Topical Questions 2023-11-14
2023-11-14
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
There is widespread consensus that growth is essential to the economy. With 800,000 fewer self-employed in the economy post covid and post IR35.
With 800,000 fewer self-employed in the economy post-covid and post-IR35, does the Chancellor agree that increasing the VAT threshold to £250,000 for new registrations would boost growth and be a net gain in revenue terms in the long run?
I thank my hon. Friend for raising the support we give to small businesses. As he will know, supporting small businesses, particularly by rolling over the retail, hospitality and leisure business rates discount of 75%, was a major feature of the autumn statement. We will continue to keep under review anything that we can do to help our small businesses.
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Assessment & feedback
The Chancellor did not directly address whether he agrees with increasing the VAT threshold to £250,000 for new registrations would boost growth and be a net gain in revenue terms in the long run.
Under Review
Response accuracy
Q2
Direct Answer
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Context
The covid inquiry is uncovering unsavoury examples of Government mismanagement. We already know that Ministers ignored warnings that their business loan schemes were vulnerable to organised crime, yet the Prime Minister left the vaults open to fraudsters.
I welcome all the new Ministers to their roles and wish them well in them. The covid inquiry is uncovering unsavoury examples of Government mismanagement. We already know that Ministers ignored warnings that their business loan schemes were vulnerable to organised crime, yet the Prime Minister left the vaults open to fraudsters. Will the Chancellor update the House on the latest estimates of taxpayers' money lost to fraud from the covid support schemes?
I am happy to tell the shadow Chancellor that as of September 2023, HMRC's compliance effort on covid-19 support schemes, which started when the schemes were set up in spring 2020, had prevented the payment of or recovered the overpayment of more than £1.6 billion of grants.
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Assessment & feedback
Response accuracy
Q3
Partial Answer
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Context
According to the House of Commons Library's most recent numbers, covid fraud losses total a staggering £7.2 billion—that is bigger than the fiscal headroom that he had in his spring Budget. More stories are coming to light about companies with undeclared interests and personal protective equipment contracts not delivering to the standards required.
I thank the right hon. Gentleman for that answer, but according to the House of Commons Library's most recent numbers, covid fraud losses total a staggering £7.2 billion—that is bigger than the fiscal headroom that he had in his spring Budget. More stories are coming to light about companies with undeclared interests and personal protective equipment contracts not delivering to the standards required. Ahead of the autumn statement, will he confirm that the Government have also had to write off more than £8.7 billion from pandemic PPE contracts?
Let me say two things. First, we have no quarter with any incidence of fraud. We have commenced 51 criminal investigations into suspected fraud cases and there have been a total of 80 arrests so far. Let me also say that during the pandemic we introduced £400 billion of support to businesses and families up and down the country and, according to the latest figures from the Office for National Statistics, the result is that our economy is nearly 2% bigger than pre-pandemic, while Germany's, for example, is only 0.3% bigger.
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Assessment & feedback
The Chancellor did not directly confirm or deny whether the Government have had to write off more than £8.7 billion from pandemic PPE contracts.
No Quarter With Any Incidence Of Fraud
Response accuracy
Q4
Partial Answer
Primary care capital allocation has pulled the short straw for decades. May I encourage Treasury Ministers to look across Government and with developers —retrospectively if necessary—to ensure that when we build huge new housing estates, the primary care promised in the planning permissions is actually provided?
I will take this question as well because my hon. Friend has lobbied me personally on this issue. Literally no one in this House has worked harder on it than he has. I have an example of the very problem he is talking about in my own constituency. He is right that it takes too long for housing development capital to reach NHS primary care projects. We will look into the issue carefully.
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Assessment & feedback
Will Look Into The Issue Carefully
Response accuracy
Q5
Partial Answer
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Context
In my constituency we are faced with the potential closure of vital public services such as Cleckheaton town hall, Claremont House dementia care home and Batley sports and tennis centre. Ultimately, that comes down to cuts imposed on Kirklees Council of more than £1 billion since 2010.
In my constituency we are faced with the potential closure of vital public services such as Cleckheaton town hall, Claremont House dementia care home and Batley sports and tennis centre. Ultimately, that comes down to cuts imposed on Kirklees Council of more than £1 billion since 2010. Ahead of next week's autumn statement, what conversations has the Chancellor had with his colleagues in the Department for Levelling Up, Housing and Communities to ensure that our local authorities are properly funded and the future of our vital public services is protected?
I am answering a lot of the topical questions today because I have a new team. I want to reassure the hon. Lady that we are very aware of the financial pressures that local authorities are under. I am having extensive discussions with the Communities Secretary.
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Assessment & feedback
Want To Reassure
Having Extensive Discussions
Response accuracy
Q6
Partial Answer
On the Conservative Benches we all agree that the way to sustainable economic growth without inflation is through business investment. It is early days, but I wonder whether we have indications of how well full expensing is working for encouraging business investment in this country. Is the Chancellor considering making that full expensing permanent next week at the autumn statement?
I welcome my hon. Friend's interest in the topic. One of the reasons why our productivity is 15% lower than Germany's, for example, is that it invests 2% more as a proportion of its GDP than we do in the UK. Improving the rate of business investment is one of the most effective ways to boost productivity and people's real disposable income. We are proud of what we introduced in the spring Budget, and we will continue to see whether it is possible to extend it further.
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Assessment & feedback
See Whether It Is Possible
Response accuracy
Q7
Partial Answer
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Context
London's homelessness is at crisis point with more than 1 in 50 Londoners in temporary accommodation. Affordable housing is scarce, with only around 2% of properties affordable for rent on local housing allowance.
I am concerned about the adequacy of local housing allowance rates given that one child in every classroom is homeless and only around 2% of properties are affordable for rent on local housing allowance. What assessment has the Chancellor made?
We continue to keep under review all factors impacting poverty rates, and have invested £2 billion over three years in homelessness reduction. Rough sleeping has decreased by 35% since its peak.
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Assessment & feedback
Specific assessment of local housing allowance rates
Under Review
Response accuracy
Q8
Partial Answer
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Context
Misguided cost disclosure legislation is restricting investment in UK investment trusts, making them appear unduly expensive compared to other countries.
The Chancellor has acknowledged misguided cost disclosure legislation plaguing one third of all FTSE 250 companies as investment trusts. Will he support Baroness Altman's private Member's Bill and address the issue in his autumn statement?
We are supportive of reforming how we treat costs in our investment and pension funds industries. The way we handle costs is not optimal, but I cannot comment on specific measures for the autumn statement.
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Assessment & feedback
Specific support or action on Baroness Altman's Bill
Under Review
Response accuracy
Q9
Partial Answer
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Context
The former Chief Secretary to the Treasury was fired shortly after expressing alarm over high tax burdens, the highest in 70 years.
Was the former Chief Secretary sacked for highlighting the Government's tax burden, which is the highest for 70 years?
My right hon. Friend did an excellent job and we all salute his work. We have the lowest tax burden of any European country in the G7.
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Assessment & feedback
Reason for sacking the former Chief Secretary
Changing Subject
Response accuracy
Q10
Partial Answer
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Context
The whisky industry in Scotland is vital to the economy. The policy of a duty freeze was not continued in the Budget.
Can we return to the policy of duty freeze on whisky for next autumn statement and Budget?
We are supportive of the Scotch Whisky industry. In nine out of ten previous fiscal events, we either cut or froze whisky duties and acted to remove punitive tariffs.
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Assessment & feedback
Specific commitment on duty freeze for next fiscal events
Under Review
Response accuracy
Q11
Partial Answer
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Context
Banks are making bumper profits due to higher interest rates, but the Government is reducing surcharge on bank profits.
With people supporting a windfall tax on excess bank profits, will the Government do the same?
We have a globally competitive tax regime and do not apologise for it. The reduction in levy was offset by rising corporation tax.
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Assessment & feedback
Windfall tax on excess bank profits
Changing Subject
Response accuracy
Q12
Direct Answer
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Context
The Exchequer Secretary visited Darlington, where he opened a new branch of Darlington Building Society. The visit highlighted the impact of Treasury jobs locally.
Does the Exchequer Secretary agree that Darlington Economic Campus is a fantastic levelling-up project ensuring people can stay local but go far?
The Darlington Building Society visit was important, and the Darlington campus is an integral part of our Treasury levelling-up agenda.
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Assessment & feedback
Response accuracy
Q13
Partial Answer
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Context
More than 3 million households owe £2.7 billion in the unregulated buy now, pay later sector, prompting Labour to propose urgent regulation.
When will the Government regulate the unregulated buy now, pay later sector as proposed by Labour?
We are looking closely at regulation in this area. The consultation closed in April and we are working on it to ensure we get it right.
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Assessment & feedback
Specific timeline for regulations
Under Review
Response accuracy
Q14
Partial Answer
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Context
The New Conservatives tax plan outlines scrapping IR35 reforms, increasing VAT threshold to £250,000, and delivering a 1p cut in income tax in 2024.
While the shadow Chancellor was busy scrolling through Wikipedia, will the actual Chancellor implement the New Conservatives tax plan?
We are committed to lowering the tax burden and will do so as soon as it is responsible.
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Assessment & feedback
Specific measures from New Conservatives plan
Under Review
Response accuracy
Q15
Partial Answer
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Context
Recent increases in mortgage rates have impacted many homeowners in Chester.
Some 28% of people in Chester have a mortgage and they are still bearing the burden of the Government's disastrous mini-budget. They deserve peace of mind that mortgage rates will come down soon, so what is the Chancellor going to do about it?
Interest rates have risen globally due to inflation concerns. The Government supports the Bank of England in its efforts to control inflation, which is necessary for bringing down mortgage rates.
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Assessment & feedback
Specific steps to reduce mortgage rates were not provided
Global Phenomenon
No Short Cut
Response accuracy
Q16
Partial Answer
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Context
Businesses in the region are facing difficulties with the current red tape around the apprenticeship levy.
Will the Chancellor look at the red tape around the apprenticeship levy? Many businesses in my area, such as Asda, Amazon and DPD, all say that they want to take on more apprenticeships but that the red tape around how they spend the money is very difficult. This is something that he could change overnight, and really help to grow and boost our economy.
The Government recognises the importance of the apprenticeship levy in providing rigorous technical qualifications. They are open to reform, provided it maintains the principle that investments should not fund internal training but support transferable skills.
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Assessment & feedback
Specific reforms were not mentioned
Fundamental Principle
Response accuracy
Q17
Partial Answer
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Context
The NHS dental plan has been delayed, causing long wait times for patients.
The NHS dental plan has been stuck in the Treasury for months, while my constituents are waiting years to see an NHS dentist. When the Chancellor makes his autumn statement, will he also release the dental plan with the funding that is required so that we can get dental treatment back on track for our constituents?
I will not pre-empt what I am going to say next week, but I acknowledge the pressures on NHS dentistry.
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Assessment & feedback
Release of dental plan and funding was not confirmed
Pre-Empt
Response accuracy
Q18
Partial Answer
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Context
The questioner suggests that inheritance tax is unpopular and proposes its removal.
Given that inheritance tax is the least popular of all taxes at every income decile and that scrapping it would not be inflationary, will my right hon. Friend consider doing so?
The suggestion was noted but no commitment was made.
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Assessment & feedback
No clear commitment to remove inheritance tax
Nice Try
Response accuracy
Q19
Partial Answer
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Context
A small trial of the opt-out savings system in Manchester has shown promising results.
Opt-out savings are a little like auto-enrolment in pensions. They help those on lower incomes to save for a crisis—for the proverbial rainy day. Given that more than 9 million people in this country are in work with no savings at all, will the Chancellor note the impressive results of a small trial of the opt-out savings system in Manchester, and encourage its expansion?
The Chancellor is willing to consider expanding the opt-out savings system.
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Assessment & feedback
No specific plans for expansion
Response accuracy
Q20
Partial Answer
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Context
Synthetic fuels are taxed at the same rate as fossil fuel equivalents, which could be an issue.
Will my right hon. Friend seek to fix the anomaly that sees man-made fully synthetic fuels taxed at the same rate as their fossil equivalents?
The Chancellor will look into the issue in detail.
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Assessment & feedback
No specific action or timeline provided
Response accuracy
Q21
Partial Answer
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Context
The Chancellor's colleague referred to non-domiciled individuals as 'poor old non-doms', which is inaccurate.
Yesterday in the House, in the context of Labour's plan for a health service, the Secretary of State for Work and Pensions referred to the “poor old non-doms”. Does the Chancellor agree with his colleague that people who live in this country but do not pay their taxes here can be accurately described as poor?
The Chancellor argues against characterising non-domiciled individuals as poor, highlighting the importance of attracting wealth creators and the contribution of financial services to NHS funding.
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Assessment & feedback
Agreement on non-dom classification was not addressed
Attracting Wealth
Tax Revenue
Response accuracy
Q22
Partial Answer
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Context
The cost of living crisis is affecting household incomes, particularly for young homeowners.
The Westminster-made cost of living crisis is having a devastating impact on household incomes, particularly in Broomhouse, where many young homeowners are seeing mortgage prices soaring. Will the Chancellor use the autumn statement to introduce mortgage interest tax relief to help people across Glasgow to deal with the cost of living crisis?
The Government has taken steps to address cost-of-living pressures, but the Chancellor did not commit to introducing mortgage interest tax relief.
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Assessment & feedback
Commitment to mortgage interest tax relief was avoided
Steps Already Taken
Response accuracy