Asked by: Lord Rooker (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the revenue they would receive if National Insurance was paid by those aged over 65 with incomes over the threshold; and what assessment they have made of requiring those with incomes above the threshold to pay it.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Estimated figures of the cost of the National Insurance Contributions (NICs) exemption for those aged over 65 are published by HM Revenue and Customs in their Structural Tax Reliefs publication.
A condensed version of the table of interest has been copied below, showing estimated costs annually from 2018-19 until 2023-24.
Table: HMRC NICs Structural Cost Estimates by Financial Year
Financial Year NICs structural cost estimates (£ million)
2018-19 1,300
2019-20 1,200
2020-21 840
2021-22 1,200*
2022-23 1,200*
2023-24 1,100*
*Projected estimates based upon the 2019-20 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibility’s March 2023 Economic and Fiscal Outlook.
The estimated cost of this exemption does not represent the yield if this exemption were to be abolished as other behavioural responses, including a possible increase in State Pension expenditure, would be expected to substantially reduce the yield.
Asked by: Lord Rose of Monewden (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they expect real GDP per capita to return to its pre-pandemic peak; and what steps they are taking to support this growth.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Achieving sustained economic growth is the priority mission of this government. The government is focused on fixing the foundations of the UK’s economy.
Having launched the Growth Mission in July 2024, the government has already taken several steps including planning reforms to get Britain building, establishing the National Wealth Fund, announcing a Pensions Review, and launching Skills England. The government is under no illusion of the scale of the challenge, however, given the difficult economic inheritance.
HM Treasury does not prepare formal forecasts for the UK economy, which are the responsibility of the independent Office for Budget Responsibility (OBR). In its March forecast, the OBR expects that GDP per capita will surpass its pre-pandemic peak in 2025. Further details can be found in Table 1.5 of the OBR’s latest Economic and Fiscal Outlook published in March 2024: https://obr.uk/efo/economic-and-fiscal-outlook-march-2024/.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to improve GDP growth.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Achieving sustained economic growth is the priority mission of this government. The government is focused on fixing the foundations of the UK’s economy.
Having launched the Growth Mission in July 2024, the government has already taken several steps including planning reforms to get Britain building, establishing the National Wealth Fund, announcing a Pensions Review, and launching Skills England. The government is under no illusion of the scale of the challenge, however, given the difficult economic inheritance.
HM Treasury does not prepare formal forecasts for the UK economy, which are the responsibility of the independent Office for Budget Responsibility (OBR). In its March forecast, the OBR expects that GDP per capita will surpass its pre-pandemic peak in 2025. Further details can be found in Table 1.5 of the OBR’s latest Economic and Fiscal Outlook published in March 2024: https://obr.uk/efo/economic-and-fiscal-outlook-march-2024/.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to reduce the cost of the ATA Carnet for cultural goods.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The London Chamber of Commerce and Industry (LCCI) and its operational unit, the UK National ATA Carnet Organisation, is responsible for the issue of ATA Carnets in the UK. Issuing Chambers charge their own fees to cover their administration costs. The cost of an ATA Carnet also reflects the cost of providing a guarantee through an International Guarantee Chain, which covers any customs charges potentially due on goods in the countries to be visited.
The UK is currently participating in a pilot exercise to digitalise ATA Carnets and their processes as part of a World Customs Organisation (WCO) and International Chamber of Commerce (ICC) initiative. The Digital Pilot was launched in February 2019, initially involving the UK and five other countries. To date, the UK has successfully processed a number of e-ATA Carnets from Heathrow and is looking to collaborate with more ports to make digital Carnets more readily available.
There are other options for temporarily moving goods between the UK and EU which may be more cost-effective than an ATA Carnet, depending on the specific circumstances. The EU’s Temporary Admission procedure can be used in conjunction with the UK’s Returned Goods Relief to claim relief on goods which are temporarily imported into the EU, and subsequently re-exported back into the UK. More information can be found on GOV.UK.
Asked by: Lord Moylan (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the policy of (1) the Treasury, and (2) the Government Equalities Office, on the consultations being conducted by the Financial Conduct Authority and the Prudential Regulation Authority on new diversity and inclusion reporting requirements for financial services firms; and what assessment they have made of whether those proposals are in line with their policy on increasing economic growth.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are non-governmental bodies which are independent from the Treasury and have broad powers to make rules in order to advance their statutory objectives. The regulators are required by legislation to carry out their general functions, which include rule-making, in a way that advances their competitiveness and growth objectives.
In line with statutory requirements, the FCA and PRA have included in their consultations an explanation of the compatibility of the proposed rules with their duties, including consideration of the competitiveness and growth objectives.
Asked by: Earl of Clancarty (Crossbench - Excepted Hereditary)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to further improve the provision of A1 forms, in particular for self-employed workers in the music industry touring in the EEA.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Since February 2023 HMRC have delivered three new online A1 application forms. These online forms are more accessible and provide a tailored customer journey for those applying for an A1 certificate.
In addition HMRC are adding automation to these forms, which will enable faster processing and reduce opportunities for error. HMRC expect the CA3837 used by self-employed workers in the music industry touring within the EEA, to be automated by October 2024.
Asked by: Lord Kempsell (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how they plan to assess the impact of the proposal to charge VAT on independent school fees at the upcoming spending review; and what is the latest date by which this spending review will be concluded.
Answered by Lord Livermore - Financial 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.
The Government will confirm the introduction of these tax policy changes at the Budget on 30 October. Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, details of the Government’s assessment of the expected impacts of these policy changes will be published at the Budget in the usual way.
The Chancellor has launched a multi-year Spending Review to conclude in Spring 2025.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the annual loss of tax revenue from small businesses.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
HMRC is committed to tackling all forms of non-compliance, including evasion. Each year HMRC makes an annual assessment of the tax gap, which is the difference between the amount of tax that should, in theory, be paid, and the amount that is actually paid. The latest published tax gap is for 2022-23 and was 4.8% of theoretical liabilities, or £39.8bn. The element attributable to small businesses is 60% (£24.1bn) of that overall tax gap.
HMRC publishes these estimates in its annual ‘Measuring the Tax Gap’ report. https://www.gov.uk/government/statistics/measuring-tax-gaps
The tax gap derives from a wide range of non-compliant behaviours, from simple errors at one end of the spectrum to more deliberate behaviours at the other, requiring different approaches to tackle it. The Government is committed to ensuring that businesses and individuals pay the taxes they owe.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which Ministers (1) requested, and (2) approved, the appointment of Ian Corfield as a civil servant in July 2024; and which Minister and/or senior official authorised the Recruitment Principles exception application to the Civil Service Commission.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. He has since been appointed, unpaid, as a direct ministerial appointment.
The Treasury does not comment on the individual contractual arrangements.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of their duties under the UN Convention on the Rights of the Child in relation to the imposition of VAT on independent schools, including those catering for the needs of children with special educational needs.
Answered by Lord Livermore - Financial 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.
The Government gives due consideration to the UN Convention on the Rights of the Child (UNCRC) articles when making new policy. State education is accessible to all children, regardless of their financial status and all children of compulsory school age are entitled to a state-funded school place if they need one. Education matters and is at the heart of our mission to break down barriers to opportunity so every child gets the best start in life.
The Government is also committed to ensuring that all children’s needs are met. This Government’s ambition is that all children and young people with Special Educational Needs and Disabilities (SEND), with an Education, Health and Care Plan (EHCP) or not, receive the right support to succeed in their education and as they move into adult life. We are committed to improving inclusivity and expertise in mainstream schools, as well as ensuring special schools cater to those with the most complex needs.