Nicky Morgan, chair of the Treasury committee has written to Mel Stride, financial secretary to the Treasury, asking for an update on previous correspondence on making tax policy improvements started by her predecessor, Andrew Tyrie.

Morgan argues that consultation at the policy development stage of a Finance Bill is not universal, and points out it has been particularly limited in 2017 in view of the change to the Budget timetable and the impact of the general election. She says consultation before the bill is introduced to Parliament has the potential to be constrained by lack of up to date costings.

MPs want to see all the information about consultations on a measure were in one place, alongside an indication of the Budget(s) in which it was announced and the Finance Bill(s) in which it would be legislated.

Morgan suggests a regularly updated page on Gov.UK would mean stakeholders could be confident that they are seeing the latest position for all consultations on tax measures. 

Finally, Morgan raises queries about the timeliness of tax impact and information notes (TINNs) under the new Budget timetable. The Office for Budget Responsibility is due to sign off costings in November (Budget) and March (Spring statement).

Morgan argues this change means that TIINs which are published with draft clauses (in the summer) will be less useful than TIINs that were published in the autumn under the old timetable, since the latest costings will be four months old and they will not have been able to take account of any refinement of the policy following the post-Budget consultation period (from January to April).

The letter concludes with a request for the Treasury’s views and an update on discussion before the Budget, which is on 22 November.

Correspondence from the chair of the Treasury select committee to the Treasury, relating to scrutiny of the Finance Bill, is here.

Report by Pat Sweet