Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of bringing forward legislative proposals to require lenders to take part in internationally agreed debt relief.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government does not currently have any intention to pursue a legislative approach that would force private lenders to participate in debt relief initiatives.
Any legislative approach would need to address a number of challenges. For example, legislating may increase the cost of finance for low-income countries or reduce the availability of finance to meet wider development goals.
The Government is instead prioritising the implementation of the Common Framework for Debt Treatments beyond the DSSI. The UK, along with the G20 and Paris Club, agreed the Common Framework to deliver a long-term, sustainable approach to dealing with debt vulnerabilities. Private sector participation on at least as favourable terms as bilateral creditors is a fundamental principle of the Common Framework. We are fully focused on ensuring that the private sector plays its part in any debt treatments under the Framework.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent progress he has made on legislating to protect access to cash; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains an important part of daily life for millions of people across the UK, and remains committed to legislating to protect access to cash.
As part of the Financial Services Act 2021, the Government made legislative changes to support the widespread offering of cashback without a purchase by shops and other businesses.
From 1 July to 23 September last year, the Government held the Access to Cash Consultation on further proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities.
The Government received responses to the consultation from a broad range of respondents, including individuals, businesses, and charities. The Government has carefully considered responses to the consultation and will set out next steps in due course.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the VAT regime for (a) residential off-street charging and (b) public charging on the uptake of electric vehicles.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has no plans to review the current rate of VAT applied to electric vehicle (EV) charging.
In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the 5 per cent reduced rate of VAT. However, electricity supplied at EV charging points in public places is subject to the standard 20 per cent rate of VAT.
Expanding the existing relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019-20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he made of the potential merit of equalising the VAT regime for (a) residential off-street parking and (b) public charging for electric vehicles.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has no plans to review the current rate of VAT applied to electric vehicle (EV) charging.
In order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the 5 per cent reduced rate of VAT. However, electricity supplied at EV charging points in public places is subject to the standard 20 per cent rate of VAT.
Expanding the existing relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019-20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of additional (a) customs charges and (b) other charges on people sending and receiving packages from the EU as a result of the UK having left the EU.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The extent to which any charges that may apply affect people sending and receiving packages is based on a range of factors, including individual business decisions and the origin and destination of the goods.
The UK-EU Trade and Cooperation Agreement seeks to reduce the costs for traders of customs processes introduced following the end of the transition period with the EU. It supports efficient customs arrangements and ensures that goods originating in the EU or UK are not subject to tariffs. For goods that do not meet requirements of the rules of origin, tariffs still apply.
Imports into the UK are subject to VAT, unless covered by a specific relief, while exports from UK businesses to EU customers are zero-rated for VAT purposes.
The EU VAT treatment of UK goods is a matter for the EU.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will issue a response to Early Day Motion 734, Barnett Consequentials from the Culture Recovery Fund.
Answered by Simon Clarke
The Barnett formula applies to changes in departmental DEL budgets, not when departments make spending or policy announcements.
The UK government has provided the Scottish Government with an additional £6.5 billion of Barnett-based funding this year. It is for the Scottish Government to decide how to allocate this funding across its devolved responsibilities, including how to provide support to the culture sector.
If the Treasury provides additional funding to departments in areas that are devolved in Scotland then the Scottish Government will receive additional funding through the Barnett formula. Final funding allocations will be confirmed at Supplementary Estimates.