Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much his Department spent on external consultants in each of the last five years.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
HM Treasury’s spend on consultancy is published and available for viewing within the Annual Report and Accounts. HMT is yet to lay its accounts for 2021-22, but these are due to be published prior to the summer recess. We have included the links to the published Annual Report and Accounts for each of the available years in question within the table below.
Financial Year | Publication Link | Page Reference |
2017-18 | https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/724104/2017-18_Final_HMT_ARA__web_.pdf | Page 84 |
2018-19 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2018-to-2019 | Page 88 |
2019-20 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2019-to-2020 | Page 104 |
2020-21 | https://www.gov.uk/government/publications/hm-treasury-annual-report-and-accounts-2020-to-2021 | Page 101 |
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the article of Bureau for Investigative Journalism on 10 March 2022 that reported how ODA reporting for vaccine donations displaced up to £144 million of aid, if he will ensure any vaccine donation ODA reporting for 2022 is additional, rather than within, its 0.5 per cent GNI target.
Answered by Simon Clarke
The government remains committed to international development and providing support to the world's poorest, and intends to return to spending 0.7% of gross national income on Official Development Assistance (ODA) when the fiscal situation allows.
The 2021 Spending Review provides departments with an ODA budget that rises to £12.3 billion in 2024-25, growing by 23% compared to the £10 billion allocated at the 2020 Spending Review, and facilitates significant increases across priority spending areas. This will ensure that the UK remains one of the largest ODA spenders in the world and well above the OECD Development Assistance Committee average.
The UK donated 30.8 million vaccines in 2021. We have now donated a total of 54.5 million vaccines, benefitting more than 38 countries. Our 100 million dose-donation target is part of one billion doses G7 leaders committed to share and finance at the Carbis Bay summit. They are a testament to our collective commitment to accelerate global vaccine access.
As with all ODA eligible expenditure, donations of surplus vaccines will count towards meeting the UK’s annual ODA spending commitment; this is the established UK approach in line with international rules.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the cost to the public purse is of the element of the energy bill discount scheme, announced on 3 February 2022, relating to the council tax rebate proposal; and what allowance he has made in that costing for the provision of support to pensioners who are on 100 per cent council tax support and who may need assistance to claim the £150 rebate from their local authority.
Answered by Simon Clarke
The government has announced a £150 non-repayable council tax rebate for households in England in council tax bands A-D and £144 million of discretionary funding for billing authorities to support households who are are not eligible. The cost of both measures is estimated to be around £3 billion, including support for pensioners in receipt of Local Council Tax Support, and will be finalised following a reconciliation process to confirm how many rebates have been provided.
The Department for Levelling Up, Housing and Communities has published guidance to help billing authorities administer the rebate effectively.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of (a) Scotch Whisky distilleries and (b) reforms to alcohol taxation that widens the differential between spirits and categories such as beer and cider on (i) employment opportunities and (ii) local economies.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government has announced several changes to alcohol duty that will support the Scotch Whisky sector. At the Budget, spirits duty was frozen, making freezes continuous since 2017. As part of our alcohol duty review, the Government intends to move to a system where all products are taxed in reference to the litres of pure alcohol they contain, making the taxation of other products more consistent with Scotch. Above 8.5% ABV there is to be no differentiation between product categories, providing a more level playing field between spirits and other products. These changes will narrow the difference between Scotch, wines and high-strength ciders.
The Government is continuing to engage with interested stakeholders on these reforms. A consultation ran from 27 October 2021 to 30 January 2022, and the Government is now analysing the responses. A tax information and impact note will be published following the consultation when the policy is final, or near final, in the usual way.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the evidential basis is for how the proposals to reform alcohol taxation will support improved public health, in the context of the comparative number of units of alcohol in a (a) four per cent ABV pint of beer or cider and (b) a Scotch Whisky highball or in a gin and tonic.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government intends to move to a new progressive system of duty that taxes all products in reference to the litres of pure alcohol they contain, with products with higher concentration of alcohol paying a higher rate of duty per unit. As part of this approach, the Government is cutting duty on lower ABV spirits-based drinks, such as pre-packaged gin and tonics.
The Government received evidence supporting this approach during its call for evidence held in 2020. As set out in the summary of responses published in October 2021, public health groups cited the correlation between cheap, high strength spirits (such as vodka) and alcohol-related harms, as the volume of drink needed to reach intoxication is smaller with higher strength drinks. The Government has a responsibility to address these concerns.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of maintaining the 12.5 per cent rate of VAT on inflation.
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 to 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 new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the 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: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made on the impact of maintaining the current 12.5 per cent rate of VAT on consumer spending.
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 to 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 new rate will end on 31 March 2022.
This relief has cost over £8 billion and, whilst all taxes are kept under review, there are no plans to extend the 12.5 per cent reduced rate of VAT. The Government has been clear that this relief is a temporary measure designed to support the 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: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made on the potential merits of maintaining the current 12.5 per cent rate of VAT and providing 100 per cent business rates relief to support hospitality businesses.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has provided over £400 billion of direct support to the economy during this financial year and the last, which has helped to safeguard jobs, businesses, and public services in every region and nation of the UK through the pandemic.
The reduced rate of VAT for hospitality and tourism has cost over £8 billion and will continue to support businesses until 31 March 2022. There are no plans to extend the length of this relief. Eligible businesses in the retail, hospitality, and leisure sectors in England will benefit from business rates relief worth £6 billion in the year 2021-22. All taxes are kept under review, but it is appropriate that the temporary tax reliefs are first reduced, and then removed, in order to strengthen and rebuild the public finances.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he will take to ensure that the Alcohol Duty Review supports the Scotch whisky sector.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
As announced at the Budget, the duty rates on spirits will be frozen for another year. This will save consumers 52p on a 70cl bottle of Scotch, and £845 million over the coming years. Cuts and freezes at eight of the last nine budgets means a bottle of Scotch is £2.72 cheaper than it would have been had prices risen with inflation, and means that spirits duty is at its lowest rate in real terms since 1918.
As part of our alcohol duty review, we have announced further reforms which aim to support the Scotch whisky sector. To achieve a more level playing field, the Government intends to move to tax all alcoholic products in reference to the litres of pure alcohol they contain, as currently happens for spirits, and to reduce the duty differential between wines and spirits. This will provide a more consistent treatment between spirits, wines and stronger beers.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the contribution the Scotch whisky sector can make in supporting the UK’s hospitability sector to recover from the covid-19 outbreak.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government recognises the important contribution the Scotch whisky sector makes to the hospitality sector and the wider economy.
For this reason, and as announced at the Budget, the duty rates on spirits will be frozen for another year. This will save consumers 52p on a 70cl bottle of Scotch, and £845 million over the coming years. Cuts and freezes at eight of the last nine budgets means a bottle of Scotch is £2.72 cheaper than it would have been had prices risen with inflation. Due to the continued freeze on alcohol duty, Scotch whisky is also facing the lowest real-terms tax rate since 1918.