Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department is taking steps to support Safe Hands plan holders financially impacted by its administration.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
I am sympathetic to all the Safe Hands customers who have lost money, following the collapse of the firm in 2022.
In January 2021, the Government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation as they seek to put their affairs in order.
Unfortunately, the customers of Safe Hands do not qualify for compensation under the Financial Services Compensation Scheme (FSCS) as the funeral plan industry did not become regulated by the FCA until 29th July 2022. It would not be appropriate for the Government to set the precedent or expectation that it will use taxpayer money to compensate consumers for the misconduct of unregulated firms or products which were not sold as FCA regulated at the time.
DWP's Funeral Expenses Payments scheme offers financial support for a simple funeral for those on certain income-based benefits or tax credits. The scheme covers the necessary burial or cremation costs and provides up to £1,000 for other expenses.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many commercial farms she has visited since announcing the changes to Agricultural Property Relief and Business Property Relief.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
The Government, HM Treasury officials, and Ministers meet with stakeholders on a regular basis.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Autumn Budget 2024 on levels of poverty.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is developing an ambitious and comprehensive strategy to reduce child poverty.
Autumn Budget 2024 announced measures to support households who face the greatest hardships. This support includes a new Fair Repayment Rate which caps deductions made through Universal Credit at 15% of the standard allowance. Before the budget, it was 25% meaning this change will benefit 1.2m families who will be better off by £420 per annum on average.
The government also committed £1 billion in 2025-26, including Barnett consequences, to extend the Household Support Fund (HSF) in England, and Discretionary Housing Payments (DHPs) in England and Wales. The HSF will help households facing the greatest hardship and financial crisis, including supporting them with the cost of essentials such as food, energy and water.
As shown in the analysis published alongside the Autumn Budget 2024, the impacts of government decisions are progressive and benefit households in the lowest income deciles the most in 2025-26. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Autumn Budget 2024 on levels of unemployment.
Answered by Tulip Siddiq
The Office for Budget Responsibility’s October 2024 forecast, which takes into account measures announced in the Budget, expects the unemployment rate will fall to 4.1% next year and remain low until 2029.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending deemed reseller rules to cover UK-established sellers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.
The changes were introduced to ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance.
Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support his Department provides to help (a) hair and (b) beauty businesses with VAT rates.
Answered by Nigel Huddleston
VAT is the UK’s third largest tax forecast to raise £176 billion in 2024/25, helping to fund key spending priorities, such as the NHS, education and defence.
The Government recognises that VAT can disproportionately impact particular sectors, including the hair and beauty sector. However, VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Any request for a new VAT relief, such as in the form of a reduced rate, should be viewed in the context of over £50 billion of requests the Government has received since the EU referendum.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of raising the luxury vehicles tax threshold for electric vehicles.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
As with all taxes, the Government keeps the Expensive Car Supplement under review, and any changes will be announced at a future fiscal event.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take steps to support people who lost (a) money and (b) assets due to the collapse of the Philips Trust Corporation.
Answered by Bim Afolami
The Philips Trust Corporation was not authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), and was not carrying out any regulated activities. As such, any losses are not covered by the Financial Services Compensation Scheme.
Consumers who have concerns about the role played by their bank or building society in relation to Philips Trust Corporation may be eligible to complain to the Financial Ombudsman Service (FOS). Whether a particular complaint is eligible or not is a matter for the FOS.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to tackle core inflation.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
High inflation is the greatest immediate economic challenge that we must address. That is why the Government has made it a priority to halve inflation this year, on the path back to the target of 2% CPI inflation.
While recent data shows halving inflation will not be easy the government is doing three key things to deliver on this plan. First, remaining steadfast in our support for the independent MPC at the Bank of England, as they take action to return inflation to target of 2%. Second, making difficult but responsible decisions on tax and spending so we are not adding fuel to the fire. Third, tackling some of the causes of high inflation, including by introducing the labour market package at the Spring 2023 Budget, as the relative resilience of the economy and the tightness in the labour market are reflected in current domestic inflationary pressures.
In May, the IMF confirmed that we have taken “decisive and responsible” action to bear down on inflation, and achieved the right balance of fiscal and monetary response, while also focusing on growing the economy.
Asked by: Matt Vickers (Conservative - Stockton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to help ensure that banks are not able to deny banking services to people because of their political beliefs.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Government has been unequivocal in its view that payment accounts should not be terminated on grounds relating to users’ exercising of their right to lawful freedom of expression or political beliefs. The Government strongly supports this fundamental right afforded to all people in British society. Regulation 18 of the Payments Accounts Regulations 2015 bans this so-called ‘debanking’ of people for their political views in relation to discrimination against UK consumers when they access a payment account provided by a credit institution.
The Government published a policy statement on 21 July that set out its plans to strengthen requirements relating to payment contract terminations. These changes will require reasons for termination to be given and increase the minimum notice period in cases of contract termination to 90 days (subject to limited exceptions) – giving customers more time to challenge a decision through the Financial Ombudsman Service or find a replacement bank.
In addition, the Chancellor has written to the FCA to request an urgent review into the matter of ‘de-banking’ more broadly. The FCA have agreed to undertake this review, and to share the evidence and findings with the Treasury. This will help inform whether further action is necessary to ensure nobody is being unfairly denied banking facilities.