Topical Questions 2022-06-28
2022-06-28
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The UK is experiencing global inflation. The government has provided £37 billion in support.
In common with countries around the world, the UK is experiencing global inflationary forces. Will the Chancellor make a statement on his departmental responsibilities to address this issue?
In common with countries around the world, the UK is experiencing global inflationary forces. We are taking action to support the country through that, with £37 billion of support targeted at the most vulnerable, but also focused on the long term in combating inflation and reducing prices through supply-side reforms, responsible fiscal policy, and a strong and forceful independent monetary policy.
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Q2
Direct Answer
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Many small businesses are struggling due to high energy costs.
Many people are grateful to the Chancellor for all the support he has given to help people with their energy bills, but many businesses are also struggling with very high energy bills. Will he consider giving further support to businesses to help them through that, preferably through cutting their taxes?
My hon. Friend is a champion of all the small businesses in his constituency, and rightly so. They have endured the pandemic and are bouncing back strongly on the other side, and we want to support that. On tax cuts, I hope he can reassure his small businesses that this year they are benefiting from two specific tax cuts—a cut of about £5,000 in business rates for a typical pub; and with the increase in the employment allowance, a cut of £1,000 on national insurance contributions—and we will of course support them in the years to come.
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Q3
Partial Answer
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Working people have less money to spend due to inflation, leading to low consumer confidence.
Consumer confidence is at its lowest level since records began because working people have less money to spend. Does the Chancellor realise that, to avoid a cost of living calamity, he must address the stagnant wage crisis created by Tory policies?
On wage policy, this is the Government who introduced the national living wage and, this year, increased the national living wage by about £1,000 a year. Combined with the cut to the universal credit taper rate and the increase in the national insurance threshold, that is significant support to those on the lowest earnings.
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Assessment & feedback
Did not address stagnant wages specifically caused by Tory policies or provide additional measures beyond existing initiatives
Rightly So
Reassure
Response accuracy
Q4
Partial Answer
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Context
4.8 million people in Britain are paid less than a real living wage, including cleaners, caterers, and security guards employed by the Government.
Some 4.8 million people in Britain are paid less than a real living wage. That includes cleaners, caterers and security guards employed by the Government. Will the Chancellor guarantee that all those who work for Government, whether directly or through a contractor, will be paid a real living wage from now on?
We want everyone to be paid the national living wage. That is the law in this country. I am proud that we have increased it by £1,000 this year, which, combined with our tax cuts, is putting more money in the pockets of the lowest paid.
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Assessment & feedback
Did not guarantee a real living wage for all government workers or contractors
Proud
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Q5
Partial Answer
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The Chancellor is familiar with opportunities for economic growth in northern Lincolnshire.
The Chancellor is familiar with the opportunities in northern Lincolnshire and the wider Humber region to advance economic growth; what plans does he have to develop the infrastructure and support local authorities to achieve that?
My hon. Friend is a fantastic champion for his region and his support for a freeport on the Humber has been noted across Government. We are of course investing in our levelling-up programme, which has a direct bearing on areas such as the Humber.
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Assessment & feedback
Did not provide specific plans or timelines for infrastructure development
Fantastic Champion
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Q6
Partial Answer
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HMRC is failing to use international agreements to investigate tax evasion.
Recently, it was revealed that Her Majesty's Revenue and Customs is failing to use the third-party data information that we get through international agreements to investigate how much tax is being evaded through offshore assets. Given that £850 billion is held offshore, with two thirds of it stashed in known tax havens, either Ministers are content for the super-rich to evade paying their fair share in the knowledge that their offshore wealth is not being systematically checked, or they will direct HMRC to use this reporting data.
I am proud that HMRC is a leader in tax transparency, has a number of double tax treaties and co-operates with a large number of countries and international organisations to share tax information to ensure that people pay their fair share.
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Assessment & feedback
Did not address the specific issue of HMRC's use of third-party data
Proud
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Q7
Direct Answer
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Those on means-tested benefits will receive £1,200 in support from the Government this year.
The global cost of living crisis is affecting many of our constituents, so it is welcome that those on means-tested benefits—one in three households—will receive £1,200 in support from the Government this year. When will that vital support be hitting bank accounts?
My hon. Friend is right to highlight the need to target support on those who most need it. I am pleased to tell him that the payments will be made for those on means-tested benefits in July, with the second of those payments following a few months later, in the autumn, for those on tax credits, so that deduplication can be done.
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Q8
Partial Answer
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The Scottish Government is pursuing a referendum, which the Chancellor has criticized.
In his answer to my hon. Friend the Member for Glasgow Central (Alison Thewliss), the Chancellor boasted about not investing in tackling child poverty or supporting carers unlike the Scottish Government. May I suggest that instead of boasting about the social insecurity system, he tries looking at and replicating the Scottish child payment and the carer's allowance supplement?
My right hon. Friend the Chancellor set out very clearly the choices the Scottish Government made at their most recent spending review, on which they can be judged. Let us be very clear: it is the Scottish Government and the Scottish Government alone who are wasting millions of pounds of this country's and indeed their country's citizens by pursuing a referendum. That is the last thing that Scotland or the UK needs, soaking up resources that should be spent on people who need them.
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Assessment & feedback
Replicating Scottish child payment and carer's allowance supplement
Changed Subject To Criticism Of Scottish Government
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Q9
Partial Answer
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The east of England is the only region without a dedicated children's hospital and the Government have committed £100 million to build Cambridge Children's Hospital.
It has recently got planning permission, and its designs were shown last week to the Duke and Duchess of Cambridge. Will my right hon. Friend the Chancellor or the Chief Secretary to the Treasury commit to working with me to make sure that the hospital is built on schedule?
This Government are determined to deliver for the people of Cambridgeshire. My colleagues at the Department of Health and Social Care will have heard my hon. Friend's comments about the importance of this facility, and that is why we are investing £4.2 billion in new hospitals over the course of this Parliament.
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Assessment & feedback
Commitment to work with questioner on hospital schedule
Broad Statement About Hospital Investment Without Specific Commitment
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Q10
Partial Answer
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Park home residents are concerned about whether they will receive the same support as other households for energy bills.
The recent announcement by the Chancellor on support with energy bills was welcome, but I remain deeply concerned that my constituents living in park homes may not receive the same support. Will the Chancellor confirm a firm commitment to ensure that park home residents do not miss out on this vital support?
The hon. Member makes an important point about people living in park homes and we are determined to ensure that people receive help with the increase in energy costs. The Department for Business, Energy and Industrial Strategy has been consulting on how we deliver support to people living in places such as park homes that do not have the same electricity or energy supply as others.
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Assessment & feedback
Commitment to ensure park home residents receive energy bill support
Broad Statement About Consulting On Delivery Without Firm Commitment
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Q11
Direct Answer
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My constituent Andy Cornthwaite informed me that he was struggling to employ extra staff due to the current VAT threshold of £85,000.
I am aware that my right hon. and learned Friend recently responded to a written question from my hon. Friend on the subject, but will she consider an early review of the VAT threshold due to the increase in labour or materials costs for small and medium-sized enterprises?
The Government recognise that accounting for VAT can be a burden on small businesses. That is why we maintain the highest VAT registration threshold in the OECD and as compared with EU member states. At spring Budget 2021, to give businesses certainty, it was announced that the VAT threshold would be maintained at its current level until March 2024. Although there are no plans to change the VAT threshold at this time, we keep all taxes under constant review.
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Q12
Partial Answer
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The Government announced a small real-terms increase in local authorities' spending power at last year's spending review.
Has the Chancellor seen the recent assessment from the Local Government Association showing that, with inflation now higher than expected, it will cost local councils £2.4 billion extra this year? What steps will he and the Levelling Up Secretary take to have talks with the LGA about extra help for local authorities so that we do not get another round of austerity?
Of course, we invested £1.6 billion in local authorities in each year of the spending review precisely to help them with all responsibilities they must discharge. I would say to all Departments and devolved Administrations that if we are to live within the spending review, it is vital that they make responsible choices about how to deliver services at best value to the taxpayer. We cannot be in a situation where we chase after inflationary pressures as that will only worsen and prolong the crisis we face.
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Assessment & feedback
Commitment to talk with LGA for extra help
Broad Statement About Responsible Choices Without Firm Commitment
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Q13
Direct Answer
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My constituents want to see a low-tax, high-growth economy where work and productivity are prioritised.
Will my right hon. and learned Friend assure me that the next move in taxes will be downwards and that that will happen at the first available opportunity?
The Chancellor set out at the spring statement that he would be cutting taxes. We have seen that already in the universal credit taper rate and in the increase in the national insurance contributions threshold to £12,570, which will come in just a few weeks. We have also announced that income taxes will be cut in 2024.
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Q14
Partial Answer
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Small businesses in Ceredigion have told me how increasing electricity and fuel costs are impacting their operating costs.
They are concerned that those costs are being disproportionately felt in rural areas. Does the Treasury share that assessment? Will it consider bringing forward bespoke measures to support the rural economy?
The hon. Member and I met recently to speak about the cost of fuel in rural areas. As I also represent a rural constituency, I appreciate his point. The cut that we made to fuel duty is benefiting people in rural areas as well as those across the whole country. That combined with the duty freeze is £5 billion worth of help for people.
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Assessment & feedback
Bringing forward bespoke measures for the rural economy due to rising costs
Broad Statement About Fuel Duty Cut Without Firm Commitment
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Q15
Direct Answer
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The country is experiencing high tax burdens since the 1950s, although recent efforts have focused on reducing taxes rather than increasing them. With current elevated levels of inflation, drastic tax cuts are not advisable.
I am concerned about our country's highest tax burden since the 1950s and acknowledge that my right hon Friend the Chancellor has been bringing taxes down more recently. However, with inflation at high levels, now is not the time for dramatic cuts but once inflation starts to recede, particularly at the end of this year or into next year, we will have an opportunity to introduce serious tax cuts to drive growth and job creation.
I thank my right hon Friend for his constructive dialogue on these issues. I direct him to our spring statement's tax plan which indicates our direction of travel, including upcoming tax cuts in a day's time to help with the cost of living, more cuts in the autumn to drive business investment and innovation, followed by further personal taxation cuts when stability is achieved.
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Q16
Partial Answer
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Many unpaid carers are facing financial hardship due to increased energy bills, which can lead to significant difficulties for those relying on electricity-powered equipment.
Unpaid carers have seen their bills soar during this cost of living crisis. The Government decided last month to exclude hundreds of thousands of state pension age carers from the £650 support package by not including carer's allowance in qualifying benefits, risking even more financial hardship for unpaid carers.
The hon Lady pays tribute to those who care for others. Of the 1 million in receipt of carer's allowance, over 60% will be in households receiving £650 or disability payments. Carer's allowance itself is not a means-tested benefit.
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Assessment & feedback
Reconsidering excluding unpaid carers from the cost of living support package
Reassuring That Many Will Receive £650
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Q17
Direct Answer
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Investment in low-carbon energy infrastructure is critical for job creation, especially in coastal constituencies.
I am concerned about the potential impact that changes to tax policy on electricity generators might have on investment in UK's clean, low-carbon energy infrastructure. Has my right hon Friend considered these impacts?
The Chancellor engages with industry stakeholders and supports low-carbon energy through various measures such as super deduction, R&D tax relief, broadening emissions trading scheme consultations, and £1 billion investment in the carbon capture and storage fund.
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Q18
Partial Answer
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The rural fuel rebate introduced ten years ago has not been adjusted for inflation, leading to higher costs in rural areas.
With the cost of living crisis and high inflation, there is a need to consider increasing the rural fuel rebate from 5p/litre to at least 10p/litre to help those affected by these price increases.
The hon Gentleman refers to the rural fuel relief scheme targeted at locations with higher than average fuel prices. Extending this might lead to unintended consequences like people driving further for cheaper fuel.
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Assessment & feedback
Increasing rural fuel rebate
Mentioning Potential Unintended Consequences
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Q19
Direct Answer
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Almost nine million people are economically inactive, including those who can work or have worked recently.
Getting more of the economically inactive back into work is key to filling the labour shortages we face. Does my right hon Friend agree that measures such as £1.1 billion in support for disability employment will help strengthen our economy?
My right hon Friend is correct and knows about this from his time as Secretary of State for Work and Pensions. The spending review provides over £1.1 billion to support disability employment, manage health in the workplace, and yield fantastic results through the Government's Way to Work programme.
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Q20
Partial Answer
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During the pandemic, £11.8 billion was lost to fraud according to various organisations.
Given the £11.8 billion lost to fraud during the pandemic, will the Chancellor publish a real-time dashboard on the recovery of public funds?
We provide regular updates on money lost to fraud and have shown our intention through targeted interventions against fraud, including the Public Sector Fraud Authority going live in July.
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Assessment & feedback
Publishing real-time dashboard for recovering public funds
Mentioning Regular Updates
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Q21
Partial Answer
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Legal bills for those involved in IR35 cases are often many times larger than the original tax bill, leading to financial hardship.
The law around IR35 is loosely defined, resulting in HMRC using tribunals and courts to clarify case law. This has led to legal costs that impoverish or bankrupt individuals. Will the Chancellor institute a review of this procedure?
IR35 was introduced to ensure people doing the same job pay the same tax, and my right hon Friend wishes to discuss issues with me. I look forward to discussing these matters later today.
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Assessment & feedback
Conducting a review of IR35 procedure
Saying He Wants To Discuss It
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Q22
Partial Answer
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TaxWatch UK reported a rising tax gap, with the current fraud tax gap standing at £14.4 billion or 45%. The issue includes estimated losses from HMRC-administered covid-19 support schemes.
TaxWatch UK has just published research showing that on a like-for-like basis, the tax gap—or the money lost every year through unpaid tax—has gone up for two years in a row. That is before we include in the figures the estimated amount lost to error and fraud through the HMRC-administered covid-19 support schemes. The tax gap resulting from fraud is now 45% and stands at £14.4 billion. When will the Government do something about that? They could perhaps create a fraud Minister with the remit of tackling this growing problem, which takes money from other parts of the economy.
The Government are taking a number of steps to tackle fraud, including coronavirus fraud. The taxpayer protection taskforce was set up to do specifically that. I will have a cross-governmental meeting this afternoon to understand how we can work across Departments to tackle fraud.
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Assessment & feedback
Specific actions or commitments on creating a fraud Minister were not mentioned
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