Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that the next Comprehensive Spending Review delivers sustainable funding to adult social care.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
At SR20, we announced we are providing councils with access to over £1bn to fund social care this year. This includes £300m of new grant funding for social care, on top of the £1bn Social Care grant announced last financial year which is being maintained in line with the government’s manifesto commitment. This will support local authorities to maintain care services while keeping up with rising demand and recovering from the impact of COVID-19.
Decisions on Local Government spending beyond 2021-22 will be taken as part of the next Spending Review. Further details about the Spending Review will be set out in due course.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of including reusable and environmentally sustainable menstrual products in sanitary products that are supplied at the zero rate of VAT.
Answered by Jesse Norman
A zero rate of VAT has applied to women’s sanitary products since 1 January 2021. This applies to those products which were previously subject to the reduced rate of 5 per cent, for example, tampons and pads, and also includes reusable and environmentally sustainable menstrual products, such as keepers.
The relief specifically excludes articles of clothing. Such exclusions are designed to ensure that the relief is properly targeted, since difficulties in policing the scope of the relief create the potential for litigation, erosion of the tax base and a reduction in revenue.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the implementation of changes to the loan charge, what estimate he has made of the number of people that are (a) falling into debt and (b) declaring bankruptcy as a result of those changes; and what assessment he has made of the effect on the mental health of people affected by those changes.
Answered by Jesse Norman
No estimate can be provided for the number of people who have fallen into debt, or who have been declared bankrupt, as a result of the loan charge. Falling into debt or being declared bankrupt can occur for many reasons, not necessarily as a direct result of a loan charge liability.
HMRC are not always the only creditor; some individuals may fall into debt or are declared bankrupt as a result of a non-HMRC debt and some individuals may choose to enter insolvency themselves based on their overall financial position.
HMRC only ever consider insolvency as a last resort and encourage taxpayers to get in contact to agree the best way to settle their tax debts. Anyone who is worried about being able to pay what they owe is encouraged to get in touch with HMRC as soon as possible on 03000 599110. Where a taxpayer is unable to pay their debt in full HMRC will work with them to agree an instalment arrangement based on their individual financial circumstances, and there is no maximum length.
The Government recognises that tax burdens can add significant pressures. HMRC also recognise that some taxpayers need extra help because of their individual needs or circumstances. HMRC are committed to identifying and supporting taxpayers who need extra help with their tax affairs.
HMRC have signposted the extra help available to taxpayers in correspondence and on calls. Staff look out for indications that a taxpayer may need extra support, and where appropriate will transfer them to an Extra Support adviser who has the skills and knowledge needed to help them.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government has taken to support businesses that are unable to purchase essential materials from the EU.
Answered by Jesse Norman
The Government has put in place a range of measures to facilitate trade with the EU and to avoid disruption at ports including publishing comprehensive guidance on the new arrangements for trade with the EU and operating a staged approach to customs controls. Until 31 December 2021 most traders importing non-controlled goods from the EU can make a declaration in their own records and defer making a customs declaration to HMRC for 175 days. Further information can be found at https://www.gov.uk/guidance/delaying-declarations-for-eu-goods-brought-into-great-britain. The Government has also provided a £20 million Brexit Support Fund to support small and medium sized businesses (SMEs) in adjusting to new customs, rules of origin, and VAT rules when trading with the EU.
In addition, businesses can choose to use customs facilitations to make trading across borders quicker, cheaper and easier. Further information can be found at https://www.gov.uk/guidance/check-if-you-can-delay-customs-duty-and-import-vat.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what measures the Government has put in place to support businesses that have experienced a decline in (a) exports and (b) imports between December 2020 and March 2021.
Answered by Jesse Norman
The Government has put in place a range of measures to facilitate trade with the EU and to avoid disruption at ports including publishing comprehensive guidance on the new arrangements for trade with the EU and operating a staged approach to customs controls. Until 31 December 2021 most traders importing non-controlled goods from the EU can make a declaration in their own records and defer making a customs declaration to HMRC for 175 days. Further information can be found at https://www.gov.uk/guidance/delaying-declarations-for-eu-goods-brought-into-great-britain. The Government has also provided a £20 million Brexit Support Fund to support small and medium sized businesses (SMEs) in adjusting to new customs, rules of origin, and VAT rules when trading with the EU.
In addition, businesses can choose to use customs facilitations to make trading across borders quicker, cheaper and easier. Further information can be found at https://www.gov.uk/guidance/check-if-you-can-delay-customs-duty-and-import-vat.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the Government's guidance is to UK-based banks on allowing money transfers to Sudan-based bank accounts.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury is responsible for the Money Laundering Regulations, which set out the high-level requirements on regulated firms to combat money laundering and ensure that key professionals verify their customers’ identities.
The Regulations are not prescriptive in setting out how firms should carry out customer due diligence and instead require firms to take a proportionate approach commensurate with their assessment of the risk. Each firm will therefore have their own policies on identification and customer due diligence, including on when additional, more comprehensive checks should be undertaken.
Specific guidance on how banks should conduct customer due diligence is published by the Joint Money Laundering Steering Group. This includes guidance on assessing the money laundering and terrorist financing risk associated with individual countries.
Asked by: Zarah Sultana (Labour - Coventry South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the evidential basis was for not raising the Capital Gains Tax in line with Income Tax as part of Budget 2021.
Answered by Jesse Norman
The Government keeps all taxes under review, and any changes are made at fiscal events within the context of wider public finances. As demonstrated in last month’s Budget, the Government’s priority is supporting jobs and the economic recovery from the pandemic.
Any changes to the tax system will balance the need to raise revenue with the principles of fairness and market efficiency.