Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the fiscal impact of the US-UK trade deal.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
On 8 May 2025, the Prime Minister and the President concluded a landmark economic deal between the United Kingdom and the United States. The deal was defined in the General Terms for the Economic Prosperity Deal (EPD). On 16 June, the Prime Minister and the President agreed further progress towards that goal and the initial implementation of commitments.
The Office for Budget Responsibility is the government's official forecaster responsible for assessing the UK economic and fiscal outlook. The OBR will publish its next official forecast in the Autumn.
Asked by: Grahame Morris (Labour - Easington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the proposed changes to Agricultural Property Relief and Business Property Relief on levels of food production.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
The reforms are expected to result in up to 520 estates claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government will invest more than £2.7 billion a year in sustainable farming and nature recovery in England from 2026-27 until 2028-29. This will boost productivity and protect the natural ecosystems underpinning food production and broader economic activity, which will support food and economic security.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing the rate of VAT for the hospitality sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2025/26, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
HMRC estimates that the cost of a 12.5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £6.5 billion this financial year, or £8 billion if it were to include alcoholic beverages.
Asked by: Louie French (Conservative - Old Bexley and Sidcup)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of Gift Aid claims have been rejected in each of the last five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The average processing times for Gift Aid claims over the last five tax years are below:
Tax Year | Average Working Days to Pay | ||
06/04/2024 | to | 05/04/2025 | 3.16 |
06/04/2023 | to | 05/04/2024 | 3.24 |
06/04/2022 | to | 05/04/2023 | 2.84 |
06/04/2021 | to | 05/04/2022 | 3.49 |
06/04/2020 | to | 05/04/2021 | 4.08 |
HMRC does not hold information centrally on what proportion of Gift Aid claims have been rejected in each of the last five years.
Asked by: Louie French (Conservative - Old Bexley and Sidcup)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average processing time was for Gift Aid claims in each of the last five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The average processing times for Gift Aid claims over the last five tax years are below:
Tax Year | Average Working Days to Pay | ||
06/04/2024 | to | 05/04/2025 | 3.16 |
06/04/2023 | to | 05/04/2024 | 3.24 |
06/04/2022 | to | 05/04/2023 | 2.84 |
06/04/2021 | to | 05/04/2022 | 3.49 |
06/04/2020 | to | 05/04/2021 | 4.08 |
HMRC does not hold information centrally on what proportion of Gift Aid claims have been rejected in each of the last five years.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she if taking to help ensure that funding from the National Wealth Fund benefits t(a) nations and (b) regions across the UK.
Answered by James Murray - Exchequer Secretary (HM Treasury)
This government has set a strong mandate for the National Wealth Fund to deliver on priorities across all the regions and nations of the UK.
The National Wealth Fund also works collaboratively with the Scottish National Investment Bank, Development Bank of Wales, and the Northern Ireland Executive. It has dedicated directors in each of the UK’s four nations to support the NWF’s view of markets across the country.
Asked by: Mel Stride (Conservative - Central Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the G7 agreement on global minimum tax on additional revenue to the public purse in each of the next five financial years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Chancellor, alongside her G7 counterparts, has reached an understanding on a proposed path forward for the global minimum tax, Pillar 2 of the G20/OECD Inclusive Framework project on Base Erosion and Profit Shifting (BEPS).The G7 published a statement last week that set out our commitment to the core objectives of Pillar 2: tackling multinational tax avoidance and promoting a stable global tax environment that supports fair competition.
Recent discussions have taken into account concerns raised by the US Treasury regarding the interaction of the Pillar 2 rules with the US minimum tax system, and have focused on developing a side-by-side approach that maintains a level playing field.
Importantly, this agreement includes the removal of the retaliatory tax provision (Section 899) in the US’s legislative proposals, which would have imposed a significant additional tax burden on British businesses.
The understanding reached by the G7, and the principles underpinning it, will now be developed in detail and need to be agreed within the wider OECD/G20 Inclusive Framework, which comprises over 140 countries and jurisdictions.
Any changes to UK policy resulting from the final, negotiated solution, will be fully costed by the Office for Budget Responsibility (OBR).
Asked by: Harriett Baldwin (Conservative - West Worcestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the UK-US trade deal on financial services.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The US is our single largest financial services trading partner and relations are strong. As hosts of the top two global financial hubs, both nations benefit from deep, global financial markets and strong trade ties.
The General Terms for the UK-US Economic Prosperity Deal agreed on 8 May confirm that we will negotiate digital trade provisions that include financial services. The General Terms can be found here. However these General Terms are only the first step in our negotiations on a wider economic deal.
The Government will provide further updates as appropriate.
Asked by: Josh Babarinde (Liberal Democrat - Eastbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.65 of her Department's document entitled Spring Statement 2025, published on 26 March 2025, when she will publish the reforms to Individual Savings Accounts.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government is looking at options for reforms to ISAs that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.
The Government keeps all aspects of tax and savings policy under review.
Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how many reclaims for statutory paternity pay there have been in each of the past five years, broken down by size of business.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A breakdown of total reclaims for the financial years 2019–20 to 2023–24 is available below. However, data for 2024–25 has not yet been analysed as the tax year has only recently ended.
Further breakdowns of information by size of business are not currently available from published statistics, and collating and verifying the relevant data solely for the purpose of answering this question would incur disproportionate cost.
Date | Sum Recoveries | Count Recoveries |
19/20 | £50,300,000 | 55,100 |
20/21 | £43,800,000 | 44,200 |
21/22 | £52,400,000 | 53,600 |
22/23 | £52,600,000 | 54,600 |
23/24 | £61,500,000 | 56,200 |
Notes:
1) Data collected using HMRC Real Time Information (RTI) and extracted in December 2024. RTI is subject to revision or updates.
2) Sum recoveries rounded to nearest £100,000.
3) Count of recoveries rounded to nearest 100.