Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Financial Conduct Authority's (FCA) proposals to publicly announce the names of firms and/or individuals at the commencement of enforcement investigations on the (a) commercial value of firms, (b) career prospects of individuals who are named and (c) overall competitiveness of the UK’s (i) financial and related professional services industries and (ii) wider economy; and if he will make an assessment of the compatibility of that proposal with the FCA’s secondary objective to consider international competitiveness and economic growth.
Answered by Bim Afolami
I recognise that many in the financial services sector have concerns about the Financial Conduct Authority’s (FCA) proposed changes to its approach to enforcement.
This is why the Chancellor and I have been clear that we believe the FCA should reconsider its proposals, in light of responses to its consultation, and considering its new growth and competitiveness objective. The competitiveness of the UK’s world-leading financial services sector is one of the Government’s top priorities.
The legislative framework provides for the FCA to be operationally independent from the government. The independence of the FCA is vital to its role. The Government respects this operational independence, but takes holding it to account very seriously.
The specific concerns you have raised are a matter for the FCA, as the operationally independent regulator. The FCA will respond to the Honourable Member by letter on this matter, and a copy of the letter will be placed in the Library of the House of Commons.
The purpose of any consultation is to allow the regulators to test their proposals and understand their potential impact. It is therefore appropriate to suggest that the FCA reconsider its proposals in light of the feedback received. The Government will continue to engage closely with stakeholders, and with the FCA as they consider next steps.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HM Revenue and Customs' policy paper ‘Multinational top-up tax: UK adoption of Organisation for Economic Co-operation and Development Pillar 2, published on 20 July 2022, if he will publish the calculations behind the estimate of £8.2m annual costs to businesses affected by the measure.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The £8.2 million average reoccurring annual impact cost was calculated based on HMRC’s Standard Cost Model methodology for determining the administrative impacts of compliant, efficient businesses complying with new measures.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether international agreement on Pillar 1 of the Organisation for Economic Cooperation and Development’s base erosion and profit shifting 2.0 proposals is necessary for Pillar 2 to become operational in the UK..
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
At Autumn Statement 2022, the Government confirmed that Pillar 2 will be implemented in the UK from 31 December 2023. This can be viewed on page 51 of the Autumn Statement document on gov.uk https://www.gov.uk/government/publications/autumn-statement-2022-documents
Alongside this the Government remains focused on delivering a Multilateral Convention on Pillar 1 by mid-2023, in line with the aim set out in the OECD’s Progress Report on Pillar 1 in July 2022, with the aim of that agreement then coming into force as soon as possible.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 3.6 of the consultation on implementation of OECD Pillar 2 published on11 January 2022, whether his Department has made an assessment of the implications for his policies of the progress towards the consistent implementation of the rules in the United States; and if he will make a statement.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The international group representing more than 135 countries that are collaborating to tackle tax avoidance (known as the ‘Inclusive Framework’) have agreed that Pillar 2 implementation is subject to a ‘common approach’. This means that countries that implement Pillar 2 must do so in line with the intended outcomes of the rules, ensuring consistency in implementation. A qualification process for each country that implements Pillar 2 is under discussion by the Inclusive Framework.
The United States have already implemented a tax on low taxed foreign profits called Global Intangible Low Taxed Income (GILTI). The Government recognises that the US has committed to reforming the GILTI rules so that they align with the Pillar 2 rules. How GILTI and Pillar 2 will interact, pending such reform, is being agreed internationally.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the calculations by which an estimate of £2.11bn of revenue in 2024-25 from implementation of the global minimum corporate tax reforms was arrived at.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The number of Multinational Enterprises which have headquarters in the UK is 387. The latest information can be found in https://www.oecd.org/tax/tax-policy/corporate-tax-statistics-fourth-edition.pdf. The number of multinational enterprises which have operations in the UK, but are headquartered outside of the UK is 4,000.
The process for estimating the Exchequer yield from implementation of Pillar 2 policy in the UK can be found in the Autumn Budget 2022: Policy Costings, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118364/Autumn_Statement_2022_Policy_Costings_.pdf.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what account was taken of potential behaviour change in estimating revenue arising from implementation of the global minimum corporate tax reforms.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The number of Multinational Enterprises which have headquarters in the UK is 387. The latest information can be found in https://www.oecd.org/tax/tax-policy/corporate-tax-statistics-fourth-edition.pdf. The number of multinational enterprises which have operations in the UK, but are headquartered outside of the UK is 4,000.
The process for estimating the Exchequer yield from implementation of Pillar 2 policy in the UK can be found in the Autumn Budget 2022: Policy Costings, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118364/Autumn_Statement_2022_Policy_Costings_.pdf.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many multinational enterprises with global revenues in excess of 750 million euros per annum conduct business activities in the UK.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The number of Multinational Enterprises which have headquarters in the UK is 387. The latest information can be found in https://www.oecd.org/tax/tax-policy/corporate-tax-statistics-fourth-edition.pdf. The number of multinational enterprises which have operations in the UK, but are headquartered outside of the UK is 4,000.
The process for estimating the Exchequer yield from implementation of Pillar 2 policy in the UK can be found in the Autumn Budget 2022: Policy Costings, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1118364/Autumn_Statement_2022_Policy_Costings_.pdf.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to improve financial inclusion of under-18s.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
The Government wants to ensure that people, regardless of their background or income, have access to useful and affordable financial products and services and is committed to ensuring that people build financial capability. This means they are able to use, and maximise their use of, products and services made available by the financial services industry.
To promote financial inclusion and capability, the Government works closely together with regulators and stakeholders from the public, private and third sectors. For people under the age of 18, economic and financial education are important parts of a broad and balanced curriculum that provide the essential knowledge to ensure that young people are prepared to manage money well and make sound financial decisions.
Financial education is a statutory part of the national citizenship curriculum for 11- to 16-year-olds in England and primary schools can choose to teach citizenship, using non-statutory programmes of study.
To further support schools to deliver high quality financial education, the Money and Pensions Service published financial education guidance for schools in England in 2021. This guidance supports school leaders and education decision makers to enhance the financial education currently delivered in their schools.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward a Planning and Infrastructure Bill in this Parliament.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Infrastructure is a vital means to drive the UK’s economic growth, increasing long-term energy security and delivering Net Zero by 2050. The government remains committed to delivering high quality infrastructure in a timely manner across the UK.
Further detail on the government’s legislative priorities during the remainder of this Parliament will be set out in due course.