Written Statements

Tuesday 16th January 2024 Written Statements

Tuesday 16 January 2024

UK Export Finance Support for Ukraine

Tuesday 16th January 2024 Written Statements

[The Minister for Industry and Economic Security (Ms Nusrat Ghani)]

Nearly two years since Russia brutally invaded the sovereign territory of Ukraine, the UK continues to stand resolutely with the Ukrainian people against Russian aggression.

The UK is providing significant economic, humanitarian and defensive assistance to Ukraine, including through export credits and insurance from UK Export Finance (UKEF). As part of the UK’s support for the repair and defence of Ukraine’s critical infrastructure, UKEF has already agreed to provide financing for the reconstruction of six bridges in Kyiv and support for Urenco’s contract to supply fuel to Ukraine’s largest power producer, Energoatom, and provided payment risk insurance for UK exporters trading with Ukraine.

Government Ministers have decided it remains in the national interest for UKEF to stay on cover for Ukraine. This means that UKEF’s £3.5 billion of financial capacity for UK exporters and their buyers in Ukraine is still available.

The heightened risk of supporting Ukraine during a war falls outside UKEF’s minimum risk standards as set by HM Treasury and is not a typical activity undertaken by UKEF. Therefore, ministers must instruct UKEF to operate.

Depending on the volume and value of the transactions supported by UKEF, the Government could incur up to £3.5 billion of contingent liabilities over time. UKEF will assess transactions on a case-by-case basis in accordance with normal policy and practice, while also obtaining written consent from Ministers and HMT before providing support for each transaction.

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Tax Simplification Update

Tuesday 16th January 2024 Written Statements

[The Financial Secretary to the Treasury (Nigel Huddleston)]

The Government want the tax system to be simple and fair and to support growth, and have issued a clear mandate to officials in HM Treasury and HMRC to put tax simplification at the heart of policy making.

At autumn statement 2023, the Government published their four main objectives on tax simplification:

Tax rules should have a clear consistent rationale and be easy to understand.

The burden of compliance and administration should be proportionate for taxpayers and HMRC and it should be easy for taxpayers to get their tax right.

Taxpayers should be able to understand their obligations and options, particularly at key life-cycle points, such as when they do something for the first time or infrequently.

Tax policy should not unnecessarily distort the decisions of taxpayers and result in poorly informed choices.

The Government also announced a comprehensive set of changes to make it easier for businesses and individuals to interact with the tax system, reducing the time and money spent on tax administration and allowing them to focus on their businesses and daily lives.

Today, the Government are setting out further measures to simplify the experience of taxpayers, using the efficiencies of digital services to drive public sector productivity.

Enhancing the non-reimbursed expenses service

Each year, HMRC receives 1.1 million claims for tax relief from employees on their expenses. These claims are submitted through existing online services, or via digital or paper forms, resulting in some claims being manually processed. To simplify the process for many employees claiming tax relief on their expenses, and for HMRC to automatically process claims, the Government are designing a new, online service for employees to claim tax relief on all of their expenses in one place, meaning that employees will get relief sooner. HMRC will provide further details later this year.

Mandating the payrolling of benefits in kind

The Government will mandate the reporting and paying of income tax and class 1A national insurance contributions on benefits in kind via payroll software from April 2026, building on the progress already made on the Government’s ambition to fully digitalise the reporting of benefits in kind. Mandation will simplify the tax affairs of 3 million people and reduce the need for them to contact HMRC.

This measure will reduce administrative burdens for thousands of employers and HMRC by simplifying and digitising the process of reporting and paying tax on all employment benefits. It will remove the need for 4 million end-of-year returns to be submitted to HMRC. HMRC will engage with stakeholders to discuss our proposals to inform design and delivery decisions, and draft legislation will be published later in the year as part of the usual tax legislation process. HMRC will also work with industry experts to produce guidance, which will be made available in advance of 2026. Further information will be published via usual communication routes, such as through employer bulletins.

Amending the parents’ NI credit (child benefit)

As announced in April 2023, the Government will legislate to introduce a route for people to apply for national insurance credits for parents and carers for tax years where they have not claimed child benefit, to ensure that people do not miss out on their state pension entitlement. The credit will add qualifying years of national insurance where eligible, which will support future state pension eligibility. Individuals will be able to claim this credit from April 2026. The eligibility for the credit will be closely based on child benefit eligibility criteria. Transitional arrangements will ensure that those affected since 2013 are still able to claim. Going forward, applications will be available for six years following the relevant tax year. The Government will bring forward secondary legislation as soon as possible.

Today, the Government are also exploring further opportunities to make the tax system simpler and fairer.

Tax simplification for alternative finance

The Government are today publishing a consultation proposing changes to the capital gains tax rules that apply to alternative finance arrangements. The proposed changes seek to amend those rules so that where property is used as collateral for the purposes of raising finance, the CGT outcome is the same whether alternative finance or conventional finance is used. The consultation also asks whether there are any implications for capital allowances. The consultation will be open to responses for 12 weeks, closing on 9 April 2024.

Reform of the UK law in relation to transfer pricing, permanent establishment and diverted profits tax

The Government are today publishing a summary of responses from a consultation undertaken last summer, which proposed reforms to transfer pricing, permanent establishment and diverted profits tax legislation. The aim is to develop simpler, shorter legislation that is easier to understand and to administer and provides greater certainty for both HMRC and taxpayers. The Government will continue to engage with stakeholders on the proposed approach set out in the summary of responses with a view to publishing draft legislation for consultation later in 2024.

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Road Fuels Consultation and Impact Assessment

Tuesday 16th January 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

I would like to update the House on the Government’s road fuels consultation and impact assessment that will be published today and closes on 12 March 2024. The Government are committed to reducing bills for families, including to ensure drivers get a fair deal at the pump. The proposals in the consultation will help with this by facilitating a competitive road fuels retail market, increasing price transparency and protecting consumer interests.

The UK is a nation of drivers. There are 41.2 million vehicles on the road in the UK today. For many people, vehicles are a critical part of everyday life, connecting countless communities and businesses up and down the country—whether that is getting to work or taking children to school, or for those living in rural areas.

The Government have already taken action to support drivers. At spring Budget 2023, the Government announced their continued support for households and businesses by maintaining the rates of fuel duty at the levels set on 23 March 2022 for an additional 12 months, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. That represents an overall saving for drivers of around £10 billion over the two years from the 5p cut being introduced, and around £200 for the average car driver. From 2011-2022, the average driver made a cumulative saving of £1,900 from the freezing of fuel duty rates, compared with what would have been paid under the pre-2010 escalator.

When fuel prices are high the impacts are felt by everyone. That is why the Government were very concerned with the findings of the Competition and Markets Authority’s road fuel market study published in July 2023. The CMA found that competition between fuel retailers at a national level had weakened since 2019, due to a decision by the historic price leaders to take a less aggressive approach to pricing by significantly increasing their internal margins for fuel. This was coupled with other retailers maintaining largely passive pricing policies rather than trying to win market share.

As a result, consumers were paying generally higher prices than would otherwise have been the case. Among the four largest supermarkets, the higher margins resulted in a combined additional cost of £900 million for consumers in 2022 alone.

The study also found that long-standing patterns of variation in pricing between different local areas remain across the UK, meaning that consumers in some areas can pay significantly more for fuel than those in others. Drivers are also paying significantly more to fill up at a motorway service station than they would elsewhere. In 2022, motorway retailers were on average charging around 20p per litre more for petrol and 15p per litre more for diesel than retailers elsewhere.

We are determined to ensure that consumers get a fair deal at the pump. It is crucial that we strengthen competition so that the market works for consumers. The Government have acted swiftly to address this and committed to introduce a statutory open data scheme and an ongoing road fuels price monitoring function. These measures will empower consumers to find the best price for fuel, igniting competition among fuel retailers for their business.

The open data scheme will increase price transparency for consumers, allowing them to compare prices more easily. It will grow our digital economy, creating opportunities for third-party app and website developers to use the data in innovative ways. This will end the need to drive around to find cheaper fuel, instead enabling live price data to be displayed on in-car displays, apps and price comparison sites.

The monitoring function will provide the Government with an assessment of competition in the market, acting as a deterrent against individual businesses taking actions that may weaken competition and holding industry to account. The Government recently announced that the CMA will undertake the monitoring function and amended the Digital Markets, Competition and Consumers Bill to provide the CMA with the necessary information-gathering powers.

We want to hear from everyone to ensure that the two recommendations work effectively to facilitate a competitive market, deliver on price transparency and protect consumer interests. We will closely assess all the responses, which will inform the design of the open data scheme and some aspects of the monitoring function that are not covered in the amended Digital Markets, Competition and Consumers Bill. The measures will improve competition for the benefit of consumers and get a better deal for drivers across the United Kingdom.

I am placing copies of the consultation and the impact assessment in the Libraries of the House.

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Review of Wilton Park

Tuesday 16th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (David Rutley)]

I am announcing today the conclusion of the review of Wilton Park, an executive agency of the Foreign, Commonwealth and Development Office.

As I noted in my statement in June on the commencement of the review, the public bodies review programme delivers against the commitments made in the declaration on government reform to increase both the effectiveness of public bodies and departmental sponsorship, making government work better in service of the public. This review of Wilton Park follows the tailored review of Wilton Park in 2018.

Wilton Park is a key strategic asset in the FCDO’s portfolio. The review found that Wilton Park continues to make valued contributions as a convenor and facilitator of international policy discussions, and noted that Wilton Park’s most important feature is its ability to convene and facilitate extended, in-person conversations among diverse groups of policymakers at mid-senior level to support international policy objectives.

The review comes at an important time for Wilton Park, which has successfully steered through the challenges of the covid-19 period and is considering options for its future.

We are very grateful to the lead reviewer, Lorraine Wilkinson, and her team, for their hard work on behalf of Wilton Park and the Government. Their recommendations will give vital structure to further sharpen the strategic alignment of Wilton Park with the objectives of His Majesty’s Government, while safeguarding its independence and ensuring that Wilton Park continues to provide value for money for the taxpayer.

The lead reviewer’s overview and the review recommendations, along with the Government’s statement of how it intends to take these recommendations forward, has been published on www.gov.uk.

A copy of the review and the Government’s response will be placed in the Libraries of both Houses.

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UK Delegation to the Parliamentary Assembly of the Council of Europe

Tuesday 16th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)]

The right hon. Member for Alyn and Deeside (Mark Tami) has been appointed as a substitute member of the United Kingdom delegation to the Parliamentary Assembly of the Council of Europe.

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Personal Injury Discount Rate: Call for Evidence

Tuesday 16th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mike Freer)]

My hon. Friend the Parliamentary Under-Secretary of State for Justice (Lord Bellamy KC) has made the following statement:

I announce today the publication of “Setting the Personal Injury Discount Rate: A Call for Evidence”. This call for evidence is intended to obtain evidence to inform the second review of the personal injury discount rate (PIDR) under the Civil Liability Act 2018. The call will remain open for 12 weeks.

The PIDR is important in ensuring that claimants who suffer serious, life-changing personal injuries receive full damages, including for their future financial needs. It is the percentage figure used to help calculate how much a compensator—usually an insurer or body such as the NHS—pays to a claimant, in the form of a lump sum. It is assumed that claimants will invest this lump sum and accrue a return on that investment and the PIDR represents what the real rate of return on this investment is expected to be.

The Civil Liability Act 2018 introduced changes to the way the PIDR is reviewed and set, and this is the second review under that methodology. It is also the first where the Lord Chancellor will consult with the expert panel he has appointed as well as His Majesty’s Treasury.

The responses to this call for evidence will inform the work of the expert panel and the Lord Chancellor’s considerations in reviewing the PIDR later this year. The Lord Chancellor will formally consult the expert panel in due course and inform both Houses, in line with the timetables set out in part 2 of the Civil Liability Act 2018.

Copies of the call for evidence can be found here: https://www.gov.uk/government/calls-for-evidence/setting-the-personal-injury-discount-rate.

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Hague Convention of 2019: Foreign Judgements in Civil and Commercial Matters

Tuesday 16th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mike Freer)]

My hon. Friend the Under-Secretary of State for Justice (Lord Bellamy KC) has made the following statement:

On Friday 12 January, the UK signed the Hague Convention of 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (hereafter: “Hague 2019”; “the convention”). The signing of Hague 2019 follows from the UK Government’s decision, which was announced on 23 November 2023, to join the convention as soon as possible, following a public consultation.

Once in force, the convention will provide greater certainty and predictability for citizens and businesses dealing in cross-border civil and commercial disputes, about when judgments from courts in the UK will be recognised and enforced in the courts of other parties to the convention, and when judgments from those states can be recognised and enforced in the UK. By facilitating cross-border recognition and enforcement of judgments, the convention will provide a welcome uniform set of rules for a wide range of judgments between the UK and other contracting parties; increase confidence in the UK legal system; support international trade, investment and cross-border mobility; enhance access to justice and reduce the costs for litigants of determining whether a judgment obtained from one court is enforceable in another contracting state. And, by joining the convention the UK is indicating its position as a global leader in private international law—an area in which the UK undoubtedly has significant expertise.

For these reasons, the UK Government believe that joining the convention will be highly beneficial for the UK. Therefore, the UK Government have signed the convention as a signal of the UK’s commitment to co-operation with our international partners and will now work to ratify the convention. Ratification will occur once all the necessary implementing legislation and rules have been put in place to facilitate the convention’s smooth operation. As per the rules set out in the convention, Hague 2019 will come into force 12 months after the UK has deposited its instrument of ratification. As part of the procedural stages that precede any ratification, the treaty will be laid before Parliament for scrutiny in the coming months under the terms of the Constitutional Reform and Governance Act 2010 (“CRaG”).

Concluded under the auspices of the Hague conference on private international law, the convention has a potentially global reach. There are currently 29 contracting parties (the 27 EU member states, the EU and Ukraine) to Hague 2019, for whom the convention entered into force on 1 September 2023. Uruguay has also ratified the convention, with it set to enter into force on 1 October 2024. There are also six signatories (Israel, Costa Rica, Montenegro, North Macedonia, the Russian Federation, the USA) who have not yet ratified.

The Hague 2019 convention was signed on behalf of the jurisdictions of Scotland, Northern Ireland, and England and Wales. While the decision to join an international convention is a reserved matter, the implementation of the convention is devolved to Scotland and Northern Ireland as it relates to private international law, a devolved matter. My officials have worked closely with colleagues in the devolved Governments and will continue to do so throughout the implementation process.

The UK is able to make declarations under the convention under articles 14, 16, 18, 19 and 25 at the point of signature, ratification, or any time thereafter to clarify or limit the application of the convention in the UK. Such declarations may be subsequently modified or withdrawn at any time.

The UK Government will keep questions of declarations under review as we proceed to signature and implementation and in the future as the convention comes into force between the UK and the current and future contracting parties.

A copy of the UK Government response to the Hague 2019 consultation was placed in the Libraries of both Houses at the time of publication and is also available online.<sup>1

1</sup> https://www.gov.uk/government/consultations/hague-convention-of-2-july-2019-on-the-recognition-and-enforcement-of-foreign-judgments-in-civil-or-commercial-matters-hague-2019.

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Tribunal Capacity

Tuesday 16th January 2024 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Alex Chalk)]

The Illegal Migration Act 2023, once commenced, will provide for accelerated claims and appeal timescales for individuals subject to the “duty to remove” provisions of the Act when making suspensive claims relating to the narrow grounds of serious harm and removals conditions. The Act provides that these appeals are to be heard in the upper tribunal—Immigration and Asylum Chamber—rather than the first-tier tribunal.

The Act sets out that, once issued with a third-country removal notice, individuals will have eight days to make a claim to the Secretary of State for the Home Department. Having received a claim, the Secretary of State will have four days to consider the claim and decide whether it should succeed, and if not, whether to certify it as clearly unfounded.

Where a claim is certified as unfounded, there is no automatic right of appeal. The individual can be removed unless they apply to the Upper Tribunal for permission to appeal within seven working days from being given notice of the certification. These applications will normally be dealt with on the papers, noting that this is a judicial decision. The upper tribunal must decide whether to allow the appeal to proceed and notify the parties within seven working days from when the application is made—there is no right of appeal against the tribunal’s decision. The upper tribunal may not extend either of these timeframes, unless it is satisfied that it is the only way to secure that justice is done in a particular case.

Where the Secretary of State for the Home Department rejects the initial claim but does not certify it as clearly unfounded, or where the upper tribunal gives permission to appeal, the individual has seven working days from when they are notified of the Secretary of State’s decision, or from when they are given permission to appeal, to give notice of appeal to the upper tribunal. The upper tribunal must make their decision and give notice of that decision to the parties within 23 working days from the day the appeal was lodged. Again, the upper tribunal may extend either of these timeframes only if it is satisfied that it is the only way to secure that justice is done in a particular case.

The Ministry of Justice has been working to increase capacity in the justice system in preparation for the commencement of the Act. Additional hearing rooms have been prepared, making a total of 25 hearing rooms available within the existing Immigration and Asylum Chamber estate in London. These rooms are set up with remote hearing technology, allowing for either in-person or remote hearings in order to maximise flexibility. Over 100 additional staff have been recruited to support the upper tribunal’s work and are currently undertaking training ready for the commencement of the Act.

The Illegal Migration Act provides for first-tier tribunal judges to be deployed to sit in the upper tribunal to hear Illegal Migration Act appeals. The judiciary has identified relevant judges, which could provide over 5,000 additional sitting days. The decision on whether to deploy additional judges temporarily to the upper tribunal, including when they sit and the courtrooms they use, is for the independent judiciary and will be taken by the relevant leadership judges at the time and in the interests of justice. In addition, I have asked the Judicial Appointments Commission to recruit more judges to the first-tier tribunal and the upper tribunal. The recruitment will conclude in the next few months and new judges will be appointed, trained and start sitting from this summer.

We are confident that, with the additional courtroom and judicial capacity detailed above, in line with projected levels agreed with the Home Office, the vast majority of Illegal Migration Act appeal work will be dealt with by the courts in an expedited manner.

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New Overseas Electors Franchise

Tuesday 16th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

On 27 May 2021, the former Minister for the Constitution and Devolution, my right hon. Friend the Member for Norwich North (Chloe Smith), updated the House on the Government’s plans to bring forward measures in the Elections Bill—now the Elections Act 2022—to remove the arbitrary 15-year limit on the voting rights of British citizens living overseas.

The Government committed in their 2019 manifesto to enable more British citizens living overseas and with a demonstrable connection to the UK to vote in UK parliamentary elections—and to enable them to do so more easily. We have delivered on that promise.

Votes for life, delivered

I am pleased to be able to inform the House that, as of today, the 15-year limit on overseas electors’ voting rights is abolished. British citizens living abroad who have been previously registered or previously resident in the United Kingdom can apply to register to vote in UK parliamentary elections.

British expatriates continue to have strong links with the United Kingdom. Decisions on foreign policy, Brexit and trade will directly affect their lives. Now we have left the EU, it is more important than ever to strengthen our ties with the British expatriate community. We want all British citizens abroad to remain part of our democracy, and they should continue to have their say in UK parliamentary elections.

Improving accessibility, enhancing security

The registration period for overseas electors has been extended from one year to up to three, making it easier for an elector to maintain their registration for longer.



The majority of electors can now also apply for an absent vote—postal or proxy— online. This will be particularly useful to British citizens living overseas, as it will speed up the process for obtaining an absent vote.

In Great Britain, overseas electors’ absent vote arrangements will—from now—also be tied to the registration renewal process, meaning that an overseas elector will be able to renew their registration and their absent vote arrangement at the same time. This makes it easier for an elector to maintain their registration for longer, with an absent vote arrangement in place ahead of elections. This means that, when a UK parliamentary election is called, the elector’s absent vote can be issued without delay.

As now, the integrity of the registration process will be maintained, with all overseas applicants subject to identity checks when applying to register to vote, or when applying for an absent vote.

In the first instance, this will be matched against Government-held data, with documentary evidence provided as a new step, in alignment with domestic registration. All applicants will also have their connection to a qualifying address verified by electoral registration officers.

In addition, postal vote arrangements will be restricted to a maximum of three years. For proxy arrangements, a fresh signature will be required for identity verification purposes every three years. This is all part of the concerted effort by Government to improve the integrity of our elections.

A more inclusive and representative democracy

Together, these changes will help to ensure that more British citizens resident overseas are able to participate in elections, and maintain a secure and robust electoral system.

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