Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of rising transaction fees for non-European Economic Area cards on small businesses in (a) the Highlands and (b) other tourist areas; and whether her Department has plans to take steps to reduce those transaction fees.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Government is committed to promoting competition in the payments sector and recognises the importance of ensuring the fees charged for card payments are fair for all parties, including merchants.
Card transaction fees are made up of different components. These include interchange fees paid to card issuers, and scheme and processing fees paid to the card scheme operators. Domestic interchange fees are capped under law and the Payment Systems Regulator is responsible for enforcing these caps.
The PSR also has a broader programme of work to review aspects of card fees and assess whether the markets are working well, including for merchants. For example, earlier this year, the PSR published the interim findings of its investigation review into recent increases in scheme and processing fees, which can be found here.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 26 July 2024 to Question 1260 on Senior Civil Servants: Recruitment, whether the Director of Special Advisers and Chancellor Engagement role was open to external candidates.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The grade of the Director of Special Advisers and Chancellor Engagement post is SCS pay band 2.
The appointment of the Director of Special Advisers and Chancellor Engagement followed the correct processes. The postholder has been a civil servant for 7 years. She had passed a selection board for a role at director level prior to the General Election being called. A similar director role had previously been filled by a civil servant. The incumbent has been appointed for an initial period of 6 months.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department's Director of Special Advisers and Chancellor Engagement post was advertised (a) externally or (b) internally; and whether the post was filled by open and fair competition.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The grade of the Director of Special Advisers and Chancellor Engagement post is SCS pay band 2.
The appointment of the Director of Special Advisers and Chancellor Engagement followed the correct processes. The postholder has been a civil servant for 7 years. She had passed a selection board for a role at director level prior to the General Election being called. A similar director role had previously been filled by a civil servant. The incumbent has been appointed for an initial period of 6 months.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, to publish what the total value of (a) income tax paid, (b) National Insurance Contributions paid, (c) tax credits claimed and (d) child benefit claimed for non-UK nationals is, broken down by nationality, for each of the last five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC no longer produce a breakdown of Income Tax paid, National Insurance contributions paid, tax credits claimed and Child Benefit claimed by nationality. The latest publication was in August 2022.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the (a) job description and (b) pay band is for the Director of Special Advisers and Chancellor Engagement.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The grade of the Director of Special Advisers and Chancellor Engagement post is SCS pay band 2.
The appointment of the Director of Special Advisers and Chancellor Engagement followed the correct processes. The postholder has been a civil servant for 7 years. She had passed a selection board for a role at director level prior to the General Election being called. A similar director role had previously been filled by a civil servant. The incumbent has been appointed for an initial period of 6 months.
Asked by: Jerome Mayhew (Conservative - Broadland and Fakenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when her Department plans to publish a business tax roadmap.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will outline a tax roadmap for business at the Budget to offer the certainty that encourages investment and gives business the confidence to grow, including our commitment to cap corporation tax at 25% for the duration of this Parliament and to retain full expensing.
Asked by: Rupert Lowe (Reform UK - Great Yarmouth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will review the implementation of the Enterprise Investment Scheme; and if she will meet the hon. Member for Great Yarmouth to discuss that scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Enterprise Investment Scheme was recently evaluated, with reports published in November 2023. These are available on gov.uk.
Asked by: Damian Hinds (Conservative - East Hampshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has received representations over the timing of her Department's consultation on Applying VAT to Private School Fees and Removing the Business Rates Charitable Rates Relief for Private Schools.
Answered by James Murray - Exchequer Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
This change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Local Authorities (LAs) fund pupils’ places in private schools where their needs can only be met in a private school. For example, in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP), LAs will be able to reclaim the VAT on the fees from HMRC. In Northern Ireland, it will be the Education Authority who fund placements in private schools and will be able to reclaim the VAT.
If parents have chosen to pay the fees to place their child in a private school while going through an EHC needs assessment, they will be liable for any fees. As part of the EHC assessment process, the LA will consider what school or college to name on the plan. LAs aim to process all EHCP applications in time for the start of the next school year so that parents can make an informed decision as to which school they send their child to. In certain circumstances, the LA is able to prepay one term’s fees if the EHCP is not yet complete, but the outcome is foreseeable. Likewise, some private schools will forgo the first term’s fees for pupils that are expected to be granted an EHCP in the future.
A technical consultation was published on 29 July and remained open until 15 September. This gave schools 6 weeks to prepare a consultation response, including around 2 weeks from the end of the school holidays. It is important that the consultation closed on 15 September to provide enough time to analyse responses and consider any changes to the draft legislation ahead of Budget.
Asked by: Damian Hinds (Conservative - East Hampshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to exempt pupils awaiting an Education Health and Care Plan from the introduction of VAT on independent school fees.
Answered by James Murray - Exchequer Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
This change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Local Authorities (LAs) fund pupils’ places in private schools where their needs can only be met in a private school. For example, in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP), LAs will be able to reclaim the VAT on the fees from HMRC. In Northern Ireland, it will be the Education Authority who fund placements in private schools and will be able to reclaim the VAT.
If parents have chosen to pay the fees to place their child in a private school while going through an EHC needs assessment, they will be liable for any fees. As part of the EHC assessment process, the LA will consider what school or college to name on the plan. LAs aim to process all EHCP applications in time for the start of the next school year so that parents can make an informed decision as to which school they send their child to. In certain circumstances, the LA is able to prepay one term’s fees if the EHCP is not yet complete, but the outcome is foreseeable. Likewise, some private schools will forgo the first term’s fees for pupils that are expected to be granted an EHCP in the future.
A technical consultation was published on 29 July and remained open until 15 September. This gave schools 6 weeks to prepare a consultation response, including around 2 weeks from the end of the school holidays. It is important that the consultation closed on 15 September to provide enough time to analyse responses and consider any changes to the draft legislation ahead of Budget.
Asked by: Josh Fenton-Glynn (Labour - Calder Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with HMRC on (a) industrial relations at the Benton Park View office in Newcastle and (b) the appropriate use of disciplinary practices in that office.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC has clear policies and processes on conduct which ensure all staff are treated fairly. HMRC is aware that, as Ministers, we value the role of the trade unions in the workplace.