Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure the decision on the treatment of the full life cycle of renewable, plant based plastics under the proposed plastic packaging tax will support the Government’s wider carbon reduction and climate change goals; and if he will make a statement.
Answered by Kemi Badenoch - President of the Board of Trade
The departments for Business, Energy and Industrial Strategy, and for Environment, Food and Rural Affairs are in the process of analysing responses to their call for evidence on setting standards for biodegradable, compostable and bio-based plastics as part of the Bioeconomy Strategy. This will also reinforce the Government’s understanding of their environmental impact of their wider adoption.
As set out in the current consultation on the Plastic Packaging Tax, the Government decided not to pre-judge the outcome of this work by having any special treatment for these types of plastics, which could encourage wider adoption of them. This is also in line with the majority view to the first consultation on the tax conducted in 2019.
The Government will keep their treatment within the tax under review throughout the process of introduction in April 2022 and following this to ensure the tax continues to deliver on the Government’s environmental objectives.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made in reviewing the benefits of the use of renewable plant-based plastics; and whether he plans to complete that review in time to inform the treatment of those plastics under the proposed plastic packaging tax.
Answered by Kemi Badenoch - President of the Board of Trade
The departments for Business, Energy and Industrial Strategy, and for Environment, Food and Rural Affairs are in the process of analysing responses to their call for evidence on setting standards for biodegradable, compostable and bio-based plastics as part of the Bioeconomy Strategy. This will also reinforce the Government’s understanding of their environmental impact of their wider adoption.
As set out in the current consultation on the Plastic Packaging Tax, the Government decided not to pre-judge the outcome of this work by having any special treatment for these types of plastics, which could encourage wider adoption of them. This is also in line with the majority view to the first consultation on the tax conducted in 2019.
The Government will keep their treatment within the tax under review throughout the process of introduction in April 2022 and following this to ensure the tax continues to deliver on the Government’s environmental objectives.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of treating mechanical ventilation with heat recovery as an energy saving measure in order for such ventilation to qualify for a reduced rate of VAT.
Answered by Jesse Norman
Until the transition period negotiated as part of the Withdrawal Agreement is complete, the current UK VAT rules will continue to apply.
However, HM Treasury and HM Revenue and Customs are working closely together to consider any changes that may be needed to ensure that the VAT system supports the Government’s objectives for both the Net Zero Review and its wider fiscal and economic strategy.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will (a) extend and (b) review the Coronavirus Job Retention Scheme to ensure people working in the aviation industry are effectively supported.
Answered by Jesse Norman
The Government recognises the challenging times facing the aviation sector as a result of COVID-19. Firms experiencing difficulties as a result of COVID-19 can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital, flexibilities with tax bills, and financial support for employees.
The Coronavirus Job Retention Scheme (CJRS) is a temporary scheme in place for 8 months starting from 1 March and ending at the end of October.
As of midnight 28 June 2020, the CJRS has helped 1.1 million employers across the UK furlough 9.3 million jobs, protecting people’s livelihoods.
As the Chancellor set out in his letter to the aviation sector, should individual firms still find themselves in difficulty after exhausting all other options, the Government is prepared to enter negotiations with them as a last resort. Any intervention would need to represent value for money for taxpayers.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of Co-operatives UK’s campaign to build back better following the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the value of co-operatives, and the contribution they make to all sectors of the economy. The first phase of our economic response has seen us take unprecedented steps to support the economy through the crisis; to keep as many people as possible in their existing jobs, to support viable businesses, including co-operatives, to stay afloat, and to protect the incomes of the most vulnerable.
As we start to open the economy up and we look forward, our energies will focus on planning for the recovery, we will consider how best to support the economic recovery. We will develop new measures to grow the economy, to back business, including co-operatives, to boost skills, and to help people thrive in the new post-Covid world. We will continue to consider how we can best support the co-operative sector to reach its potential, and welcome the views of Co-operatives UK and others in the sector as we do.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to ensure there is support for co-operative entrepreneurship in the Government's covid-19 recovery strategies; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the value of co-operatives, and the contribution they make to all sectors of the economy. The first phase of our economic response has seen us take unprecedented steps to support the economy through the crisis; to keep as many people as possible in their existing jobs, to support viable businesses, including co-operatives, to stay afloat, and to protect the incomes of the most vulnerable.
As we start to open the economy up and we look forward, our energies will focus on planning for the recovery, we will consider how best to support the economic recovery. We will develop new measures to grow the economy, to back business, including co-operatives, to boost skills, and to help people thrive in the new post-Covid world. We will continue to consider how we can best support the co-operative sector to reach its potential, and welcome the views of Co-operatives UK and others in the sector as we do.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of reducing (a) VAT, (B) national insurance contributions, (c) income tax, (d) corporation tax, (e) Stamp Duty Land Tax and (f) other taxes to contribute to the UK's economic recovery after the covid-19 outbreak; and if he will make a statement.
Answered by Jesse Norman
The Treasury has taken unprecedented steps to keep as many people in their existing jobs, support viable businesses to stay afloat and protect the incomes of the most vulnerable. These measures have been on a scale unmatched by any government in recent history.
As the Chancellor has said, a new national collective effort has begun: to reopen the country and kickstart the economy. As part of this, the Treasury is keeping all taxes under review. The Chancellor will update Parliament at the appropriate time.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the income forgone by furloughed workers who usually receive tronc payments through formal PAYE payrolls; and if he will make a statement.
Answered by Jesse Norman
The objective of the Coronavirus Job Retention Scheme (CJR) is to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. To achieve this, the grants compensate employers for the payments that they are obliged to make in order to avoid the need for redundancies. Covering discretionary payments would go beyond the objectives of the scheme.
Therefore, where tronc payments are non-discretionary, they are included when calculating payments for the purpose of the CJRS. Where tronc payments are made at the discretion of the employer or a client, they cannot be included when calculating payments for the purpose of the CJRS.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reasons he has not amended the Coronavirus Job Retention Scheme to compensate furloughed workers for tronc payments through formal PAYE payrolls for which HMRC has RTI data; and if he will make a statement.
Answered by Jesse Norman
The objective of the Coronavirus Job Retention Scheme (CJR) is to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. To achieve this, the grants compensate employers for the payments that they are obliged to make in order to avoid the need for redundancies. Covering discretionary payments would go beyond the objectives of the scheme.
Therefore, where tronc payments are non-discretionary, they are included when calculating payments for the purpose of the CJRS. Where tronc payments are made at the discretion of the employer or a client, they cannot be included when calculating payments for the purpose of the CJRS.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many incidences of failure to pay the national minimum wage have been discovered by HMRC at hand car washes.
Answered by Jesse Norman
The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it. All businesses, irrespective of size or business sector, are responsible for paying the correct minimum wage to their staff.
HMRC continue to crack down on employers who ignore the law, ensuring workers receive the wages to which they are entitled.
HMRC recognise that hand car washes are a high-risk sector for NMW non-compliance. Since 2017 HMRC have undertaken proactive compliance activity targeted at car washes operating across the UK.
In 2017-18, HMRC closed 41 cases where NMW arrears were identified for workers employed at car washes, and a further 52 cases in 2018-19.
HMRC encourage any worker who suspects that they are being paid less than the NMW to contact ACAS on 0300 123 1100, or to submit a query online at https://www.gov.uk/government/publications/pay-and-work-rights-complaints.