Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the viability of Hong Kong as an international financial centre.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government monitors the operation and functioning of the international financial system on an ongoing basis.
As noted in the latest Six-Monthly report on Hong Kong, published by the FCDO on 19 September 2023, Hong Kong continues to be recognised as an international financial centre with sole discretion over its monetary and financial policies.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of utilising UK Emissions Trading Scheme revenues from aviation to fund UK-based sustainable aviation fuel production.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Widespread hypothecation of tax revenues can undermine the government’s ability to flexibly manage the public finances.
Receipts from the ETS are used to fund the Net Zero transition, and public services more broadly, across the UK.
The UK’s SAF programme is one of the most comprehensive in the world. We are stimulating demand through our ambitious SAF mandate and are continuing to invest in domestic production to boost domestic supply and help to overcome the investment barrier of proving the technology at commercial scale.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the potential impact of (a) people leaving work and (b) sick days taken due to osteoporotic fractures on tax revenues.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The government does not have estimates for the impact on tax revenues of osteoporotic fractures. However, the government recognises the importance of boosting people’s health for their own benefit, as well as for the wider labour market and the Exchequer.
At the Spring Budget, the Chancellor announced a range of measures to support improved population health outcomes and increase the employment rate and hours worked among those with a health condition or disability. For musculoskeletal (MSK) conditions in particular, this included scaling up MSK hubs in the community and ensuring digital resources such as apps for management of mental health and MSK conditions are readily available.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps he is taking to reduce emissions from the aviation sector.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government has introduced several fiscal measures to reduce emissions from the aviation sector. The aviation sector is subject to a carbon price via the Emissions Trading Scheme, meaning that airline operators must pay for each tonne of carbon that they emit. Some airline operators in the scheme receive free allowances which reduces their exposure to the carbon price. Following a consultation last year, the UK ETS Authority has announced its decision to phase out free allocation for domestic aviation by 2026.
Air Passenger Duty (APD) is the principal tax on the aviation sector. It is expected to raise £3.8 billion in 2023-24 and the primary objective of the tax is to ensure that airlines make a fair contribution to the public finances. The banding structure for distance ensures that those who travel furthest, and thus have a greater impact on the environment, incur a greater tax liability.
Further, the Government has committed £685 million to the Aerospace Technology Institute over this Spending Review period to help drive the development of more carbon efficient and zero-emission aircraft. At the Spending Review the Government also guaranteed funding for the Aerospace Technology Institute to 2031. Plus, £165 million has been allocated to directly support the production of more sustainable aviation fuels in the UK.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of air passenger duty on passenger numbers; and whether he has made an assessment of the potential merits of adjusting the level of such duty.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government publishes tax information and impact notes (TIINs) for tax policy changes which detail the impact of the policy. The TIIN for the 2023/24 APD rates can be found at: https://www.gov.uk/government/publications/air-passenger-duty-banding-reforms-with-effect-from-april-2023/air-passenger-duty-apd-banding-reforms-and-rates-from-1-april-2023-to-31-march-2024
As with all taxes, the Government keeps APD under review and any changes are announced by the Chancellor at fiscal events.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of new mortgage prisoners since September 2022; and if he will make an estimate of the number of mortgage prisoners for each of the next three years.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Information on the number of mortgage prisoners was provided by the Financial Conduct Authority (FCA) in 2021. A link to that report is provided below.
https://www.gov.uk/government/publications/mortgage-prisoner-review
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will make an assessment of the potential merits of establishing an independent commission to design a road pricing scheme that is (a) equitable and (b) helps raise revenue in the context of trends in the level of fuel duty revenue.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
As set out in a letter to the Transport Select Committee in January 2023, the Government does not have plans to consider road pricing.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of the rate of VAT applied to electric vehicle charging in domestic settings on the take-up of electric vehicles.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The VAT relief for the supply of domestic fuel and power was not designed for charging electric vehicles (EVs) at home. However, the practical challenges of differentiating between the electricity used at home for general domestic purposes and the electricity used to charge EVs means that the relief is effectively being applied to EV charging at home.
Although VAT policy has not been designed to incentivise the uptake of EVs, the Government is committed to supporting the transition to zero emission vehicles to help the UK meet its net zero obligations. The Government has already spent over £2 billion to support the transition. With this support, the EV transition is continuing at pace. In 2022, battery electric vehicles made up 16.6 per cent of all new cars sales, up from 11.5 per cent in 2021.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to provide financial support for capital investment in infrastructure projects to make regions more accessible for remote working.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
The government is already taking steps to support, including through capital investment, the sort of digital connectivity that facilitates remote working. Project Gigabit is the government’s landmark infrastructure capital programme that has committed £5bn to supporting the rollout of gigabit-capable broadband across the hardest to reach areas of the UK. We’ve made great progress through industry efforts to date, with gigabit coverage now at 74%, up from 18% in March 2020.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential merits of bringing the rate of VAT for public electric vehicle charging in line with the rate of charging at home.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
In order to keep costs down for families, the supply of electricity for domestic use, including charging an electric vehicle (EV) at home, attracts the reduced rate of VAT (five per cent). However, electricity supplied at EV charging points in public places is subject to the standard rate of VAT (twenty per cent).
The Government has not specifically introduced a reduced rate for charging EVs at home. However, the practical challenges of differentiating between the electricity used at home for general domestic purposes, and electricity used to charge EVs currently mean that the reduced rate is effectively being applied to EV charging at home.
Introducing a VAT relief for public EV charging to match the VAT treatment of domestic fuel and power would impose additional pressure on the public finances, to which VAT makes a significant contribution. VAT is the UK’s third largest tax forecast to raise £157 billion in 2022/23, helping to fund key spending priorities such as important public services, including the NHS, education and defence.
The Government is committed to supporting the transition to zero emission vehicles to help the UK meet its net zero obligations. The Government has committed £2.5 billion since 2020 to support the transition to zero emission vehicles, which funds targeted vehicle incentives and the rollout of charging infrastructure.