Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to update to the List of named tax avoidance schemes, promoters, enables and suppliers of 1 December 2023, what recent assessment he has made of the potential impact of changes to the loan charge that came into effect on 5 April 2019 on the financial wellbeing of freelancers.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Loan Charge was independently reviewed by Lord Morse, who considered the impacts of the policy on individuals. The Government accepted 19 of his 20 recommendations. These changes, such as removing loans made before 9 December 2010 from the scope of the Loan Charge, reduced the impact of the policy and removed aspects which were of wider concern.HMRC puts support for those affected at the core of its work to collect the Loan Charge and bring cases to settlement.
HMRC can agree an affordable and sustainable instalment plan based on taxpayers’ specific circumstances and for as long as they need. HMRC can also refer taxpayers for free debt advice that is independent from HMRC.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of zero-rating for VAT school uniforms designed for children aged 14 or over.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Under the current VAT rules, all children’s clothing and footwear designed for young children who are less than 14 years of age, including school uniforms, attract a zero-rate of VAT, meaning that no VAT is charged on the sale of these items.
In addition, certain school uniform items may also benefit from a zero rate of VAT irrespective of size. For instance, garments which bear a prominent logo, crest or badge identifying them as part of the official uniform of schools catering exclusively for children under 14 years of age can be zero-rated.
The UK is one of only two countries among the 37 OECD member countries to maintain a VAT relief for children’s clothing, which costs the Exchequer £2 billion per year.
Going further would impose additional pressure on the public finances, to which VAT makes a significant contribution. Whilst we have no current plans to extend the existing zero rate, we nevertheless keep all taxes under review.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the revenue generated by charging VAT on school uniforms designed for children aged 14 or over in each of the last five years.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The requested information on VAT revenues is not available. HMRC does not hold information on VAT revenue from specific products because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the potential cost to the public purse of categorising uniforms as zero-rated for VAT.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The requested information on VAT revenues is not available. HMRC does not hold information on VAT revenue from specific products because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the policy costings of his decision to introduce 30 hours a week of free childcare for eligible working parents of children aged 9 months to 3 years are not included within HM Treasury's document entitled Spring Budget 2023: Policy Costings; and if he will publish those costings.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Policy Costings document sets out the assumptions and methodologies underlying costings for tax and annually managed expenditure (AME) policy decisions, where those policies have a fiscally significant impact on the public finances. These costings were submitted to the independent Office for Budget Responsibility (OBR) for scrutiny and were certified as part of the forecast process.
The Policy Costings document and process does not cover changes to Departmental Expenditure Limits (DEL) set at Spending Review 2021, including new childcare measures set out at Budget, as DEL spending is typically more predictable than AME. Forecasts for DEL spending are submitted to the OBR separately, and set out in Table 4.1 of the Budget document, which includes new childcare measures.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has approved gifts exceeding £300,000 made by (a) Government departments and (b) arms-length bodies through the (i) sale and (ii) lease of public assets at below market value since December 2019.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Managing Public Money (MPM) states that if an asset is sold or leased at a loss, the proceeds forgone (compared to market value) should be treated as a gift. Departments should treat this gift in line with MPM, approved by HM Treasury and disclosed in Annual Report of Accounts to Parliament via Written Ministerial Statement. Following a review, HM Treasury has not identified any approvals given for gifts above £300,000 in value through the sale or lease of an asset below market value since 2019.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to add hospices to the list of Energy and Trade Intensive Industries eligible for increased support under the Energy Bills Discount Scheme.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The new Energy Bills Discount Scheme will provide all eligible non-domestic energy users with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.
We have taken a consistent approach to identifying the most energy and trade intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for Energy and Trade Intensive Industries support. These thresholds have been set at sectors falling above the 80th percentile for energy intensity and 60th percentile for trade intensity, plus any sectors eligible for the existing energy compensation and exemption schemes.
All other eligible non-domestic users, including eligible hospices, will automatically receive a unit discount on their bills of up to £19.61/MW for electricity, and £6.97/MW for gas.
Additional financial support has been provided to Integrated Care Boards for inflation in addition to the energy support provided by the Government.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of abolishing VAT on household refurbishments.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the vast majority of goods and services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations.
There are no plans to change the VAT treatment of household refurbishments.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.41 of the Autumn Statement, CP 751 published on 17 November 2022, if he will publish the core schools budget figures after their adjustment to account for the removal of the compensation for employer costs of the Health and Social Care Levy.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Overall core schools funding will increase by £2.3 billion in both 2023-24 and 2024-25. After adjusting Spending Review 2021 budgets down to account for the removal of the compensation for employer costs of the Health and Social Care Levy, this brings the core schools budget to a total of £57.3bn in 2023-24 and £58.8 billion in 2024-25.
£bn | 2022-23 | 2023-24 | 2024-25 |
Spending Review 2021 Core Schools Budget | 53.8 | 55.3 | 56.8 |
Spending Review 2021 Budget With Health and Social Care Levy Funding Removed | 53.8 | 55.0 | 56.5 |
Additional Autumn Statement 2022 Funding | 0 | +2.3 | +2.3 |
Autumn Statement 2022 Core Schools Budget | 53.8 | 57.3 | 58.8 |
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.41 of the Autumn Statement 2022, published on 17 November 2022, if he will publish the methodology by which the core schools budget in England will receive an additional £2.3 billion of funding in 2023-24 and in 2024-25 and how that equates with the figures for schools published in table 2.1, after an adjustment is made for the removal of compensation for employer costs of the Health and Social Care Levy.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Overall core schools funding will increase by £2.3 billion in both 2023-24 and 2024-25. After adjusting Spending Review 2021 budgets down to account for the removal of the compensation for employer costs of the Health and Social Care Levy, this brings the core schools budget to a total of £57.3bn in 2023-24 and £58.8 billion in 2024-25.
£bn | 2022-23 | 2023-24 | 2024-25 |
Spending Review 2021 Core Schools Budget | 53.8 | 55.3 | 56.8 |
Spending Review 2021 Budget With Health and Social Care Levy Funding Removed | 53.8 | 55.0 | 56.5 |
Additional Autumn Statement 2022 Funding | 0 | +2.3 | +2.3 |
Autumn Statement 2022 Core Schools Budget | 53.8 | 57.3 | 58.8 |