Author: admin

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the likely costs in administering changes to IR35 on public sector contracts; whether these costs will fall on public sector organisations; and what estimate his Department has made of the net gain to the Exchequer resulting from those changes.

Jane Ellison

Her Majesty’s Revenue and Customs (HMRC) has formally consulted with stakeholders, including a large number of public sector organisations on the impacts of the changes. The Government is analysing these responses and will respond in due course.

Changes to off-payroll working in the public sector will make the engager responsible for deducting and paying associated tax and National Insurance where the intermediary rules apply. These changes will increase compliance with existing rules, rather than introducing a new tax liability. It is right that public sector bodies ensure that their workers are paying the correct amount of tax. At Budget this year, the Government published an estimate of the Exchequer yield as a result of these changes. This totalled around £550 million over the scorecard period, to 2021.

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 September 2016 to Question 44306, what assessment he has made of the effect of his Department’s policies on trends in shifts from bonuses to salaries in the financial sector; and what plans he has to tackle income inequality in the UK.

Simon Kirby

The UK is at the forefront of global efforts to tackle unacceptable pay practices in the banking sector and has the toughest regime on pay of any major financial centre.

Firms are now required to have policies in place to defer, reduce, cancel or clawback bonuses in the event that poor performance or misconduct comes to light and the Government expects firms to be proactive in their application of these policies. Used in this way bonuses can be an effective incentive for staff to act in the long term interests of a business.

The Government’s efforts have resulted in a restructuring of pay including a significant reduction in cash bonuses, and a better alignment of risk and reward in the financial sector.

Income inequality is lower than it was in 2010, and close to its lowest level since the mid-1980s. Furthermore, distributional analysis published by the Treasury alongside Budget 2016 shows that the richest fifth of households are projected to pay a greater proportion of taxes in 2019-20 than in 2010-11 as a result of government policy – and more than all other households put together.

The government is committed to making Britain a country that works for everyone through tacking injustices and ensuring that everyone, whatever their background, is able to go as far as their talents can take them.

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 September 2016 to Question 44306 and with reference to ONS figures detailing the record amount of bonuses paid in Great Britain last year, released in Average weekly earnings, bonus payments in Great Britain: financial year ending 2016, on 15 September, what assessment he has made of the effectiveness of his policies in curbing excessive performance bonuses; and what plans he has to tackle inequality in performance bonuses between industry sectors.

Simon Kirby

The UK is at the forefront of global efforts to tackle unacceptable pay practices in the banking sector and has the toughest regime on pay of any major financial centre.

Firms are now required to have policies in place to defer, reduce, cancel or clawback bonuses in the event that poor performance or misconduct comes to light and the Government expects firms to be proactive in their application of these policies. Used in this way bonuses can be an effective incentive for staff to act in the long term interests of a business.

The Government’s efforts have resulted in a restructuring of pay including a significant reduction in cash bonuses, and a better alignment of risk and reward in the financial sector.

Outside the financial services sector, it is for businesses to decide how they remunerate their employees provided minimum legal requirements are met. The ONS statistics show that bonuses as a percentage of total pay for sectors other than finance and insurance have remained relatively stable since 2000 at an average of 4.0%.

The Government intends to publish a consultation document later this year that will set out a range of options for strengthening corporate governance and the way executive pay is set and reported, including greater disclosure of the targets that trigger bonus payments to company directors.

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 September 2016 to Question 44480, through what mechanisms devolution deals will reduce regional variations in tax generation.

Mr David Gauke

The government has devolved significant powers and funding from central government to city regions through devolution deals, including powers over transport, skills and planning. Devolution is about bringing together key levers at the right functional economic geography to drive economic growth. This will empower local leaders to invest money where it is most needed, to create high-quality jobs and boost local economic growth.

The government has also announced that it will pilot the move to 100% business rate retention with Greater Manchester and the Liverpool City Region, and that this offer is open to other mayoral combined authorities, ensuring local areas and communities see the benefits of supporting businesses and jobs through increased local tax receipts.

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask the Secretary of State for Health, with reference to the Government Actuary’s Department report, A cohort approach to social care funding, published on 15 September 2016, what assessment he has made of the potential effectiveness of his Department’s policies on meeting the pension and social care needs of the millennial generation; and if he will bring forward proposals for a cohort approach to social care funding in his Autumn Statement.

David Mowat

Social care continues to be a key priority for this Government. It is critical in enabling people with care and support needs to retain their independence and dignity. That is why we have already introduced landmark reforms to ensure people should not have to sell their home in their lifetime to meet the cost of care and we have set out plans to cap the amount that people will need to spend to meet their cost of care.

We are mindful of the changing demographic of our population and the evidence produced from the Foresight ‘Future of Ageing Population’ project and are looking in the longer term about how best to respond to the challenges ahead. Decisions about the Autumn Statement are a matter for the Treasury.

The below Parliamentary question was asked by Steve McCabe on 2016-10-07.

To ask the Secretary of State for Communities and Local Government, pursuant to the Answer of 12 September 2016 to Question 44480, what monitoring mechanisms are in place to collect data on the effects of his Department’s devolution policies.

Andrew Percy

The Government believes that local areas are best placed to monitor the effects of devolution policies within their locality. All devolution deals include a commitment to putting in place a monitoring and evaluation plan, which is locally developed and administered with government support and signed off by government.

Combined authorities are also required to have local scrutiny committees, helping to ensure that those best placed to monitor devolution activity are empowered to do so.

It is the government’s view that this is an appropriate and proportionate approach to decentralising power.