Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 1.30 of the Autumn Budget 2024, published on 30 October 2024, HC 295, whether she plans to hold a consultation on the proposed Infrastructure Strategy.
Answered by Darren Jones - Chief Secretary to the Treasury
I refer the Member for Sheffield Hallam to the reply given to the Members for Nuneaton and Warrington North, Parliamentary Questions Numbers 12277 and 12288.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the Bank of England introducing a dual interest rate policy with a lower rate for lending to green projects.
Answered by Bim Afolami
The Chancellor most recently reaffirmed the Monetary Policy Committee’s (MPC) remit at the Autumn Statement on 22 November 2023.
The Government recognises the importance of not overly expanding the MPC’s remit to allow the MPC to focus on its primary objective of price stability, as it rightly has. It is for the MPC to judge how it can best support the Government’s economic objectives using its monetary policy tools, subject to achieving its primary objective of price stability.
The Government has taken world-leading action to green the financial system, and we remain fully committed to that work.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the potential impact of climate change on food price inflation.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The UK government has set ambitious carbon budgets and net zero targets to play our part in reducing emissions and the subsequent impact that climate change will have across the economy.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the Bank of England’s progress on integrating (a) climate and (b) nature considerations into its operations.
Answered by Bim Afolami
The financial regulators’ primary focus must be to ensure the safety, soundness and integrity of the markets they regulate. While the government expects that the Bank will play a crucial role in supporting the achievement of the government’s net zero target, it is not their primary responsibility given many of the levers for change sit outside of financial services regulation.
However, the Financial Services and Markets Act 2023 introduced a new regulatory principle for the Financial Conduct Authority, Bank of England and Payment Systems Regulator to consider in their work. To further strengthen the UK’s regulatory regime relating to climate and the environment, the government has embedded the consideration of the UK’s climate and environmental targets across the full breadth of the regulators’ general functions on a statutory basis.
This regulatory principle seeks to cement the government’s long-term commitment to transform the economy in line with its target to reach net zero by 2050, and to make progress towards the government’s long-term environmental goals, by ensuring the regulators must have regard to the government’s commitment to achieve these targets when discharging their functions.
This principle does not create any specific requirements on firms. Rather, they are expected to inform the future work of the regulators.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the potential impact of the changes to business rates announced in the Autumn Statement 2022 on Sheffield City Council revenues.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
At Autumn Statement 2022, the Government announced a package of business rates support worth £13.6 billion over the next five years. This includes a freeze to the multiplier for 2023-24 and a Government funded Transitional Relief scheme to support businesses with increasing bills at the revaluation. The Government also announced further relief for the retail, hospitality and leisure sectors and targeted support for small businesses.
All English Local Authorities will be fully compensated for the loss of income as a result of these business rates measures and will receive new burdens funding for administrative and IT costs.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the approved mileage rates.
Answered by Alan Mak - Shadow Economic Secretary (Treasury)
The Government sets the Approved Mileage Allowance Payments (AMAP) rates to minimise administrative burdens. The AMAP rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates.
Employers are not required to use the AMAP rates. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than the AMAP rates. If an employee is paid less than the approved amount, they are allowed to claim Mileage Allowance Relief (MAR) from HMRC. However, if the payment exceeds the relevant AMAP rate, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
As with all taxes and allowances, the Government keeps the AMAP rates under review and any changes are considered by the Chancellor.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of cancelling the debt of (a) Mozambique and (b) other countries in southern Africa that have been heavily impacted by tropical storm Ana.
Answered by John Glen - Shadow Paymaster General
We recognise the significant impact of Storm Ana on Mozambique. It is clear that other countries, including Malawi and Madagascar, have also been severely affected.
If affected countries are facing significant debt vulnerabilities, they can – if eligible – request a treatment under the Common Framework for Debt Treatments beyond the DSSI. This was agreed by the UK, along with the G20 and Paris Club, to help deliver a long-term, sustainable approach for supporting low-income countries to tackle their debt vulnerabilities
For countries that make a request to the Common Framework, treatments can include both the reprofiling of debt or a full restructuring, which, depending on need, may entail debt cancellation. This should enable more efficient, equitable, and effective case-by-case restructurings, allowing low-income countries requesting debt treatment to benefit from a transparent and responsive approach.
In addition to this, the UK is exploring the development of innovative debt instruments that could provide automatic fiscal space in the event of a significant weather event or other natural disaster, to help increase the long-term climate resilience of vulnerable countries. The UK is actively calling for creditors and debtors to explore the introduction of these climate-resilient debt instruments.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure the Government’s environmental targets are included in any reform of Solvency II regulation; and if he will make a statement.
Answered by John Glen - Shadow Paymaster General
From the outset of the review of Solvency II, one of the guiding objectives has been to support insurance firms to provide long-term capital to underpin growth, including investment in productive assets and investment consistent with the Government’s climate change objectives.
The Government is also introducing sustainability disclosure requirements that will require firms to disclose their environmental risks, opportunities and impact. This will continue to be relevant in any reform of Solvency II legislation, again helping to meet the Government’s environmental ambitions.
The Government will consult further on Solvency II reforms in April.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will bring forward legislative proposals to allow people to reclaim the additional stamp duty charge where those people have (a) purchased a second home with the intention of selling the first, (b) been unable to sell that home as a result of cladding-related issues and (c) been unable to reclaim the three per cent additional property stamp duty charge paid on the purchase of the second property.
Answered by Jesse Norman - Shadow Leader of the House of Commons
A refund of the higher rate of SDLT paid can be claimed if an old main residence is sold within three years of the purchase of the new main residence. For most people, three years is enough time to sell a previous main residence. However someone who purchases a new main residence on or after 1 January 2017 will still be eligible to apply for a refund if exceptional circumstances meant they were unable to sell their previous main residence in three years and they sold the property as soon as possible after those exceptional circumstances ended.
Where a person is not permitted to sell a previous main residence, such as due to fire safety issues, the circumstances are likely to be considered exceptional. HMRC will consider each case on its own merits.
Asked by: Olivia Blake (Labour - Sheffield Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to (a) reduce beer duty and (b) financially support pubs.
Answered by Kemi Badenoch - Leader of HM Official Opposition
Alcohol duties are kept under review and the merits of a change to beer duty are considered at each fiscal event. The Government will outline the next stages of its plan to support UK businesses at the upcoming Budget.