Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ask the Office for Budget Responsibility to prepare an updated fiscal forecast to reflect the Government's (a) energy price cap and (b) taxation policies.
Answered by Chris Philp - Minister of State (Home Office)
The Chancellor announced in his statement to the House on Friday 23 September that he will commission the OBR to produce a forecast to be published by the end of this calendar year. We are committed to maintaining the usual two forecasts in this fiscal year, as is required.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Future Regulatory Framework Review, what assessment he has made of the potential impact on economic stability of proposals to introduce new statutory objectives of competitiveness and growth for the Financial Conduct Authority.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government intends to provide for a greater focus on growth and international competitiveness through the introduction of new secondary objectives for the PRA and the FCA.
As the regulators take on additional responsibilities for determining the rules that financial services firms must follow, it is right that their objectives reflect the importance of the financial services sector as an engine of growth for the wider economy, and the need to support the future of the UK as a global financial centre.
These new secondary objectives will complement the regulators’ existing objectives of ensuring that UK firms remain safe and sound, that the UK’s markets function well, that there is effective competition in the interests of consumers, and that consumers of financial services receive an appropriate degree of protection. The government has always been clear that the UK will remain a global leader in promoting high international standards, while ensuring that the financial services sector is delivering for businesses and consumers across the UK.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Future Regulatory Framework Review, what assessment he has made of the potential merits of increasing the representation of consumers on the financial regulators’ stakeholder panels.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government believes that it is vital that there are opportunities for interested stakeholders, including consumer groups and firms, to engage with and scrutinise the development of regulatory proposals.
The regulators are required under the Financial Services and Markets Act (FMSA) 2000 to maintain stakeholder panels as part of their general duties to consult. These panels are intended to provide valuable insight, advice and challenge across the regulators’ functions, drawing on the experience and expertise of their respective memberships.
The November 2021 Future Regulatory Framework (FRF) Review consultation proposed a number of measures to enhance the role of the panels and ensure that they represent a diverse range of stakeholders, and that the regulators are transparent about where they have engaged the panels, while maintaining their crucial role as a ‘critical friend’
The Financial Conduct Authority (FCA) currently engages with five independent stakeholder panels. The FCA Consumer Panel specifically represents the interests of consumers. The panel also has the ability to communicate its views to the Prudential Regulation Authority (PRA) on any matter the panel considers relevant.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the rise in VAT on businesses in the hospitality sector.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. As announced at Spring Budget 2021, the Government extended the 5 per cent temporary reduced rate of VAT for the tourism and hospitality sectors until the end of September 2021. On 1 October 2021, a new reduced rate of 12.5 per cent was introduced for these goods and services to help ease affected businesses back to the standard rate. This relief ended on the 31 March 2022.
The Government has been clear that the reduced rate of VAT for hospitality and tourism was a temporary measure designed to support sectors that have been severely affected by COVID-19. It is appropriate that as restrictions are lifted and demand for goods and services in these sectors increases, the temporary tax reliefs are first reduced, and then removed, in order to rebuild and strengthen the public finances.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the number of families who will see reductions in their child benefit allowance as a result of rising inflation causing wages to rise and the government freezing the higher rate tax limit.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Child Benefit is a universal benefit payable to families as a contribution towards the costs of raising a child or children. Entitlement to Child Benefit is dependent on a person making a claim for it, and it is not means-tested.
The High Income Child Benefit Charge (HICBC) is a tax charge which applies to anyone with an income of over £50,000 who gets Child Benefit, or whose partner gets it. The charge increases gradually for those with incomes between £50,000 and £60,000, and is equal to one per cent of a family’s Child Benefit for every extra £100 of income that is over £50,000 each year. Where income exceeds £60,000, the tax charge is equal to the amount payable in Child Benefit. The HICBC threshold is not linked to the Income Tax higher rate threshold.
The Government set the HICBC thresholds at these levels to help target public expenditure in the way it considered most effective. As with all elements of tax policy, the Government keeps this under review as part of the annual Budget process.
HM Revenue and Customs publish annual updates on the numbers of families impacted by HICBC, which can be found at: https://www.gov.uk/government/publications/high-income-child-benefit-charge-data/high-income-child-benefit-charge.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his planned timetable is for bringing forward legislative proposals on protecting access to cash.
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.
From 1 July to 23 September last year, the Government held the Access to Cash Consultation on 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.