Topical Questions 2021-11-02
2021-11-02
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from a case where HMRC's advice led to higher settlements for individuals who resolved their issues before the Morse review recommendations were implemented.
My constituent Peter Phillips fell victim to the loan charge in 2019 and settled before 30 September 2020. HMRC advised him, like many others, that that was the right thing to do. In effect, those who settled before the Morse review did not get the benefit of the changes that were implemented: my constituent paid more than someone who disclosed nothing to HMRC. Does my right hon. Friend think that was in the spirit of the Morse review? Has HMRC got it wrong?
It is obviously difficult for me to comment on the case of a particular individual. The previous Chancellor, my right hon. Friend the Member for Bromsgrove (Sajid Javid), asked Lord Morse to conduct an independent review and the Government accepted and implemented the vast majority of its recommendations. People who settled early had the benefit of certainty from their settlement, but my hon. Friend should write to the Financial Secretary to the Treasury and we will ensure that we look at that case, as he requests.
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Assessment & feedback
Did not directly address if HMRC's advice was contrary to the Morse Review or acknowledge it being wrong.
Response accuracy
Q2
Partial Answer
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Context
According to the OBR, supply chain issues, inadequate post-Brexit planning, and a shortage of HGV drivers have led to higher inflation. The cost of living has increased significantly.
According to the Office for Budget Responsibility, the Government's supply chain chaos, woefully inadequate post-Brexit planning and a lack of HGV drivers have contributed to higher inflation. The cost of the weekly shop is already going up and up, as the Chancellor will have heard from shoppers in Bury last week. Does he have any idea of how much the average weekly supermarket shop is expected to increase in the next year for a typical family?
We are cognisant of and aware that there is price inflation; indeed, last week's Budget addressed that and explained to the British people some of the global factors that are behind the rise in prices and are not unique to this country. As I said then, where this Government can act, we will. Whether it is the interventions for HGV drivers that my hon. Friend the Exchequer Secretary to the Treasury set out, the £0.5 billion household support fund or, indeed, the freezing of fuel duty, this Government are doing what they can to help with the cost of living.
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Assessment & feedback
Did not provide specific figures on the projected increase in weekly shopping costs for a typical family.
Response accuracy
Q3
Partial Answer
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Context
The cost of the weekly shopping basket is expected to rise by £180, while gas and electricity bills have already increased by £139 and will continue to do so. The Chancellor has not provided a VAT cut for fuel as Labour had proposed.
Let me help the Chancellor with the answer to that question. The typical family shop is likely to go up by £180 more next year. It is not just food prices that are rising: gas and electricity bills are already up by £139 and they are only going to go up more. The Chancellor had the opportunity in the Budget to help people with their gas and electricity bills by reducing VAT to 0% through the winter months—something that Labour has called for and that the Prime Minister backed when he was campaigning to leave the European Union. Who should the public blame for VAT on heating bills not being cut: the Prime Minister, for not keeping his word, or the Chancellor, for choosing to cut taxes for bankers instead?
With regard to a VAT cut for fuel, perhaps I should point out to the hon. Lady some of the remarks from independent commentators about what that would do. The Institute for Fiscal Studies said that the benefit would accrue “to higher-income households.” The Resolution Foundation said a VAT cut
“would not be targeted and would be quite expensive”.
Tax Research UK said:
“This cut will not help the poorest much…this plan is a subsidy to the best-off, not the least well off.” Instead, we have provided £0.5 billion, targeted at those who need our help. The hon. Lady mentioned £108; the household support fund will be able to provide £150 to between 2 million and 3 million of the most vulnerable families in our country. Indeed, the national living wage is going up next year, which will ensure a £1,000 increase for someone who works full time on the national living wage, and because of the cut to the universal credit taper a single mother with two kids who works full time and rents will be £1,200 better off.
“would not be targeted and would be quite expensive”.
Tax Research UK said:
“This cut will not help the poorest much…this plan is a subsidy to the best-off, not the least well off.” Instead, we have provided £0.5 billion, targeted at those who need our help. The hon. Lady mentioned £108; the household support fund will be able to provide £150 to between 2 million and 3 million of the most vulnerable families in our country. Indeed, the national living wage is going up next year, which will ensure a £1,000 increase for someone who works full time on the national living wage, and because of the cut to the universal credit taper a single mother with two kids who works full time and rents will be £1,200 better off.
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Assessment & feedback
Did not directly address who is responsible for failing to reduce VAT on fuel or how it will be rectified.
Response accuracy
Q4
Partial Answer
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Context
The question concerns the Springfields site in Fylde, which is the only UK civil nuclear fuel manufacturing facility and faces international competition.
I thank the Chancellor for his commitment of £75 million to preserve civil nuclear fuel manufacturing in the UK. As my right hon. Friend will know, Springfields site in Fylde is the only civil nuclear manufacturing site in the UK, and efforts are ongoing to diversify projects undertaken on the site to safeguard its future. Will he agree to look into proposals to support manufacturing on the site and help beat off international competition to bring those jobs and skills to Springfields?
First, may I put on record my thanks to my hon. Friend, who raised this issue with me some months ago in the run-up to the spending review? I hope that he and his communities are pleased with the funding that was allocated, thanks to his and other interventions. I am of course prepared to work with him and the Secretary of State for Business, Energy and Industrial Strategy to consider all relevant proposals and assess the right options for the taxpayer in this country.
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Assessment & feedback
Did not commit to specific actions or timelines beyond being willing to consider further proposals.
Response accuracy
Q5
Partial Answer
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Context
The hospitality sector in Liverpool Riverside has been severely impacted by the pandemic, representing up to 20% of the economy and accounting for significant job losses and business closures.
Hospitality is one of the major sectors in Liverpool, Riverside, representing up to 20% of the economy and accounting for 50,000 jobs and 4,000 businesses this time last year, but, sadly, many have been forced to close due to covid. While the freeze on VAT on hospitality until April next year is welcome, the 50% hike to bring it up to 20% in six months' time is causing a real panic to small businesses in my constituency. Will the Chancellor acknowledge that the planned hike to VAT in hospitality poses a significant risk to our economic recovery and that what we need now are measures that shore up our recovery rather than slow it down?
We did have a measure in last week's Budget to support the hospitality sector with its recovery, and that is the £1.7 billion cut to business rates next year. That represents the largest single-year cut to business rates in more than 30 years outside of the coronavirus. It provides a 50% discount to hospitality businesses, which I know are important to our local communities. I am sad that the hon. Member did not raise the not one but two levelling-up fund bids that Liverpool enjoyed last week, which I know will also help to regenerate parts of the city and provide improved transport connections to benefit local businesses.
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Assessment & feedback
Did not acknowledge the risk posed by increasing VAT on hospitality or propose specific measures to shore up recovery.
Response accuracy
Q6
Direct Answer
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Context
The High Peak missed out on the first round of levelling-up funding, but has since agreed to submit a bid.
Last week's Budget included positive news for the High Peak such as tax cuts and business rate relief. However, other towns received millions in investment through the levelling-up fund. As High Peak missed out due to a late submission from Labour council, can the Chancellor assure that there will be a second round and High Peak will still receive priority?
I am happy to provide my hon. Friend with that reassurance and I hope that his council engages constructively with him, as so many others have and have seen the benefits of that in last week's announcements. We will open round 2 in due course and it will most likely launch no later than the spring. I can tell him also that we have no plans to change the current way that we assess the priority categorisations, so High Peak should remain as it was.
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Assessment & feedback
Response accuracy
Q7
Partial Answer
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Context
A Conservative donor allegedly claimed that the party was involved in an access capitalism scheme for donors, while also being associated with a £162 million bribe.
Does the Chancellor agree with Mohamed Amersi's claim about Tory donors' involvement in an access capitalism scheme and corruption? Given this context, can he bring forward the Registration of Overseas Entities Bill?
The Government are committed to making the UK a hostile place for illicit finance and economic crime, ensuring all donations comply with legislation. We have taken tough action through our No Safe Havens strategy and 2019 economic crime plan. We will continue to work on these matters.
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Assessment & feedback
The specific ask about the Registration of Overseas Entities Bill was not directly addressed.
Working On These Matters
Response accuracy
Q8
Partial Answer
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Context
Evidence Week highlights the need for evidence-based decision-making, especially regarding the proposed lower Thames crossing.
Considering Evidence Week, does the Chancellor believe that the proposed lower Thames crossing still represents value for money?
The Dartford crossing is one of the most congested pinch points in the strategic road network, and the Thames crossing development aims to mitigate this. National Highways has recently launched a consultation for this project.
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Assessment & feedback
The specific ask about value for money was not directly addressed.
Focused On Impact
Response accuracy
Q9
Partial Answer
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Context
The Chancellor's decision to reform domestic air passenger duty during COP26 week.
Instead of incentivising low-carbon forms of transport, the Chancellor's reforms are making travel more expensive for those alternatives. How does this contribute to the Government's net zero efforts?
The cut in domestic air passenger duty is accompanied by a new ultra-long-haul band and investment in sustainable aviation fuel. The net effect on carbon emissions is expected to be neutral or even reduce them, according to an independent forecaster.
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Assessment & feedback
The specific ask about incentivising low-carbon transport was not directly addressed.
Significant Investment
Response accuracy
Q10
Partial Answer
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Context
New homes are being built in Leighton Buzzard and Houghton Regis, raising concerns about the need for increased healthcare infrastructure.
With many new homes planned, will the Government ensure that there is a direct link between these developments and an increase in general practice capacity?
The Government's core housing supply programmes include £1.5 billion for infrastructure and reforms to NHS capital regime will improve integration between health providers, local government, and care.
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Assessment & feedback
The specific ask about linking new homes with GP capacity was not directly addressed.
Focused On Infrastructure
Response accuracy
Q11
Partial Answer
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Context
Many Members want to engage in the levelling-up fund process, but lack clarity on round 2 bidding timelines.
The Chancellor confirmed a spring opening for round 2 of the levelling-up fund bids. Can he provide more specific dates for the conclusion of this process?
We want to ensure we learn lessons from the first round and incorporate them into future rounds. We are keen to get on with this process so that communities can start seeing benefits as soon as possible.
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Assessment & feedback
The specific ask about a clear timeline was not directly addressed.
Focused On Lessons
Response accuracy
Q12
Partial Answer
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Context
Eastbourne received £19.8 million from the levelling-up fund, while local businesses can benefit from the kickstart scheme.
Thanking the Chancellor for Eastbourne's funding and kickstart opportunities, will the Minister encourage more local businesses to take advantage of these before the 17 December deadline?
I know that my hon. Friend will have campaigned hard for the funds that have come through. We will continue to support people across the House and in her constituency to level up.
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Assessment & feedback
Response accuracy
Q13
Direct Answer
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Context
Local councils face significant financial pressures, with a substantial rise in council tax needed due to the Budget.
Rather than talk about competitive bids for funding, could we discuss mainstream council finances? The Budget will significantly shift the burden to local authorities and require a significant rise in council tax. Councils' finances have not fully recovered and they have not been fully compensated. What is the Chancellor doing to talk to local councils about pressures?
I did engage with representatives from local authorities in the run-up to the spending review. Last week's spending review outlined an additional £1.6 billion a year of cash grant for local authorities, ensuring local government core spending power will rise at about 3% a year in real terms over the spending review period; this is historically high and warmly welcomed by councils up and down the country, allowing council tax increases to be kept at more moderate levels.
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Assessment & feedback
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Q14
Partial Answer
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Context
The city of Stoke-on-Trent received £56 million from the levelling-up fund. The question is about whether this funding will target grassroots community capacity-building investment.
Thanking my right hon. Friend for the £56 million for three innovative levelling-up bids in Stoke-on-Trent, which has warmly welcomed as the biggest investment for 50 years. However, investing in our social fabric and growing local social infrastructure must be community-led to achieve best results. Will he update this House on whether the shared prosperity fund will target grassroots community capacity-building investment?
The £56 million Stoke-on-Trent was awarded in the first round of the levelling-up fund for regeneration projects across the city. The UK shared prosperity fund, worth over £2.6 billion, will allocate funding across the UK. Further details of the fund will be set out later this year.
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Assessment & feedback
The response did not directly address whether grassroots community capacity-building investment would be a specific target for the shared prosperity fund.
Will Allocate Funding Across Uk
Response accuracy
Q15
Partial Answer
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Context
A women-run firm in Acton diversified into mask manufacturing during the pandemic but is struggling with reduced orders post-pandemic.
Fashionizer, a women-run firm making uniforms for hotels that diversified to make masks, now has an order book just one-third of what it was before. They ask if the Chancellor could extend rate relief for hospitality suppliers, including food and laundry services, like themselves. Some masks were given as gifts.
We have moved out of crisis phase now, so our interventions to support the economy are broader in scale. I am confident that measures such as investing in infrastructure, innovation and skills will lead to economic growth and benefit her businesses.
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Assessment & feedback
The Chancellor did not address whether rate relief would be extended for hospitality suppliers.
Interventions Are Broader
Response accuracy
Q16
Direct Answer
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Context
A new simplified alcohol duty system was announced to promote public health and reduce harm from alcohol.
I commend the Chancellor for announcing a simplified alcohol duty system in the Budget that taxes drinks according to their strength, geared towards promoting public health. Does he agree this will encourage innovation and lower-strength drinks? Will he meet me to discuss alcohol harm?
We are overhauling UK's outdated alcohol duty rules, taxing drinks according to their strength. This approach encourages responsible drinking and tackles problems caused by cheap high-strength drinks.
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Assessment & feedback
Response accuracy
Q17
Partial Answer
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Context
The Chancellor broke a promise to introduce a bespoke support package for the aviation sector, instead offering other support schemes.
The Chancellor promised a bespoke support package for the aviation sector before breaking his word. Instead these businesses will have to make use of other support schemes, including time to pay. What does he say to those now hit by interest charges due to pandemic impact?
HMRC's time to pay service has supported tens of thousands of businesses through the crisis, offering flexible repayment periods. The bounce back loan scheme introduced by my hon. Friend comes with a pay-as-you-go option to ensure businesses can settle on a payment plan.
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Assessment & feedback
The response did not address the specific issue of interest charges faced by aviation companies.
Time To Pay Service Supports
Response accuracy
Q18
Direct Answer
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Context
Pubs and brewers are pleased with beer duty reduction but seek clarification on keg size and future changes to the small brewers relief.
My pubs and brewers are pleased with the reduction in beer duty, but may we have clarification on keg size for my small brewers who ship their beer in different sizes? May I also have an indication of when the changes to the small brewers relief will be announced?
We are delighted to introduce the draft relief for supporting the on trade purchasing drinks in pubs. We will consult on the details including keg size, and also bring forward technical changes to small brewers relief.
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Assessment & feedback
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Q19
Partial Answer
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Context
The Budget allocated £7.8 billion to climate and nature mitigation, far short of the required £62.9 billion.
The Budget was described as climate-illiterate with only £7.8 billion given when £62.9 billion is needed to reach 2024 targets. How will the Chancellor close this gap or is the Prime Minister's performance at COP26 a façade?
We have committed to £30 billion net zero strategy just before this fiscal event, with clear evidence of how we are moving to ensure we double down on international commitments.
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Assessment & feedback
The Chancellor did not address the funding shortfall for climate and nature mitigation.
Net Zero Strategy
Response accuracy