Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 14 November 2023 · 22 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 2 Partly answered 17 Not answered 0

Key points

  • Marco Longhi asked the Chancellor about boosting the self-employed and small businesses by increasing the VAT threshold to 250,000 for new registrations.
  • Rachel Reeves questioned the Government's handling of the covid inquiry, highlighting that HMRC's compliance efforts have recovered over 1.6 billion of grants from fraud.
  • Kim Leadbeater raised concerns about the potential closure of vital public services in her constituency due to cuts imposed on Kirklees Council since 2010, prompting the Treasury to assure ongoing discussions with the Communities Secretary about local authority financial pressures.

Topics (select to filter)

Questions & Answers

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.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: 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.

How: Under Review

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Q2 Rachel Reeves Lab Leeds West and Pudsey
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.

Question

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?

Answer from Jeremy Hunt

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.

Answered
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Q3 Rachel Reeves Lab Leeds West and Pudsey
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.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: 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.

How: No Quarter With Any Incidence Of Fraud

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Question

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?

Answer from Jeremy Hunt

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.

Partly answered

How: Will Look Into The Issue Carefully

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Q5 Kim Leadbeater Lab Spen Valley
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.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

How: Want To Reassure, Having Extensive Discussions

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Q6 Harriett Baldwin Con West Worcestershire

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

How: See Whether It Is Possible

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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.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: Specific assessment of local housing allowance rates

How: Under Review

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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.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: Specific support or action on Baroness Altman's Bill

How: Under Review

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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.

Question

Was the former Chief Secretary sacked for highlighting the Government's tax burden, which is the highest for 70 years?

Answer from Jeremy Hunt

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.

Not addressed: Reason for sacking the former Chief Secretary

How: Changing Subject

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Q10 David Mundell Con Dumfriesshire, Clydesdale and Tweeddale
Context

The whisky industry in Scotland is vital to the economy. The policy of a duty freeze was not continued in the Budget.

Question

Can we return to the policy of duty freeze on whisky for next autumn statement and Budget?

Answer from Gareth Davies

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.

Partly answered

Not addressed: Specific commitment on duty freeze for next fiscal events

How: Under Review

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Q11 Richard Burgon Lab Leeds East
Context

Banks are making bumper profits due to higher interest rates, but the Government is reducing surcharge on bank profits.

Question

With people supporting a windfall tax on excess bank profits, will the Government do the same?

Answer from Bim Afolami

We have a globally competitive tax regime and do not apologise for it. The reduction in levy was offset by rising corporation tax.

Not addressed: Windfall tax on excess bank profits

How: Changing Subject

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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.

Question

Does the Exchequer Secretary agree that Darlington Economic Campus is a fantastic levelling-up project ensuring people can stay local but go far?

Answer from Gareth Davies

The Darlington Building Society visit was important, and the Darlington campus is an integral part of our Treasury levelling-up agenda.

Answered
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Q13 Stephanie Peacock Lab Barnsley South
Context

More than 3 million households owe £2.7 billion in the unregulated buy now, pay later sector, prompting Labour to propose urgent regulation.

Question

When will the Government regulate the unregulated buy now, pay later sector as proposed by Labour?

Answer from Bim Afolami

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.

Partly answered

Not addressed: Specific timeline for regulations

How: Under Review

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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.

Question

While the shadow Chancellor was busy scrolling through Wikipedia, will the actual Chancellor implement the New Conservatives tax plan?

Answer from Jeremy Hunt

We are committed to lowering the tax burden and will do so as soon as it is responsible.

Partly answered

Not addressed: Specific measures from New Conservatives plan

How: Under Review

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Q15 Samantha Dixon Lab Chester North and Neston
Context

Recent increases in mortgage rates have impacted many homeowners in Chester.

Question

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?

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: Specific steps to reduce mortgage rates were not provided

How: Global Phenomenon, No Short Cut

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Q16 Luke Evans Con Hinckley and Bosworth
Context

Businesses in the region are facing difficulties with the current red tape around the apprenticeship levy.

Question

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.

Answer from Jeremy Hunt

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.

Partly answered

Not addressed: Specific reforms were not mentioned

How: Fundamental Principle

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Q17 Rachael Maskell Labour (Co-op) York Central
NHS
Context

The NHS dental plan has been delayed, causing long wait times for patients.

Question

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?

Answer from Jeremy Hunt

I will not pre-empt what I am going to say next week, but I acknowledge the pressures on NHS dentistry.

Partly answered

Not addressed: Release of dental plan and funding was not confirmed

How: Pre-Empt

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Context

The questioner suggests that inheritance tax is unpopular and proposes its removal.

Question

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?

Answer from Jeremy Hunt

The suggestion was noted but no commitment was made.

Partly answered

Not addressed: No clear commitment to remove inheritance tax

How: Nice Try

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Q19 Gareth Thomas Labour (Co-op) Harrow West
Context

A small trial of the opt-out savings system in Manchester has shown promising results.

Question

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?

Answer from Jeremy Hunt

The Chancellor is willing to consider expanding the opt-out savings system.

Partly answered

Not addressed: No specific plans for expansion

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Q20 Greg Smith Con Mid Buckinghamshire
Context

Synthetic fuels are taxed at the same rate as fossil fuel equivalents, which could be an issue.

Question

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?

Answer from Jeremy Hunt

The Chancellor will look into the issue in detail.

Partly answered

Not addressed: No specific action or timeline provided

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Q21 Alison McGovern Lab Birkenhead
Context

The Chancellor's colleague referred to non-domiciled individuals as 'poor old non-doms', which is inaccurate.

Question

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?

Answer from Jeremy Hunt

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.

Not addressed: Agreement on non-dom classification was not addressed

How: Attracting Wealth, Tax Revenue

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Context

The cost of living crisis is affecting household incomes, particularly for young homeowners.

Question

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?

Answer from Jeremy Hunt

The Government has taken steps to address cost-of-living pressures, but the Chancellor did not commit to introducing mortgage interest tax relief.

Partly answered

Not addressed: Commitment to mortgage interest tax relief was avoided

How: Steps Already Taken

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