Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will extend the VAT reduction to 5 per cent to amusement arcades.
Answered by Kemi Badenoch - President of the Board of Trade
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. While we keep all taxes under review, this relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope of the reduced rate.
The Government has announced a significant support package to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the government-backed loan schemes.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the outcome of HMRC v The Rank Group PLC; Done Brothers (Cash Betting) Ltd and Others, what steps HMRC has taken to make appropriate repayments to operators; and whether HMRC is prioritising the repayment of operators in a particular order.
Answered by Jesse Norman
Revenue and Customs Brief 5 (2020): VAT treatment on fixed odds betting terminals and gaming machines published on 26 May 2020 (updated on 26 June 2020) sets out the process for claimants in relation to the Rank Group PLC and Done Brothers (Cash Betting) Ltd and Others litigation to be repaid the sums due to them. Repayments have now started and will continue. There has been no prioritisation of any particular claimant.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Coronavirus Job Retention Scheme through autumn and winter 2020 for (a) the travel industry and (b) other sectors in which trade has been adversely affected by the covid-19 pandemic.
Answered by Jesse Norman
After eight months of the Coronavirus Job Retention Scheme, the scheme will close in October.
The Coronavirus Job Retention Scheme must be temporary and the Government must ensure people can get back to work when it is safe to do so and get the UK economy up and running again.
It would be challenging to target the Coronavirus Job Retention Scheme to specific sectors in a fair and deliverable way, and it may not be the case that this is the most effective or sensible way to provide longer term support for those sectors most affected by coronavirus.
It would also be difficult to target the Coronavirus Job Retention Scheme at specific sectors without creating distortion, particularly as some firms work across multiple sectors.
There are other schemes, including the Coronavirus Business Interruption Loan Scheme, that can provide support to specific firms.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason ice cream parlours were not included in the list of businesses that are able to reduce the VAT levied on their products to 5 per cent.
Answered by Jesse Norman
In light of the COVID-19 outbreak, the Chancellor has introduced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates at a cost of more than £300 billion.
The temporary reduced rate of VAT will support the tourism and hospitality sectors and will help over 150,000 businesses and protect over 2.4 million jobs. Ice cream served for consumption on the premises in ice cream parlours or other food establishments will benefit from the reduced rate.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will reconsider the decision not to include ice cream parlours and their products within the scope of the VAT reduction to 5 per cent for businesses in the leisure and hospitality industry.
Answered by Jesse Norman
In light of the COVID-19 outbreak, the Chancellor has introduced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates at a cost of more than £300 billion.
The temporary reduced rate of VAT will support the tourism and hospitality sectors and will help over 150,000 businesses and protect over 2.4 million jobs. Ice cream served for consumption on the premises in ice cream parlours or other food establishments will benefit from the reduced rate.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing an economic diversification fund to assist constituencies where economies have historically been dependent on a single industry.
Answered by Kemi Badenoch - President of the Board of Trade
The Government is committed to supporting every local area invest in their local economic priorities and to level up opportunity across the country, including Blackpool. This is why at the previous Budget we announced £6bn for local transport in England, £10.9bn new capital investment into housing, and £5bn to support the rollout of gigabit broadband to the 20% hardest to reach areas. These build on the government’s previous investments, such as the Blackpool 21st Century Centre, the Blackpool Bridges and the Blackpool Tramway Extension funded through our Local Growth Fund. In addition to this Blackpool has been shortlisted as one of the 100 Towns for our £3.6bn Towns Fund.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he is having with representatives from the insurance industry to ensure that insurers pay claims from tourism and hospitality businesses for business interruption in the event of a pandemic.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is in continual dialogue with the insurance sector about its contribution to handling 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.
For those businesses which have an appropriate policy that covers government ordered closure and unspecified notifiable diseases, the Government’s social distancing instructions are sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.
The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; 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.
Furthermore, on 15 April, FCA sent a letter to the insurance industry, setting out the FCA's expectation of firms regarding their handling of business interruption insurance claims, urging insurers to settle claims quickly in cases where there was a clear obligation to pay the claim in full or in part.
In addition, on 1 May, the FCA published a statement setting out their intention to seek legal clarity on the handling of business interruption insurance claims, in order to resolve any doubt for businesses facing uncertainty on their claims. In their statement the FCA also noted that insurers should look at how they can help consumers who are experiencing financial distress as a result of COVID-19.
However, most businesses have not purchased insurance that covers losses from COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.
The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor, which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a business rates freeze for small retail, tourism and leisure commercial units which are currently unoccupied.
Answered by Jesse Norman
The Government maintains empty property relief to support property owners between the reoccupation of vacated premises. Under empty property relief, owners of properties do not normally have to pay business rates on newly vacated buildings for three months. Certain properties are also eligible for extended empty property relief.
Properties which have closed temporarily due to the Government’s advice on COVID-19 should be treated as occupied for the purposes of the business rates holiday for retail, hospitality and leisure properties.
A range of further measures to support all businesses, including those not eligible for the business rates holiday, has also been made available.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to provide financial support to casual workers and freelancers in the creative, entertainment, event and performance industries during the covid-19 outbreak.
Answered by Jesse Norman
The Government has announced unprecedented support for businesses and workers to protect them against the current economic emergency. The Government has made significant changes to the operation of Statutory Sick Pay, Universal Credit, and Employment and Support Allowance, in order that people have quicker and more generous access to a support system.
For casual workers and freelancers, the Self-Employment Income Support Scheme (SEISS) will provide grants to those who are self-employed, or members of partnerships, worth 80% of their trading profits/partnership trading profits, up to a maximum of £2,500 per month. The value of the grant is based on a three-year average of trading/partnership trading profits, from the tax years 2016-17 to 2018-19. SEISS is available to those who generate majority of their income from self -employment and who earn less than £50,000. Some 95% of people who receive the majority of their income from self-employment could benefit from this scheme.
To support those on low incomes, the Government has announced a package of temporary welfare measures, including:
Details of the range of support for individuals affected by COVID-19 is available at: https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support football league clubs facing financial difficulties as a result of the outbreak of covid-19 through (a) improving their access to Government-supported loans and (b) encouraging the Football Association and Premier League clubs to provide short-term financial assistance.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government has announced a significant package of financial support for businesses and employees, including the sport sector. This includes the Coronavirus Business Interruption Loan Scheme, the Coronavirus Job Retention Scheme, the Self-employment Income Support Scheme amongst other measures to support businesses and employees during this period. Further details of this package are available at: www.businesssupport.gov.uk