The below Parliamentary question was asked by George Kerevan on 2015-10-21.
To ask Mr Chancellor of the Exchequer, if he will assess the potential effects of the Japanese deflation on the UK economy.
Harriett Baldwin
The Treasury continuously monitors global economic developments, including Japanese inflation developments, and their impact on the UK as part of the normal process of policy development.
The below Parliamentary question was asked by George Kerevan on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what his most recent assessment is of the effect of the Help to Buy scheme on house prices.
Harriett Baldwin
The Financial Policy Committee (FPC) assess the impact of the Help to Buy: mortgage guarantee scheme on an annual basis. The most recent review was carried out by the FPC in September 2015. The FPC’s view was that the scheme has not been a material driver of house price growth.
The below Parliamentary question was asked by Stewart McDonald on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on small investors of planned restrictions on the relief on finance costs for landlords of residential property.
Mr David Gauke
The government does not expect the restriction to tax relief for finance costs to have a significant impact on small investors, with only 1 in 5 landlords affected. Overall, the OBR believe the impact on the housing market will be small and, taking account of the other measures in the Summer Budget, have not adjusted their forecast for house prices. The Productivity Plan published alongside the Summer Budget will also increase the number of opportunities available to small investors. It includes a number of measures to make the planning system quicker, cheaper and more responsive to local needs.
The below Parliamentary question was asked by Jonathan Edwards on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what representations he has received from the Welsh Government on the Barnett consequentials for Wales resulting from public expenditure on High Speed 2.
Greg Hands
Treasury Ministers are in regular contact with Welsh Government Ministers on a variety of matters.
The below Parliamentary question was asked by Bill Wiggin on 2015-10-21.
To ask Mr Chancellor of the Exchequer, if he will allocate a proportion of fuel duty receipts to the repair of roads.
Damian Hinds
At the Summer Budget the government announced the creation of a Roads Fund so that from 2020 all money raised from VED in England will be invested in the Roads Fund and used to improve the English strategic road network. The latest figures for VED revenue can be found in Table C.3 of Summer Budget 2015, which can be found here https://www.gov.uk/government/publications/summer-budget-2015. Revenue raised for previous years can be found in the relevant Budget document.
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The below Parliamentary question was asked by Bill Wiggin on 2015-10-21.
To ask Mr Chancellor of the Exchequer, if he will allocate a proportion of road tax receipts to the repair of roads.
Damian Hinds
At the Summer Budget the government announced the creation of a Roads Fund so that from 2020 all money raised from VED in England will be invested in the Roads Fund and used to improve the English strategic road network. The latest figures for VED revenue can be found in Table C.3 of Summer Budget 2015, which can be found here https://www.gov.uk/government/publications/summer-budget-2015. Revenue raised for previous years can be found in the relevant Budget document.
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The below Parliamentary question was asked by Stewart Jackson on 2015-10-21.
To ask Mr Chancellor of the Exchequer, how many and what proportion of recipients of working tax credits in Peterborough constituency are citizens of non-UK EU member states; and if he will make a statement.
Damian Hinds
The information requested is not available. The Summer Budget offered a new deal for working people. It means Britain moving from a high welfare, high tax, low wage economy to a lower welfare, lower tax, higher wage society.
A new National Living Wage for workers aged 25 and above, initially set at £7.20 per hour from April 2016, will directly benefit 2.7 million low wage workers, and up to 6 million could see a pay rise as a result of a ripple effect up the earnings distribution. The new National Living Wage will boost pay for those currently earning the National Minimum Wage by £4,800 a year by 2020 when the National Living Wage is expected to rise to over £9 per hour.
To help working families keep more of what they earn, the personal allowance will increase to £11,000 in 2016-17 and £11,200 in 2017-18. The government has committed to increase the personal allowance to £12,500 by 2020 which will mean that a typical basic rate taxpayer will see their income tax cut by £1,205 a year compared to 2010.
An illustrative renting family with two children, where one parent works full-time on the minimum wage, will be over £2,400 better off in cash terms by 2020.
The government set out its assessment of the impacts of the Summer Budget policies in the Welfare Reform and Work Bill on 20th July 2015. Taken together, the introduction of the National Living Wage, increases in the personal allowance and welfare changes mean that 8 out of 10 working households will be better off as a result of the Summer Budget.
In response to a request from the Secondary Legislation Scrutiny Committee, the government has chosen to produce and release an impact assessment on the tax credit changes to the Committee. The impact assessment shows that 60% of the tax credit savings come from the half of tax credit claimants with the highest income.
The below Parliamentary question was asked by Christopher Chope on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what steps his Department is taking to support non-online applications for marriage allowance by couples on low incomes.
Mr David Gauke
HM Revenue and Customs is able to support customers who need additional help such as taking applications by phone.
The below Parliamentary question was asked by Caroline Flint on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what proportion of the reduction in household income arising from net tax and benefit reforms in the Summer Budget 2015 will be made up by an increase in household income arising from the new National Living Wage.
Damian Hinds
The Government is supporting household incomes by introducing a new National Living Wage (NLW) for workers aged 25 and above from April 2016. The NLW will be introduced at a level of £7.20, 50p more than the current NMW which means a £900 p.a. increase in earnings next year for a full-time worker. By 2020 the NLW is expected to be over £9 an hour, meaning a full-time worker will earn £4,800 more than today.
By 2020 it is expected that the NLW will directly benefit 2¾m workers; while up to 6m could benefit from ripple effect. A number of large employers have already started paying wages at or above the NLW level, these include Ikea, Lidl, and Morrisons.
The below Parliamentary question was asked by Caroline Flint on 2015-10-21.
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of (a) the reduction in the level at which working tax credit begins to be withdrawn from £6,420 to £3,850 from April 2015 on work incentives for those on low incomes and (b) increasing of the taper rate to 48 per cent on work incentives for those on low incomes.
Damian Hinds
The Government is making changes to Tax Credits which will help put welfare spending on a more sustainable path. The Government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.
Alongside the introduction of the New Living Wage and raising the Personal Allowance, the intended impact of these reforms is to incentivise work, ensure work always pays, and then allow people to keep more of what they earn.