Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce the national debt; and what assessment he has made of the potential implications for the economy of the size of the national debt.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Thanks to responsible decisions taken by this Government, the public finances are back on a sustainable path, with debt on track to fall from 2022-23 and decrease to 83.1% of GDP by the end of the Office for Budget Responsibility (OBR) March 2022 forecast. High debt leaves the UK’s public finances vulnerable to shocks. It is important to rebuild fiscal space in order to safeguard against future threats and allow the Government to support the economy as and when it is needed. The Government aims to achieve a falling trajectory for debt given this heightened level of risk, as well as evidence suggesting debt trajectories are important to macroeconomic performance.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to mitigate the impact of a potential rise in inflation to 11 per cent, as forecast by the Bank of England.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the impact that high inflation has on households and has taken significant action to support all families. The Government is providing over £15bn of additional support, building on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.
The Government has the tools and resolve to reduce inflation through three tools – independent monetary policy, fiscal responsibility and supply side reform. Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England. Historically, the MPC have met the inflation target and inflation has averaged exactly 2% since independence. The Government retains full confidence in the Bank of England to take the necessary action to get inflation back on target and ensure inflation expectations remain anchored.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of employers with an annual Class 1 National Insurance liability greater than £91,699 and less than £100,000 in the latest tax year for which data are available.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
For tax year 2020 to 2021, we estimate there are 4,800 employers with Class 1 National Insurance liabilities greater than £91,699 and less than £100,000. This represents around 0.5% of those who benefitted from the Employment Allowance in the 2020 to 2021 tax year.Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of removing plug-in hybrid vehicles from the additional vehicle tax levied on cars with a list price over £40,000 to help meet the UK's target on carbon neutrality in 2050.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Hybrid cars and vans, both non-plug in and plug in, have a role to play in reducing emissions from road transport during the transition to all new cars and vans being fully zero emission at the tailpipe. This is why hybrid vehicles receive a £10 annual discount on VED, although the greatest incentives are for zero-emission vehicles, which pay no VED.
Petrol, diesel and hybrid cars with a list price exceeding £40,000 also pay an additional supplement for five years as well as paying the standard rate, which means those who can afford the most expensive cars pay more than the standard rate imposed on other drivers. As over 80% of all new cars have a list price below £40,000, this was considered a suitable threshold for distinguishing the luxury end of the market. At Budget 2020, the Government announced that, from 1 April 2020, zero-emission cars registered prior to 1 April 2025 are exempt from this supplement.
As with all taxes, the Government keeps VED under review and any changes are considered by the Chancellor.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what action is being taken against people who promoted and operated schemes now subject to the Loan Charge.
Answered by Jesse Norman
The Government and HM Revenue and Customs (HMRC) are committed to continuing to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
On 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK. HMRC consulted on a package of measures to tackle promoters of tax avoidance schemes over Summer 2020.
On 12 November 2020, the Government announced further proposals to tackle promoters, which it will consult on this spring. Umbrella companies advising individuals to use disguised remuneration tax avoidance schemes are within the scope of the legislation that applies to promoters and others who facilitate tax avoidance. Where appropriate, they are subject to the range of measures laid out in HMRC’s strategy for tackling promoters of tax avoidance schemes.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of (a) doctors and (b) nurses who (i) are subject to the Loan Charge and (ii) have settled to avoid that Charge.
Answered by Jesse Norman
HMRC do not hold the requested estimates and do not routinely collect data on professions.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many armed forces veterans (a) are subject to and (b) have settled to avoid paying the Loan Charge.
Answered by Jesse Norman
HMRC do not hold the requested estimates and do not routinely collect data on professions.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HMRC is taking to tackle umbrella companies that advise their clients to use disguised remuneration schemes.
Answered by Jesse Norman
The Government and HM Revenue and Customs (HMRC) are committed to continuing to tackle promoters and operators of tax avoidance schemes. This includes challenging the entities and individuals who promote disguised remuneration loan schemes.
On 19 March 2020, HMRC published their strategy for tackling promoters of tax avoidance schemes. The strategy sets out HMRC’s work to date and outlines how HMRC will continue to take robust action against promoters of tax avoidance. The Promoter Strategy is available on GOV.UK. HMRC consulted on a package of measures to tackle promoters of tax avoidance schemes over Summer 2020.
On 12 November 2020, the Government announced further proposals to tackle promoters, which it will consult on this spring. Umbrella companies advising individuals to use disguised remuneration tax avoidance schemes are within the scope of the legislation that applies to promoters and others who facilitate tax avoidance. Where appropriate, they are subject to the range of measures laid out in HMRC’s strategy for tackling promoters of tax avoidance schemes.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many contractors have worked for HMRC while using disguised remuneration schemes in relation to the Loan Charge.
Answered by Jesse Norman
I refer the Honourable Member to the answer given on 1 December 2020 to UIN 119261.
Asked by: Paula Barker (Labour - Liverpool, Wavertree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the number of people facing bankruptcy as a result of the Loan Charge.
Answered by Jesse Norman
HMRC cannot provide an estimate for the number of people subject to the Loan Charge who have been declared bankrupt. There are many reasons why someone may be declared bankrupt. Moreover, HMRC are not always the only creditor; some individuals may be declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position.
HMRC only ever consider insolvency as a last resort and encourage taxpayers to get in contact to agree the best way to settle their tax debts. Anyone who is worried about being able to pay what they owe is encouraged to get in touch with HMRC as soon as possible on 03000 599110.