Asked by: Baroness Foster of Aghadrumsee (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the RetailNI survey results published in February which show that 74 per cent of the businesses surveyed expect to reduce the number of employees and other staff following the increase in employer National Insurance contributions and minimum wage.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Raising the revenue required to fix the public finances and rebuild public services has required difficult decisions on tax, which has meant asking some employers to contribute more.
The Government has protected the smallest employers by increasing the Employment Allowance to £10,500. This means that next year, 865,000 employers will pay no NICs at all and more than half of employers will see no change or will gain overall from this package.
The National Minimum Wage and National Living Wage rates are set on the independent and expert advice of the Low Pay Commission (LPC). The LPC has representatives from business, employee, and academic communities, and through their social partnership model reaches a consensus agreement on the rates. By seeking advice from the LPC when setting the minimum wage rates, the Government is able to ensure that the right balance is struck between the needs of workers, affordability for businesses and the impact on the economy.
Wider business support is devolved in Northern Ireland and is the responsibility of the Northern Ireland Executive. The Northern Ireland Executive’s Spending Review settlement for 2025-26 is the largest in real terms of any settlement since devolution and they receive over 24% more funding per person than equivalent UK Government spending in the rest of the UK, including the 2024 restoration financial package.
Asked by: Baroness Foster of Aghadrumsee (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the RetailNI survey results published in February which show that 86 per cent of the businesses surveyed expect to cancel expansion plans following the increase in employer National Insurance contributions and minimum wage.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Raising the revenue required to fix the public finances and rebuild public services has required difficult decisions on tax, which has meant asking some employers to contribute more.
The Government has protected the smallest employers by increasing the Employment Allowance to £10,500. This means that next year, 865,000 employers will pay no NICs at all and more than half of employers will see no change or will gain overall from this package.
The National Minimum Wage and National Living Wage rates are set on the independent and expert advice of the Low Pay Commission (LPC). The LPC has representatives from business, employee, and academic communities, and through their social partnership model reaches a consensus agreement on the rates. By seeking advice from the LPC when setting the minimum wage rates, the Government is able to ensure that the right balance is struck between the needs of workers, affordability for businesses and the impact on the economy.
Wider business support is devolved in Northern Ireland and is the responsibility of the Northern Ireland Executive. The Northern Ireland Executive’s Spending Review settlement for 2025-26 is the largest in real terms of any settlement since devolution and they receive over 24% more funding per person than equivalent UK Government spending in the rest of the UK, including the 2024 restoration financial package.
Asked by: Baroness Foster of Aghadrumsee (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how it is envisaged that the new National Infrastructure and Service Transformation Authority will work with the devolved Administration in Northern Ireland.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The National Infrastructure and Service Transformation Authority (NISTA) will have a role in relation to non-devolved UK government infrastructure responsibilities in Northern Ireland, Scotland and Wales. NISTA will engage closely with Devolved Administrations and bodies under their jurisdictions as appropriate, particularly on matters where the respective infrastructure policy responsibilities of the UK government and devolved administrations interact.
As announced by the Chief Secretary to the Treasury on 10 October NISTA will combine the functions of the National Infrastructure Commission and Infrastructure and Projects Authority. NISTA will drive effective delivery of infrastructure across the country.
Asked by: Baroness Foster of Aghadrumsee (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to the provisions of section 75 of the Northern Ireland Act 1998 (as amended) around the impact of their decision to impose VAT on school fees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
VAT is a reserved tax and the VAT changes will apply uniformly across the UK. Section 75 of the Northern Ireland Act 1998 is not engaged by this policy.