Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether (a) HMRC and (b) his Department consulted with the Insolvency Service (a) before and (b) after his decision at the 2018 Budget to make HMRC a secondary preferential creditor in insolvencies.
Answered by Mel Stride - Secretary of State for Work and Pensions
In line with the Government’s commitment to open and consultative policy making, the Government regularly engages with a wide variety of stakeholders to ensure policy changes are well informed and based upon the best available evidence.
The Government is currently consulting on the detailed policy design for this measure to ensure the changes work as intended. The consultation closes on 27 May and the Government is encouraging financial services businesses, lenders and insolvency practitioners to respond. The Government has already held discussions with UK Finance (the representative body for the banking and finance industry), the Insolvency Service, and R3 (the representative body for insolvency practitioners) as part of this consultation process.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to replace shipwork end-use relief after it expires in April 2019.
Answered by Mel Stride - Secretary of State for Work and Pensions
Government recognises the importance of the oil and gas industry to the UK’s economy. Her Majesty’s Revenue & Customs (HMRC) is responsible for the operation of customs processes and reliefs, including End Use relief. The introduction of the Union Customs Code legislation in 2016 made some changes to how End Use relief operates. HMRC has given affected traders a transitional period, until 1 May 2019, to adjust their business processes to reflect these changes. HMRC is continuing to engage with affected sectors to explore the issues further.Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
What assessment his Department has made of the effect of the 2019 Loan Charge on people affected by that charge.
Answered by Mel Stride - Secretary of State for Work and Pensions
This government is committed to tackling tax avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.
Disguised Remuneration schemes are an aggressive form of tax avoidance costing the exchequer hundreds of millions of pounds each year.
People who use these schemes receive income in the form of a loan, which they claim is not taxable. However, the loan is, in fact, never repaid. This is wrong and is unfair on those who pay their fair share.
The Disguised Remuneration loan charge will apply so the tax due from these schemes is paid.
HMRC have published an impact assessment and are able to help those who are in genuine financial difficulty, for example, by arranging for more time to pay or for payment by instalments.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has estimated the fiscal gains derived through the dynamic effects of reducing VAT on accommodation and attractions to five per cent.
Answered by Jane Ellison
The Government has carefully considered the evidence for applying a five per cent reduced rate of VAT on accommodation and visitor attractions and believes that the costs of doing so, estimated at £3.1 billion annually, outweigh the benefits.
The Government holds all taxes under review and will always look to consider new evidence where it comes to light.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether HM Revenue and Customs made an assessment of the effect on (a) ministers of religion and (b) other low-paid workers of their being taxed on cash alternatives to a benefit which they did not receive under the new Optional Remuneration rules.
Answered by Jane Ellison
A full assessment of the impact of the new optional remuneration rules was conducted. The government believes that the impact of the change is proportionate and has made the tax system fairer for all. Transitional arrangements have been introduced to help mitigate the impact for those currently tied into such agreements.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the net fiscal effect of reducing VAT on accommodation and visitor attractions to five per cent taking into account of a potential increase in competitiveness and economic activity.
Answered by Jane Ellison
The £10 billion annual cost of reducing VAT to five per cent on tourism covers accommodation, visitor attractions and restaurants. The cost of reducing VAT to five per cent on accommodation and visitor attractions alone is estimated at £3.1 billion annually.
The Government has carefully considered the evidence for applying a five per cent reduced rate of VAT on accommodation and visitor attractions and believes that the costs of doing so outweigh the benefits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, pursuant to his oral contribution of 28 February 2017, Official Report, column 157, whether the £10 billion includes catering services; and what the corresponding figure would be for reduced VAT receipts directly attributable to accommodation and visitor attractions if VAT were reduced to five per cent on those items.
Answered by Jane Ellison
The £10 billion annual cost of reducing VAT to five per cent on tourism covers accommodation, visitor attractions and restaurants. The cost of reducing VAT to five per cent on accommodation and visitor attractions alone is estimated at £3.1 billion annually.
The Government has carefully considered the evidence for applying a five per cent reduced rate of VAT on accommodation and visitor attractions and believes that the costs of doing so outweigh the benefits.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the proportion of the National Productivity Investment Fund that is expected to be invested in coastal communities.
Answered by David Gauke
The government has established a National Productivity Investment Fund (NPIF) to provide £23bn of additional spending between 2017/18 and 2021/22. Every penny spent by the UK government is explicitly earmarked for areas that are critical to boosting productivity: economic infrastructure (transport and digital communications), Research and Development (R&D), and housing.
Further details about specifically how and where this money will be invested will be set out by the relevant departments and agencies in due course.
Where spending on measures within the NPIF does not extend to Scotland, Wales or Northern Ireland, the devolved administrations will receive funding through the Barnett formula in the usual way.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the measures announced in the Autumn Statement 2016 on coastal communities; and if he will make a statement.
Answered by David Gauke
The investments the government announced at the Autumn Statement will support a country that works for everyone, no matter where they live. We want to drive up the productivity and growth of every region by investing in their infrastructure, developing the skills of their people and supporting their companies.
Coastal communities will continue to benefit from this government’s commitment to unlocking barriers to economic growth. Since 2012, we have invested over £125 million in over 200 projects across the UK through the Coastal Communities Fund, and made at least £90 million of new funding available UK-wide over the current parliament to drive future growth in coastal communities.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an estimate of the effect on the public purse of the effects on the life chances of residents of the services and support provided through supported housing; and if he will make a statement.
Answered by Damian Hinds - Minister of State (Education)
The Treasury has made no formal estimate of the impact on the public finances resulting from the effects of supported housing provision on the life chances of residents. However, analysis of the financial benefits of capital investment in specialist housing has previously been commissioned by the Homes and Communities Agency: Financial benefits of investment in specialist housing for vulnerable and older people (2010). This includes analysis of the impact of capital funding for specialist housing on the usage and associated costs of wider public services, including primary and secondary healthcare, social care, the criminal justice system, and the benefits system.
The Department for Work and Pensions and Department for Communities and Local Government are currently conducting an evidence review of the supported housing sector, which will report shortly.