Patricia Gibson

The Data Communications Company (DCC), the organisation responsible for the national smart metering infrastructure, has contracts in place for the provision of communications coverage to at least 99.5% of premises across its ‘North Region’, which covers Scotland.

The DCC is also required by licence conditions to seek to provide communications services to all premises where it is practicable and cost proportionate and is also required to assess opportunities to increase the overall level of communications coverage.

The UK Internal Market Bill ensures the UK can operate as a coherent internal market, guaranteeing UK companies can trade unhindered in every part of the UK while maintaining world-leading standards for consumers, workers, food and the environment.

The UK has some of the highest standards in the world on goods and some of the most robust standards on foods, with world-leading food, animal and plant health and animal welfare standards.

The Coronavirus Business Interruption Loan Scheme (CBILS) is part of a broad package of support for SMEs, including rates relief, grants and support for wage packages.

Businesses are not permitted to access more than one of either the Bounce Back Loan Scheme, CBILS, Coronavirus Large Business Interruption Loan Scheme or the Covid Corporate Financing Facility Scheme at the same time. However, the eligibility criteria for the CBILS does not require lenders to take into account other forms of government support that SMEs may be benefitting from, e.g. business rate reliefs or grants unrelated to the CBILS.

The Bounce Back Loan Scheme (BBLS) is part of a broad package of support for SMEs, including rates relief, grants and support for wage packages.

Businesses are not permitted to access more than one of either the BBLS, Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme or the Covid Corporate Financing Facility Scheme at the same time. The eligibility criteria for BBLS do not require lenders to take into account the other forms of government support that SMEs may be benefitting from, e.g. business rate reliefs or grants unrelated to the CBILS.

As stated in the Roadmap for Recovery, the Government anticipates that hair salons will be opened as part of Phase 3 in July, should the science confirm that it is safe to do so.

Hairdressers and other beauty businesses still remain closed in the current phase because the risk of transmission in these environments is higher due to the indoor environment and closer physical contact. This applies also to mobile hairdressers.

The Department for Business, Energy and Industrial Strategy leads the non-essential Retail Taskforce. Part of this taskforce is focussed on salons and non-clinical therapy. We are working with the sector to develop guidance on safe ways for them to open at the earliest point at which it is safe to do so. The guidance will be published in due course.

We understand the impacts that the pandemic and social distancing have on new parents, such as not being able to introduce their new baby to family and friends or attend parent and baby groups. While this is of course extremely difficult for all those affected, we believe these measures are necessary to protect lives.

During this difficult time mothers retain their generous entitlement to 52 weeks of Maternity Leave, allowing them to bond and care for their new child and to recover from birth. We have no plans to extend Maternity Leave at this stage.

Package travel agencies are required to comply with The Package Travel and Linked Travel Arrangements Regulations 2018, which protect consumers who have bought package holidays. Consumers are entitled to a refund?if forced to cancel a package holiday due to unavoidable and extraordinary circumstances, which should be issued?within 14 days, depending on the nature of the contract in place. BEIS officials have held regular discussions with travel and tourism sector representatives, travel businesses and consumer advocacy bodies to assess the impact of cancellations made in light of the covid-19 outbreak. Further information on the rights and responsibilities of consumers and businesses was published on 30 April by the Competition and Markets Authority who have also set up a covid-19 taskforce for consumers to register complaints.

Package travel agencies are required to comply with The Package Travel and Linked Travel Arrangements Regulations 2018, which protect consumers who have bought package holidays. Consumers are entitled to a refund?if forced to cancel a package holiday due to unavoidable and extraordinary circumstances, which should be issued?within 14 days, depending on the nature of the contract in place. Businesses are undoubtedly facing a significant and complex operational task in engaging with all their customers on refunds. The Government is working to find a balanced and a coordinated solution to the difficulties that have arisen as a result of covid-19 that supports the sector while protecting consumer rights.

Tax is a matter reserved to HM Treasury and the Chancellor. The Department for Transport has therefore conducted no impact assessment on the vat treatment of electric vehicle charging.

During the current lockdown, the Driver and Vehicle Standards Agency (DVSA) is offering a limited theory test and practical test service in England and Wales to NHS health and social care workers, emergency services and local council workers who need to both drive as part of their job and respond to 'threats to life' as part of their job. Mobile emergency workers who have a valid compulsory basic training (CBT) certificate and wish to apply for a motorcycle licence would also be eligible.

Mobile emergency worker tests cannot be currently offered in Scotland due to Covid restrictions set by the Scottish Government.

The DVSA will continue to offer mobile emergency worker tests once the current lockdown restrictions have been lifted, and will keep that service under review.

The Driver and Vehicle Standards Agency (DVSA) has measures in place to increase practical driving tests when it is safe for testing to resume. These include offering overtime and annual leave buy back to examiners, asking all those qualified to conduct tests, but who do not do so as part of their current day job, to return to conducting tests, and conducting out of hours testing (such as on public holidays).

In addition, the DVSA has started a recruitment campaign to increase the number of examiners to increase testing capacity and reduce the backlog as quickly as possible, whilst maintaining a COVID-secure service for customers and examiners.

During the current lockdown, the Driver and Vehicle Standards Agency (DVSA) is offering a limited theory test and practical test service in England and Wales to NHS health and social care workers, emergency services and local council workers who need to both drive as part of their job and respond to 'threats to life' as part of their job. Mobile emergency workers who have a valid compulsory basic training (CBT) certificate and wish to apply for a motorcycle licence would also be eligible.

Mobile emergency worker tests cannot be currently offered in Scotland due to Covid restrictions set by the Scottish Government.

The DVSA will continue to offer mobile emergency worker tests once the current lockdown restrictions have been lifted, and will keep that service under review.

The Driver and Vehicle Standards Agency (DVSA) has measures in place to increase practical driving tests when it is safe for testing to resume. These include offering overtime and annual leave buy back to examiners, asking all those qualified to conduct tests, but who do not do so as part of their current day job, to return to conducting tests, and conducting out of hours testing (such as on public holidays).

In addition, the DVSA has started a recruitment campaign to increase the number of examiners to increase testing capacity and reduce the backlog as quickly as possible, whilst maintaining a COVID-secure service for customers and examiners.

In Scotland, The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020 require the suspension of all driving tests and lessons in areas under protection level 4. Currently this includes all of mainland Scotland and the Western Isles. Therefore, the Driver and Vehicle Standards Agency (DVSA) is not able to offer key worker tests in Scotland.

The DVSA is working with its theory test contract provider, Pearson VUE, to respond to requests for theory tests in England and Wales from organisations such as Ambulance Authorities on behalf of frontline mobile emergency workers who require a driving licence to carry out duties in their employment role.

The DVSA is in the process of planning for the resumption of services and increasing test capacity when it is safe to do so. Arrangements will be announced in due course.

The maximum duration of two years between passing the theory test and a subsequent practical test is in place for road safety reasons; to ensure that a candidate’s knowledge is current. This validity period is set in legislation and the Government has no current plans to lay further legislation to extend it.

It is important that road safety knowledge and hazard perception skills are up to date at the critical point that they drive unsupervised for the first time. Those with theory test certificates expiring may have taken their test in early 2019. Since then, their lessons and practice sessions will have been significantly curtailed during recent lockdowns and it is likely that their knowledge base will have diminished. Research suggests that this would be particularly harmful for hazard perception skills, a key factor in road safety.

Ensuring new drivers have current relevant knowledge and skills is a vital part of the training of new drivers, who are disproportionality represented in casualty statistics. Taking all this into consideration, the decision has been made not to extend theory test certificates and learners will need to pass another theory test if their certificate expires.

Government is committed to tackling climate change and delivering our net zero commitment and Ministers regularly discuss this with Cabinet colleagues.

Last week we announced that Tees Valley will be the UK’s first Hydrogen Transport Hub, bringing together industry, academia and government to accelerate UK’s take up of green hydrogen. This aligns with wider plans to driver forward progress by funding 19 new hydrogen powered refuse trucks in Glasgow and starting trials for Britain’s first hydrogen powered train. We are committed to exploring all the options for green hydrogen across freight, buses, trains, maritime and aviation and ensuring the UK can leads the world in its deployment and use in transport applications.

(a) The Driver and Vehicle Licensing Agency (DVLA) has reconfigured one of its buildings to create additional space for contact centre staff and installed screens to maximise the number of staff answering calls. The contact centre’s opening hours have increased at weekends and will shortly be increasing during the working week.

(b) The Driver and Vehicle Standards Agency (DVSA) is responsible for driving tests. It has added extra call taking capacity to improve response rates. The practical driving test service is now open to all driving test candidates including key workers.

The Cycling and Walking Investment Strategy Safety Review Call for Evidence, published in March 2018, gathered information on how to tackle the safety issues that cyclists and pedestrians face, or perceive, when travelling on our roads, to support the Government’s aim of increasing cycling and walking.

The subsequent Government response set out a two-year plan of action which identified reviewing the guidance in The Highway Code to improve safety for cyclists and pedestrians as a top priority. The review of The Highway Code is therefore a direct response to that action.

You may be aware that the UK has not placed restrictions on the transit and transfer of seafarers and I have written to the International Maritime Organisation, the International Labour Organisation and the World Health Organisation on 23 March 2020, confirming that the UK will continue to meet its international obligations related to the transit and transfer of seafarers and highlighted that the UK is fully committed to the welfare of all seafarers regardless of their nationality, asking other States to follow this example.

I appreciate that restrictions remain in place, making it difficult for seafarers to reach their destination for crew change. I assure you that we are doing what we can to address those issues, working in partnership with industry, other Government Departments and overseas administrations to enable the freedom of movement needed to keep the industry operating.

I welcomed the framework recently developed by the International Chamber of Shipping and other organisations, which has been supported and circulated by the International Maritime Organisation and fully understands the need for safe crew changes around the world.

I am keen to see a resolution to this issue and understand that it is not possible to keep extending seafarers contracts, as this could have a detrimental impact on their health and well-being and potentially puts the flow of goods at risk. Whilst the safety and security of seafarers is the responsibility of the vessel’s operators, the Government is continuing to monitor the welfare of all UK seafarers and is working to support employers in their repatriation efforts for all non-essential staff.

I refer the Hon Member to the answer I gave on the 24^th February 2021 to question number 155395.

The Secretary of State for Work and Pensions has regular discussions with Cabinet colleagues, including the Home Secretary, on a range of issues.

The benefits and risks of using mesh for hernia repair have been considered in detail by clinicians and the professional bodies who represent them and there remains a clinical need for these devices.

The requirements of the medical device regulations are such that the manufacturer of the medical device must hold all relevant scientific and clinical evidence to demonstrate the safety and performance of their device before they can place the product on the market. For these types of devices, they must then obtain certification from an independent third-party conformity assessment body who will undertake a full review of all the manufacturers data and how it supports the claims being made. Once they are satisfied that the device is safe and performs as expected they will issue a certificate to the manufacturer confirming that they device complies with the regulations.

A UK-wide Medical Device Information System (MDIS) is being developed. We intend to begin a formal public consultation on the MDIS regulations later this year with the aim of laying the regulations in due course, subject to parliamentary time.

No such discussions have taken place or are planned to be held in the near future.

Competent Authorities responsible for the application of the health mark, are aware of the new form of the mark to be applied after the 31 December 2020 and have already taken steps to ensure new health marks are available to officials working in United Kingdom approved slaughterhouses.

The latest guidance from the National Institute for Health and Care Excellence (NICE) recommends two prescription medicines - Sativex – for the treatment of spasticity in Multiple Sclerosis patients, and Epidyolex – for the treatment of seizures associated with two rare forms of epilepsy. These are licensed cannabis-based products, which may be prescribed by specialist doctors, in cases where it is clinically appropriate and funded on the National Health Service in England. NICE is clear that there is a need for more evidence to support routine prescribing and funding decisions for unlicensed cannabis-based products on the NHS.

The National Health Service app and NHS website are being updated with relevant COVID-19 information throughout this pandemic, drawing on central guidance from the Cabinet Office, which has a cross-Government Guidance Coordination Team to ensure the most up-to-date and relevant information is made available, representing the latest scientific advice. All health and care content is driven through that process to our national products / platforms. In addition, the NHS website team continuously reviews content, both new and existing to reflect any changes in guidance or where required, to reflect ways the public can access health and care services during this crisis and take steps to limit the spread of infection.

The NHSX COVID-19 contact tracing app will assist with a well-established technique of contact tracing and works alongside the wider Test and Trace programme, which will help ease the lockdown in England and the rest of the United Kingdom. The NHS COVID-19 app provides proximity data for contact tracing - with the goal of slowing the spread of the virus by alerting people who may have been exposed to infection so they can take action to protect themselves, the people they care about and the NHS. We believe this could be important in helping the country return to normality, as we start to look to easing lockdown measures.

On 12 March 2020 the Prime Minister announced that the COVID-19 response was moving from the contain to delay phase. This phase has been initiated as there is now community transmission of the virus in the United Kingdom, i.e. transmission not directly related to travel; this has made interventions in ports of less relative importance. With the shift to the delay phase and commensurate policy changes the Public Health England port health approach has changed to a ‘warn and inform focus’.

It is difficult to estimate the number of people who have recovered from COVID-19, since the majority of testing has been for those with medical need, for example for people who are unwell in hospital. The Government does not collect data on people who have mild to moderate symptoms of COVID-19 at home.

The latest available data on the number of COVID-19 cases can be viewed at the following link:

https://www.gov.uk/guidance/coronavirus-covid-19-information-for-the-public

Cumulative case counts include patients who are currently unwell, those that have recovered and those that have died.

The Government has been clear that the reduced rate of VAT is a temporary measure. It is right that, as restrictions are lifted and demand for goods and services in the tourism and hospitality sectors increases, this relief is reduced and eventually removed in order to rebuild and strengthen the public finances. This policy will cost the Exchequer over £7 billion and, while the Government keeps all taxes under review, there are no plans to make the reduced rate of VAT permanent.

In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (5 per cent).

Electricity supplied at EV charging points in public places is subject to the standard rate of VAT (20 per cent). There has been no change to this policy and the Government has no plans to review these provisions.

Treasury officials are in regular contact with HMRC colleagues. In line with the practice of successive administrations, details of internal discussions are not normally disclosed.

HMRC do not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new. This UEL test for plant and machinery should be applied on the asset as a whole, rather than individual components; since for tax purposes the asset is depreciated as a single unit.

Treasury officials are in regular contact with HMRC colleagues. In line with the practice of successive administrations, details of internal discussions are not normally disclosed.

HMRC do not classify which assets should be written down at the main or special rate of writing down allowances. Instead, businesses should identify whether an asset they have acquired has a useful economic life (UEL) of more or less than 25 years when new. This UEL test for plant and machinery should be applied on the asset as a whole, rather than individual components; since for tax purposes the asset is depreciated as a single unit.

The Government has committed to legislate to protect access to cash and ensure that the UK’s cash infrastructure is sustainable for the long term. To progress this work, the Government published a Call for Evidence on Access to Cash in October 2020. The Call for Evidence sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.

The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, Payment Systems Regulator and Financial Conduct Authority. The members published an update on the actions of its members in July 2020. This included work led by the PSR and FCA to develop a comprehensive picture of cash access infrastructure across the UK.

During the COVID-19 pandemic, the Treasury has been working closely with regulators and industry to ensure customers continue to have access to essential banking services, including cash, while also protecting the safety of staff and customers. This has meant the vast majority of people have been able to access cash through the pandemic.

With regards to ATMs, LINK (the scheme that runs the UK’s largest ATM network) has existing arrangements in place to protect free-to-use ATMs that do not have another free-to-use ATM or Post Office within one kilometre. LINK’s members have also made £5 million available to fund ATMs at the request of communities with poor access to cash. The Payment Systems Regulator has powers to regulate LINK and is holding it to account over its commitment to protect the broad geographic spread of free-to-use ATMs.

The Government has committed to legislate to protect access to cash and ensure that the UK’s cash infrastructure is sustainable for the long term. To progress this work, the Government published a Call for Evidence on Access to Cash in October 2020. The Call for Evidence sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.

The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, Payment Systems Regulator and Financial Conduct Authority. The members published an update on the actions of its members in July 2020. This included work led by the PSR and FCA to develop a comprehensive picture of cash access infrastructure across the UK.

During the COVID-19 pandemic, the Treasury has been working closely with regulators and industry to ensure customers continue to have access to essential banking services, including cash, while also protecting the safety of staff and customers. This has meant the vast majority of people have been able to access cash through the pandemic.

With regards to ATMs, LINK (the scheme that runs the UK’s largest ATM network) has existing arrangements in place to protect free-to-use ATMs that do not have another free-to-use ATM or Post Office within one kilometre. LINK’s members have also made £5 million available to fund ATMs at the request of communities with poor access to cash. The Payment Systems Regulator has powers to regulate LINK and is holding it to account over its commitment to protect the broad geographic spread of free-to-use ATMs.

The Government has committed to legislate to protect access to cash and ensure that the UK’s cash infrastructure is sustainable for the long term. To progress this work, the Government published a Call for Evidence on Access to Cash in October 2020. The Call for Evidence sought views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system. The Government is considering responses to the Call for Evidence and will set out next steps in due course.

The Government created the Joint Authorities Cash Strategy Group in 2019, which has provided a forum for the public bodies to formally co-ordinate respective approaches to access to cash. This is chaired by HM Treasury and attended by the Bank of England, Payment Systems Regulator and Financial Conduct Authority. The members published an update on the actions of its members in July 2020. This included work led by the PSR and FCA to develop a comprehensive picture of cash access infrastructure across the UK.

During the COVID-19 pandemic, the Treasury has been working closely with regulators and industry to ensure customers continue to have access to essential banking services, including cash, while also protecting the safety of staff and customers. This has meant the vast majority of people have been able to access cash through the pandemic.

With regards to ATMs, LINK (the scheme that runs the UK’s largest ATM network) has existing arrangements in place to protect free-to-use ATMs that do not have another free-to-use ATM or Post Office within one kilometre. LINK’s members have also made £5 million available to fund ATMs at the request of communities with poor access to cash. The Payment Systems Regulator has powers to regulate LINK and is holding it to account over its commitment to protect the broad geographic spread of free-to-use ATMs.

On 25 November 2020, the Government and UK Statistics Authority (UKSA) published their response to the consultation on the timing of reform to the Retail Prices Index (RPI). Owing to shortcomings in its calculation, UKSA intends to bring the methods and data sources of the Consumer Prices Index including owner occupiers’ housing costs (CPIH) into RPI.

The Government and UKSA are mindful of the widespread use of RPI in the economy, and, as such, sought views in the consultation on the broader impacts of reform. The Government and UKSA received approximately 550 responses from members of defined benefit (DB) pension schemes whose benefits are linked to RPI.

It is apparent that some DB pension scheme members will be affected by UKSA’s reform. The effect of reform on the members of such schemes will depend on whether their benefits are linked to RPI under the trust deed and rules of the scheme. As noted in the consultation response document, the Pensions Policy Institute (PPI) estimates that the average reduction in lifetime income from an individual’s RPI-linked pension post-retirement could be 4 per cent for a woman and 5 per cent for a man. However, the PPI estimates that women will generally experience a greater lifetime reduction in overall pension benefit, as they live longer than men on average.

The announcement in the response by the Chancellor and UKSA Chair means that reform will not be implemented before 2030. The Government keeps the occupational pensions system under review and will continue to do so.

In making its decision (with regard to the timing of reform) the Government has had due regard to and complied with the requirements of the Public Sector Equality Duty as laid out in the Equality Act 2010

For further information please see the consultation response at: https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology.

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021.

This policy will cost over £2 billion. The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.

Within the Capital Gains Tax (CGT) system, private residence relief (PRR) exempts from CGT the gain a person may make when they sell a residential property that they have lived in as their main home.

In April, changes were made to reduce the final period exemption, in which a previous main residence always qualifies for CGT PRR, from 18 months to 9 months. The final period exemption is an ancillary relief intended to allow individuals who own another residence time to sell their property after they are no longer using their old main residence. This change was to target the relief better at owner occupiers and reduce the instances where people can accrue relief on two properties simultaneously.

The Government has no plans to change the length of the CGT Private Residence Relief (PRR) final period exemption.

Within the Capital Gains Tax (CGT) system, private residence relief (PRR) exempts from CGT the gain a person may make when they sell a residential property that they have lived in as their main home.

In April, changes were made to reduce the final period exemption, in which a previous main residence always qualifies for CGT PRR, from 18 months to 9 months. This change was to better target the relief at owner occupiers and reduce the instances where people can accrue relief on two properties simultaneously.

The Government has no plans to change the length of the CGT Private Residence Relief (PRR) final period exemption.

We remain committed to supporting as many borrowers as possible with inactive lenders move to a cheaper deal. The government has worked with the FCA to implement rule changes to its mortgage lending rules, removing the regulatory barrier that prevented some customers, who otherwise may have been able to switch, from accessing new products. Inactive lenders have now started contacting borrowers who have been struggling to switch, setting out that options may be available for them on the active market. I will monitor the situation and hope to see even more options available over the coming months.

The FCA recently confirmed additional options to support borrowers, including making intragroup switching easier and extending the window in which interest-only borrowers coming to the end of their term can continue making interest payments, without paying down the capital. These modified rules came into force on 23 October 2020. More information can be found here: https://www.fca.org.uk/news/press-releases/fca-confirms-measures-support-closed-book-and-interest-only-part-and-part-mortgage-borrowers.

UK Asset Resolution (UKAR) – the owner of the Northern Rock Asset Management mortgage portfolio - has worked to help customers looking for a better deal with another lender by;

• waiving all early redemption charges;
• providing an online ‘Deal Finder’ tool which allows customers to search the market to find and compare mortgages from other lenders;
• partnering with Mortgage Force who have a panel of brokers who can give impartial, whole of market mortgage advice; and
• referring customers to specialist brokers, such as HUB Financial Solutions, where advice fees are waived.

It is also worth noting that Norther Rock Asset Management’s Standard Variable Rate (SVR) has always been set in line with the SVRs of active lenders.

Under the current VAT rules, sun protection products are subject to the standard rate of VAT. High-factor sunscreen is on the NHS prescription list for certain conditions and is provided VAT free when dispensed by a pharmacist.

Expanding the scope of the current VAT relief would come at a cost to the Exchequer. While all taxes are kept under review, there are currently no plans to reduce VAT on sunscreen products.

Cleaning products are subject to the standard rate of VAT. Providing an exemption for these products would come at a considerable cost to the Exchequer and is not possible under the current legal framework. Although the Government keeps all taxes under review, there are no current plans to change the VAT treatment of these products.

Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.

- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.

In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum.

The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens.

The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.

Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

- Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

- Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.

- The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.

In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum.

The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens.

The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.

Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

- Passengers travelling from Great Britain to any destination outside the United Kingdom will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

- Personal allowances will apply to passengers entering Great Britain from a destination outside of the United Kingdom, with alcohol allowances significantly increased.

- The VAT Retail Export Scheme in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.

Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

- Passengers travelling from Great Britain to any destination outside the United Kingdom will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

- Personal allowances will apply to passengers entering Great Britain from a destination outside of the United Kingdom, with alcohol allowances significantly increased.

- The VAT Retail Export Scheme in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.

Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

- Passengers travelling from Great Britain to any destination outside the United Kingdom will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

- Personal allowances will apply to passengers entering Great Britain from a destination outside of the United Kingdom, with alcohol allowances significantly increased.

- The VAT Retail Export Scheme in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

- The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast.

The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.

The Government wishes to encourage pension saving, to help ensure that people have an income, or funds on which they can draw, throughout retirement. This makes pensions tax relief one of the most expensive reliefs in the personal tax system. In 2017/18 income tax and employer National Insurance Contributions relief cost £54 billion.

The Government therefore imposes a charge on early withdrawals, which can be from 40% to 55% depending on the circumstances, both to recoup its investment through tax relief and to provide individuals with a strong incentive to save through their pension for the long-term.

It is for these reasons that the Government does not have any plans to remove tax on pension payments in response to this outbreak. As with all tax policy, this will be kept under review.

The Government is in continual dialogue with the insurance sector regarding their contribution to the handling of this unprecedented situation. The Government is also working closely with the Financial Conduct Authority (FCA) to ensure that the rules are being upheld during this crisis.

The FCA rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.

Customers who feel that they have not been treated fairly should first make a formal complaint to their insurer. If they then feel that their complaint has not been dealt with satisfactorily, they are able to refer the matter to the Financial Ombudsman Service (FOS), an independent body set up to provide arbitration in such cases. The FOS can help micro-enterprises with annual turnover sheets that do not exceed €2 million, and small businesses with turnover that does not exceed £6.5 million. The decision of the FOS is binding on insurers up to £350,000.

If customers would like to make a general complaint about the practice of deducting small business grants from the value of insurance settlements, the FCA would be happy to hear from them through their consumer support service.

While the FCA can’t resolve individual disputes and will not normally be able to discuss their investigations or findings with the person making the complaint, they can take any information provided into account as a part of their wider monitoring of practices in the sector.

The Government remains committed to helping businesses and workers through the present very difficult time, and has announced unprecedented support, including a range of grant and tax deferral schemes, and £300 billion of guarantees, equivalent to 15 per cent of UK GDP.

The terms on which transaction fees for card purchases may be refunded are a commercial arrangement between businesses and their acquirers (the financial services firms which process card payments on behalf of businesses). Some acquirers are taking voluntary measures to support their business customers, for example through waiving fees, and the Government welcomes such action.

The Government recognizes the challenges faced by households as a result of COVID-19. This is why the Government has announced unprecedented support for public services, businesses and workers to protect them against the current economic emergency.

The Government has not delayed the introduction of WLTP. WLTP strengthens the link between the vehicle tax system and the true environmental impact of car purchasing decisions as well as allowing consumers to make more informed decisions between model variations. From 1 January 2021 only WLTP emissions figures will be shown on registration documents for new cars.

However, to ease the transition to WLTP, company car tax appropriate percentages for effected vehicles have been reduced for two years so company car drivers do not see a significant increase in their tax liabilities.

The Seafarer’s Earnings Deduction (SED) offers a 100 per cent reduction in income tax on maritime employment income for UK and EEA resident seafarers who have a qualifying period of time absent from the UK. The qualifying period must be made up of at least 365 days, but return visits to the UK during that time up to a maximum of 183 consecutive days can count towards the qualifying period. This is among the most generous reliefs available to seafarers worldwide.

The COVID-19 pandemic is an unprecedented interruption to many industries and businesses, and the Government has announced a broad range of support including the Coronavirus Job Retention Scheme, the Coronavirus Self-Employment Income Support Scheme, and mortgage holidays for homeowners and landlords.

The Government will keep all taxes under review.

The Government has announced a range of measures to help individuals and businesses through the COVID-19 pandemic, including grants, loans and relief from business rates worth more than £300 billion. On 20 March, the Government announced that UK VAT registered businesses can defer VAT payments due with their VAT returns in the deferral period until March 2021.

While the Government keeps all taxes under review, there are currently no plans to apply a credit to VAT accounts.

The Government consulted in 2018 on how the design of the VAT registration threshold, currently set at £85,000, could incentivise growth better.

The results of the call for evidence did not present a clear option for reform.

While there are no plans to make changes to the design of the VAT threshold, the Government continues to keep all taxes under review.

Details of the call for evidence are available online: https://www.gov.uk/government/consultations/vat-registration-threshold-call-for-evidence.

In line with the practice of successive administrations, details of ministerial discussions are not normally disclosed.

Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors, including banks, as part of the process of policy development and delivery.

The Government recognises that widespread free access to cash remains extremely important to the day-to-day lives of many consumers and businesses in the UK.

The Payment Systems Regulator (PSR) regulates LINK, the scheme that runs the UK’s largest ATM network. The PSR has used its powers to hold LINK to account over its commitments to protect the broad geographic spread of free-to-use ATMs in the UK.