementary guidance for policy makers to consider the value of a natural capital approach. Similarly, the Department for Energy Security and Net Zero has issued supplementary guidance on the valuation of energy usage and greenhouse gas emissions.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to increase Real Household Disposable Income per person in Newcastle upon Tyne East and Wallsend constituency.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Real Household Disposable Income (RHDI) per capita is a measure of UK living standards. The main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment. Growth must be felt in every nation and region. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament.
In its October 2024 Economic and Fiscal Outlook, the Office for Budget Responsibility forecasts living standards, as measured by RHDI per capita, to grow by an annual average of 0.5% over the parliament.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made any assessment of the potential impact of duty free arrivals stores on the revenue generation of (a) UK travel hubs, (b) Newcastle International Airport and (c) other regional airports.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Treasury does not hold data relating to individual airports’ sales and revenue.
Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution. Tax generated by the Government helps fund key spending priorities such as important public services, including the NHS, education, and defence.
Although there are no plans to introduce a duty-free on arrival scheme, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of how much and what proportion of annual revenue generated by (a) Newcastle International Airport and (b) other regional airports is non-aeronautical; and if he will make an assessment of the potential impact of introducing duty free stores on arrivals on that level of revenue.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Treasury does not hold data relating to individual airports’ sales and revenue.
Duty-free on arrival would place additional pressure on the public finances to which excise duty makes a significant contribution. Tax generated by the Government helps fund key spending priorities such as important public services, including the NHS, education, and defence.
Although there are no plans to introduce a duty-free on arrival scheme, the Government keeps all taxes under review and welcomes representations to help inform future decisions on tax policy, as part of the tax policy making cycle and Budget process.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the European Commission's policy document entitled Review of the VAT rules applicable to travel and tourism sector: meeting with stakeholders, published on 19 October 2022, if he will make an assessment of the potential impact of the proposed introduction of arrivals duty free in the EU on trends in the level of departure sales at UK airports.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The UK has extended airside duty-free shopping to all passengers leaving the UK, including those travelling to the EU, meaning passengers can benefit from duty-free shopping in UK airports before travelling to their destination.
Whilst the Government has no plans to introduce duty-free for arrivals in the UK, we keep all tax policy under review and consider all available evidence.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make a comparative assessment of the potential impact of personal allowances on bringing excise and non-excise into the (a) UK and (b) EU on tax revenues.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Passengers arriving in Great Britain from outside the UK, and those arriving in Northern Ireland from outside the EU do not need to make a formal declaration for goods that fall within the allowances.
Consequently, we do not hold any information in relation to the tax revenue on goods brought into the UK that are within the permitted allowances. We also do not have access to information on EU tax revenue.
Therefore, we are unable to make a comparative assessment of the potential impact of personal allowances on UK and EU tax revenues.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what was the (a) value and (b) volume of (i) excise and (i) non-excise goods brought into the UK for personal use via the permitted personal allowances were in each year since 2012.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Passengers arriving in Great Britain from outside the UK, and those arriving in Northern Ireland from outside the EU do not need to make a formal declaration for goods that fall within the allowances.
Consequently, we do not hold any information in relation to the value and volume of excise and non-excise goods brought into the UK that are within the permitted personal allowances.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the potential effect of the phasing out of Government covid-19 support on the number of the self-employed; and whether he has commissioned research on the impact of that matter on the employment rate.
Answered by Lucy Frazer
The Self-Employment Income Support Scheme (SEISS) provided unprecedented support to self-employed people who met the eligibility criteria. As of 4 November 2021, the scheme had supported 2.9 million people through 10.4 million grants worth £28.1 billion.
As set out in the Plan for Jobs Progress Update, published on 13 September 2021, the economy is now in a stronger position than it was last autumn, and the labour market is in a stronger position too. As the economy has reopened the jobs market has recovered, vacancies are at record highs, and the success of the Government’s vaccine programme has allowed us to lift almost all restrictions.
That is why it is right that the Government has wound down its temporary pandemic support, while continuing to support businesses to invest in the recovery and supporting people into new jobs. At the start of this crisis, unemployment was expected to reach 12 per cent or more. It is now expected to peak at less than half of that level, at 5.2 per cent. That means more than two million fewer people are expected to be out of work than previously feared. As we move to a new phase of the Plan for Jobs, the Government will continue to maximise employment across the country, create high quality, productive jobs, and deliver the skills that people, businesses and the economy need to thrive as we build back better.
HMRC and HM Treasury will also carry out an evaluation of the SEISS to help inform future policymaking and delivery. The self-employment data necessary to carry out a full SEISS evaluation will not be available until 2023, upon HMRC’s receipt of Self-Assessment returns.
Asked by: Mary Glindon (Labour - Newcastle upon Tyne East and Wallsend)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising the Employment Allowance in order to support small employers to offer (a) more roles and (b) higher wages.
Answered by Lucy Frazer
The Government has no current plans to increase the Employment Allowance (EA). The EA has already been significantly increased since its introduction in 2014. In April 2020, the Government increased the EA from £3,000 to £4,000 and focused the relief on helping smaller businesses take on extra staff, fulfil their potential, and boost employment. This increase benefitted around 510,000 businesses, of which 65,000 businesses were estimated to be taken out of paying National Insurance contribution bills entirely.