Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total receipts from (a) Business Rates and (b) Corporation Tax were in (i) 1990-91 and (ii) 2021-22.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Office for National Statistics (ONS) publishes these tax revenue statistics, which are set available on the ONS website here: Home - Office for National Statistics (ons.gov.uk).
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing the High Income Child Benefit charge to reflect trends in the level of inflation.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is committed to managing the public finances in a disciplined and responsible way.
The adjusted net income threshold of £50,000 for the High Income Child Benefit Charge, which impacts a relatively small minority of taxpayers, ensures the Government supports the majority of Child Benefit claimants, whilst helping to ensure the fiscal position remains sustainable.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support the financial services sector to increase its competitiveness.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In his Mansion House statement in July 2021, the Chancellor set out the Government’s vision for an open, competitive, green, and technologically advanced financial services sector.
A sweeping set of reforms to sharpen the UK’s competitive advantage in financial services is already underway. As set out in the Queen's Speech on 10 May, the upcoming Financial Services and Markets Bill will deliver on these commitments by implementing the outcomes of the Future Regulatory Framework (FRF) Review as well as a series of important initiatives underpinning the Government’s ambitious vision for the financial services sector.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made towards making the UK an attractive place for cryptocurrency companies to operate.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government set out at Fintech Week our firm ambition to make Britain a global hub for cryptoasset technology and investment. The Government wants to ensure firms can invest, innovate and scale up in this country. And the Government has announced a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve – our clear message to cryptoasset firms is that the UK is open for business.
These include committing to consult on a future regulatory regime later this year; legislating to bring stablecoins into payments regulation; setting up a ministerial-chaired Cryptoasset Engagement Group, bringing together key figures in industry; working with the Royal Mint to create a Non-Fungible Token; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he plans to take to help UK businesses maintain effective supply chains.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Many economies around the world are currently facing supply chain disruptions. This is due to a combination of global factors, including the strong recovery from the pandemic and the war in Ukraine.
The Government understands the pressure that this is placing on UK businesses, and we are in regular contact with business groups and suppliers about the challenges they are facing.
Where problems are global in nature, we will work with international partners to maintain effective supply chains and build greater resilience into trade networks. And in extraordinary circumstances, Government has helped domestically. For example, we have supported the haulage industry through HGV driver shortages and eased pressures on the movement of goods into and out of the UK. This package of support includes £32.5m support for improved lorry park facilities, to aid with retention in the sector.
However, we should also recognise that Government intervention is often not the solution to supply chain issues. Where supply faces constraints government spending can merely add further to price pressures rather than resolve then. Furthermore, businesses should not be perpetually reliant on taxpayer support and should adjust their business models in response to market pressures. For example, in the case of HGV drivers, better pay and conditions are required in the long-term and the private sector has a role to deliver this.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the rise in the cost of living, if he will make an assessment of the potential merits of business rate reform.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government concluded the review of the business rates system and published their final report as part of Autumn Budget 2021. The Review set out significant new measures, worth £7 billion over the next 5 years, to reduce the burden of business rates on firms, including a freeze in the multiplier, new support for improvements and green technology, and further relief for high street businesses. The Government are also committing to more frequent revaluations, which represents fundamental reform of the system, and will ensure that liabilities are more responsive to changing market conditions.
The announcements made at Autumn Budget 2021 build on over £16 billion of business rates support already provided to the retail, hospitality, and leisure sectors throughout the pandemic, including a business rates holiday for 2020-21 and a scheme worth £6 billion in 2021-22.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to tackle the flow of Russian money and assets through the UK economy.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Money obtained through corruption or criminality, including that linked to Russia is not welcome in the UK, and the Government is taking concerted action to combat the threat of illicit finance from source to destination.
In recent years, the Government published a landmark public-private partnership Economic Crime Plan. The Plan outlines a comprehensive national response to economic crime and sets out 52 actions being taken by both the public and private sectors to ensure the UK cannot be abused for economic crime. The private and public sector is making measurable progress in delivering the Economic Crime Plan and are on course to deliver 49 of the 52 actions set out in the Plan.
The Government is also bringing forward significant investment to tackle economic crime; the combination of last year’s Spending Review settlement and private sector contributions through the Economic Crime (AML) Levy will provide economic crime funding totalling around £400 million over the next three years.
Most recently, following the Prime Minister’s announcement in February, the Government has brought forward the Economic Crime (Transparency and Enforcement) Act to crack down further on dirty money and corrupt elites in the UK. The Act:
This is not all. The Government is working at pace to introduce a new dedicated Kleptocracy cell in the National Crime Agency. This will grow operational capability to combat serious and organised crime targeting corrupt elites through their hidden UK assets hidden; targeting the professional enablers of these corrupt elites; and supporting cross-government sanctions delivery and enforcement.
Finally, the Government has announced published details of further upcoming legislation to clamp down on money-laundering and illicit finance. This will include fundamental reform of Companies House, enhanced information sharing powers and new powers to seize crypto assets finance.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential impact of the proposals published in the Alcohol Tax Review on the UK-Australia free trade agreement.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government does not anticipate alcohol duty reforms to impact the UK-Australia free trade deal. All products will be taxed on the basis of strength. Therefore, Australian producers will pay the same tax rates as producers in every other country, including the UK.
The Treasury is continuing to engage with stakeholders, including the Australian Government, on these proposals, and will continue to keep those impacted updated on the progress of our review.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate the Government has made of the relative cost of production for (a) wine, (b) beer, (c) cider and (d) spirits.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Treasury considers production costs complex to estimate, as different businesses will have different business models, impacting production costs. Officials have received data from some stakeholders who have chosen to share this information, however given the commercial sensitivity of it, the Government is not in a position to share it publicly.
A consultation on the alcohol duty review ran from 27 October to 30 January, and the Treasury is now in the process of analysing responses. We will continue to monitor the economic impact of our reforms, and welcome feedback from stakeholders on this point.
Asked by: Matt Vickers (Conservative - Stockton South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to encourage businesses to invest.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Under the super-deduction, from April 2021 until the end of March 2023, companies can claim a 130% capital allowance on qualifying plant and machinery investments. It is the biggest two-year business tax cut in modern British history.
At Budget, the Government announced that the temporary £1 million Annual Investment Allowance level would be extended until the end of March 2023.
These measures provide more upfront support to help businesses across the UK invest and grow.