Asked by: Michelle Donelan (Conservative - Chippenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps his Department has taken to help tackle the effects of inflation on (a) consumers and (b) the price of goods.
Answered by Richard Fuller
The Government understands that people across the UK are worried about the rising cost of living and are seeing their disposable incomes decrease as they spend more on the essentials.
Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England. Since independence Consumer Prices Index inflation has averaged around the MPC’s 2% target.
In May, the Government announced over £15bn of additional cost of living support, targeted at those with the greatest need. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year, equivalent to 1.5% of GDP.
Asked by: Michelle Donelan (Conservative - Chippenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of (a) reducing fuel duty and (b) cutting the rate of VAT on petrol and diesel.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The temporary 5p cut to duty on petrol and diesel represents a £2.4 billion tax cut in 2022-23, to help consumers with high fuel prices.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. It would cost over £6 billion to cut VAT on road fuel from 20% to 5%.
The Government keeps all taxes under review.
Asked by: Michelle Donelan (Conservative - Chippenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, Energy and Industrial Strategy, if he will exempt small businesses from paying the Legal Entity Identifier.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The European Union’s updated Markets in Financial Instruments Directive (MiFID II), which will apply from 3 January 2018, introduces strengthened transaction reporting requirements on financial services firms. Under this new transaction reporting regime, financial services firms with transaction reporting obligations must identify their clients which are legal persons by using a Legal Entity Identifier. The use of a unique identifier improves the effectiveness of surveillance for possible instances of market abuse. National authorities cannot exempt small businesses from these EU requirements.
Asked by: Michelle Donelan (Conservative - Chippenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the rate of VAT for small businesses.
Answered by Jane Ellison
At Budget 2016, the VAT registration threshold was increased so that businesses with a turnover of £83,000 and below do not have to register for VAT. This relieves many smaller businesses of the burdens associated with VAT.
Asked by: Michelle Donelan (Conservative - Chippenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will estimate the effect on revenue to the Exchequer of allowing devolved local authorities to keep 100 per cent of the business rates raised from car parks in (a) the UK, (b) England and (c) Wiltshire in each of the next three years.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
On 5th October we announced plans to reform business rates in England, a change that will see local government retaining all revenue for the first time since 1990. The new powers will come with new responsibilities and the phasing out of grants from Whitehall to ensure that the reforms are fiscally neutral. Over the course of the next eighteen months we will be working with local government on the details of the scheme. Ahead of final decisions, it is too early to assess what the impact will be on individual areas.