Topical Questions

Answer from Rishi Sunak

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.

Answer from Rishi Sunak

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.

Answer from Rishi Sunak

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.

Answer from Rishi Sunak

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.

Answer from Simon Clarke

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.

Answer from Lucy Frazer

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.

Answer from Rishi Sunak

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.

Answer from Simon Clarke

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.

Answer from Simon Clarke

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.

Answer from Helen Whately

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.

Answer from Lucy Frazer

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.

Answer from Simon Clarke

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.

Answer from Lucy Frazer

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.

Answer from Helen Whately

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.

Answer from Rishi Sunak

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.

Answer from Rishi Sunak

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.

Answer from Lucy Frazer

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.

Answer from Helen Whately

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.

Answer from Simon Clarke

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.

Answer from Simon Clarke

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.

Answer from Lucy Frazer

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.

Answer from Lucy Frazer

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.