Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the withdrawal of the temporary easement for wine on the supply chain for UK-based importers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the current, temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
By the end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
The Government publishes tax information and impact notes (TIINs) for tax policy changes. The summary of impacts from the changes to alcohol duty announced at Spring Budget 2023, including the wine easement, can be found here: Reform of Alcohol Duty Rates and Reliefs - GOV.UK
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of the withdrawal of the temporary easement for wine on SMEs in the wine industry.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume.
To help the wine industry adapt to the new duty system, the current, temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
By the end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
The Government publishes tax information and impact notes (TIINs) for tax policy changes. The summary of impacts from the changes to alcohol duty announced at Spring Budget 2023, including the wine easement, can be found here: Reform of Alcohol Duty Rates and Reliefs - GOV.UK
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will add heat batteries for a central heating system to the list of energy saving materials that are zero-rated.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The installation of qualifying energy-saving materials in residential accommodation and buildings used solely for a relevant charitable purpose benefits from a temporary VAT zero rate until March 2027.
Last year, a Call for Evidence (CfE) seeking views on additional technologies to potentially include within this relief was run. Heat batteries were one of the technologies put forwards by respondents. As set out in the Government response to the CfE, at that time, the Government was unable to identify sufficient independent data regarding the efficiency of heat batteries, making it difficult to assess the technology’s energy-saving properties objectively.
The Government currently has no plans to add further technologies to this VAT relief. Nevertheless, the Government keeps all taxes under review as part of the policy making process. Changes to the tax system are announced at fiscal events in the usual way.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will include in the forthcoming Budget proposals relating to the plastic packaging tax - chemical recycling and adoption of a mass balance approach consultation, published on 18 July 2023.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government has confirmed its intent to publish a response to this consultation by the end of the year. Further details of the government’s response will be set out in due course.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the cost to her Department was of ministerial severance payments in each year from 19 December 2019 to 30 May 2024; which Ministers received a severance payment in that period; and how much each Minister received.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Any severance payments made to former Ministers of HM Treasury are recorded in the Departmental Annual Report and Accounts.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to publish a response to the consultation on Plastic Packaging Tax - chemical recycling and adoption of a mass balance approach, published on 18 July 2023.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The government intends to publish a response to the Plastic Packaging Tax consultation on adoption of a mass balance approach by the end of the year.
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
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 - Shadow Financial Secretary (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 - Shadow Secretary of State for Environment, Food and Rural Affairs
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 - Shadow Financial Secretary (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.