Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 21 October (HL1279), whether HMRC considers that being a Minister constitutes employment for the purpose of determining whether a political gift is an employment-related benefit.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ministers are employees for the purposes of Income Tax and National Insurance Contributions.
The normal rules for employment-related benefits apply to employment-related gifts, as set out in HMRC’s guidance. [1]
HMRC’s Employment Income Manual, section EIM21715 details the exemption for small gifts costing a total of £250 or less per year to provide. [2]
[1] HMRC Internal Employment Income Manual, Updated 4 November 2024, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim20020
[2] HMRC Internal Employment Income Manual, Updated 21 August 2024, https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21715
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the 2 per cent productivity, efficiencies and savings target mentioned in the Autumn Budget is the same as, or additional to, the reduction in administration budgets by 2 per cent announced in Fixing the foundations: public spending audit 2024–25 (CP 1133) in July; and whether they expect that these savings will be sufficient to fund public sector pay settlements in 2025–26, or whether any above-inflation pay rises will require separate and additional improvements in efficiency and productivity.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
In the Autumn Budget, the Chancellor set a 2 per cent productivity, efficiencies, and savings target for all departments for 2025-26. This builds on plans to bear down and reprioritise administrative budgets to help fund 2024-25 pay pressures announced in Fixing the foundations: public spending audit 2024-25. Administration budgets cover the costs of all central government administration other than the costs of direct frontline service provision.
As set out in the Autumn Budget, departmental settlements for 2025-26 will need to fund the next round of public sector pay awards, and departments will set out their affordability evidence to the Pay Review Bodies (PRBs) in the usual way, taking account of expected inflation over the next financial year, forecast by the OBR to be 2.6%. If the PRBs recommend pay awards above the level departments have budgeted for, the government will have to consider the justification – for example where there are especially acute recruitment and retention demands, or where productivity improvements can unlock further funding.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Autumn Budget 2024 (HC 295), whether public corporations will be classified as public sector organisations for the purposes of receiving the allowance to compensate for increases to employer National Insurance contributions; and whether (1) the BBC, and (2) Channel 4, will receive the allowance.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
The Government plans to set out allocations by department as soon as possible.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Autumn Budget 2024 (HC 295), what classification of public sector organisations will receive the allowance of around £5 billion per year to compensate for the increase to employer National Insurance contributions; and how that allowance will be distributed to public bodies.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
The Government plans to set out allocations by department as soon as possible.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Autumn Budget 2024 (HC 295), whether the Chair of the Office for Value for Money was selected by open competition; what is his remuneration; and whether he is a civil servant, a public appointment or a direct ministerial appointment.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The appointment of independent Chair of the Office for Value for Money is a Direct Ministerial Appointment. The remuneration was published in the Terms of Reference on gov.uk.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Autumn Budget 2024 (HC 295), what areas of spending the Office for Value for Money will first assess.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office for Value for Money (OVfM) was launched as part of the Budget. This confirmed that the OVfM will advise the Chancellor and the Chief Secretary to the Treasury on decisions for Phase 2 of the Spending Review. This will include conducting an assessment of where and how to root out waste and inefficiency, undertaking value for money studies in specific high-risk areas of cross-departmental spending, and scrutinising investment proposals to ensure they offer value for money.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by the Exchequer Secretary to the Treasury on 16 October (HC7750), whether the Treasury Permanent Secretary was informed of the pre-election entry in the current Chancellor's Register of Member's Interests and the fact of the associated donation from Mr Corfield, when the Ministerial request was made to appoint Ian Corfield as a civil servant.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. The donation was included in the Chancellor’s Register of Member’s Interests. He has since been appointed, unpaid, as a direct ministerial appointment.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 23 October (HL1495), which specific Treasury Minister requested to officials that Ian Corfield be appointed as a civil servant.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. The donation was included in the Chancellor’s Register of Member’s Interests. He has since been appointed, unpaid, as a direct ministerial appointment.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 19 September (HL976), whether the Treasury holds a Ministerial Code declaration made to the Permanent Secretary when Ian Cofield was appointed as a civil servant; and if so, whether they will place a copy of the declaration in the Library of the House.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. He has since been appointed, unpaid, as a direct ministerial appointment. The donation was included in the Chancellor's Register of Member's Interests.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 19 September (HL976), which specific Minister requested the appointment of Ian Corfield as a civil servant in July.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. He has since been appointed by the Chancellor as an unpaid direct ministerial appointment.