Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 25 March (HL5735), in what way they plan to broaden the National Wealth Fund's legislative remit beyond infrastructure.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will introduce legislation when Parliamentary time allows to broaden the National Wealth Fund’s (NWF) legislative mandate beyond infrastructure to enable it to better support the Government’s growth and clean energy missions.
At that point, and subject to Parliamentary consent, the NWF will focus on enabling investment in capital intensive projects, businesses, or assets. For example, the NWF will have the scope to invest in a broader range of supply chains and critical sectors, such as Artificial Intelligence and quantum, where access to finance gaps exist.
Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to introduce legislation to change the remit of the National Wealth Fund.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government will introduce legislation as soon as parliamentary time allows to broaden the National Wealth Fund’s legislative remit beyond infrastructure.
The Government published the National Wealth Fund’s new Statement of Strategic Priorities on 19 March. It directs the National Wealth Fund to prioritise investment into the clean energy, advanced manufacturing, digital and technologies, and transport sectors. It can already invest in infrastructure projects in these areas.
Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to change the remit of the National Wealth Fund to include defence investment.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government published the National Wealth Fund’s new Statement of Strategic Priorities on 19 March. It directs the National Wealth Fund to consider the role it can play in delivery of the wider Industrial Strategy, including in the defence sector.
The National Wealth Fund will also consider investments in dual-use technologies across its priority sectors of clean energy, digital and technologies, advanced manufacturing and transport, to better support the UK’s defence and security.
The National Wealth Fund retains the flexibility to invest where financing gaps emerge to ensure it can respond swiftly to emerging Government priorities.
Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether spending by the National Wealth Fund will be subject to their fiscal rules; and, if so, which of the fiscal rules will apply.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The UK’s fiscal framework (as set out at the October 2024 Budget) applies to the whole public sector, including the National Wealth Fund (NWF). The NWF is operationally independent, but wholly owned by the Treasury, and therefore part of the public sector and subject to the fiscal framework.
Specifically, the fiscal framework contains two fiscal rules:
i) the stability rule – to move the current budget into balance so that day to-day costs are met by revenues, meaning that the government will only borrow for investment. The NWF’s current expenditure, for example the salaries of NWF staff, and current income, for example the income it receives for loans, are included in this metric.
ii) the investment rule – to reduce debt, defined as public sector net financial liabilities or net financial debt, as a share of the economy. Net financial debt is a broad measure that includes the value of financial assets owned by the government and nets these assets off the liabilities of government captured in net financial debt. NWF’s financial assets, for example it’s loans and equity investments, are included as financial assets under this metric.
Asked by: Baroness Penn (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to remove the application of VAT to tampons at the end of the transition period of the UK’s withdrawal from the EU; and if the application of VAT is to be discontinued, what plans they have to ensure that support to projects currently funded by the Tampon Tax Fund continues.
Answered by Lord Agnew of Oulton
The Government will replace the 5% reduced rate of VAT with a zero rate as soon as it is legally able to do so. It has also committed to continue to fund the Tampon Tax Fund until the UK is legally able to apply the zero rate. As such the Tampon Tax Fund, in its current form, will eventually come to an end. The most recent funding round allows organisations to use up to 10% of their grant money to build their sustainability.