Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government on what conditions they would agree to the Northern Ireland Executive introducing a different rate of corporation tax to the rest of the UK.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Stormont House Agreement between the UK Government and the Northern Ireland Executive agreed, in principle, for the power to set the rate of Corporation Tax in Northern Ireland on certain trading profits to be devolved to the Northern Ireland Assembly.
It was agreed that the Executive would need to formally request the power to change the Corporation Tax rate in Northern Ireland and to demonstrate that its finances were on a sustainable footing, and that the Executive’s block grant would need to be adjusted to reflect the Corporation Tax revenues foregone if the devolved power were exercised.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether UK-based insurers are insuring oil or gas tankers that transport Russian fossil fuel products.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
UK based insurers are permitted to provide insurance services to vessels transporting Russian origin oil or oil products if those products are shipped below the relevant price cap and the insurers comply with the conditions of the Oil Price Cap general licence. More information on the Maritime Services Ban and Oil Price Cap general licence can be found here: https://www.gov.uk/government/publications/russian-oil-services-ban.
In January 2023 the UK prohibited all imports of Russian liquefied natural gas into the UK and provision of services which facilitate that import such as insurance. UK insurers are permitted to provide coverage to vessels transporting Russian gas between Russia and third countries. HMG is aware of UK based insurers who are currently involved in this trade.
These measures are restricting Russia’s funding for Putin’s illegal war in Ukraine; sanctions have deprived Russia of $450 billion in revenue, approximately four years of current Russian military spending.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the introduction of a cap of £25,000 on the amount of VAT that can be claimed back under the Listed Places of Worship Grant Scheme.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises the importance of supporting churches and other listed places of worship. That is why the decision was made to extend the Listed Places of Worship Grant Scheme until 31 March 2026, with a budget of £23m.
Against a tough fiscal picture, the difficult decision was taken by the Department for Culture, Media and Sport (DCMS) to implement an annual limit of £25,000 per individual place of worship for the coming year. The changes to the scheme were necessary given the significant pressures on other parts of the heritage and cultural sectors.
Based on DCMS’s analysis of previous data, 94% of applications will be unaffected by the change, as most claims are under £5,000.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much annually managed expenditure the Treasury made available to the Northern Ireland Executive in each of the past three financial years for the purpose of funding the non-domestic renewable heating initiative; and how much was actually drawn down in each of those years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Programmes are funded by the UK Government in Annually Managed Expenditure (AME) if they are demand-led and volatile in a way that could not adequately be controlled by the devolved governments. Where a devolved government offers broadly similar terms for an AME programme, the UK Government will fund the cost of this programme. Where a devolved government wishes to offer more generous terms for an AME programme, then the excess over that implied by adopting broadly similar terms for that programme (and therefore broadly comparable costs) must be met by the devolved government.
The Northern Ireland Executive received the following AME funding for the non-domestic renewable heating initiative; £27.97m in 2023-24, £33.47m in 2024-25, and £33.47m in 2025-26.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what financial contributions they will make to the EU as a result of the UK–EU reset agreement, and when those contributions will commence.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
There will be implementation costs associated with the UK-EU reset agreement, which will be confirmed in due course once we have negotiated the details of the agreement. This will include proportionate contributions in specific and limited areas, such as where access to specific IT systems will help to remove trade barriers for UK firms or manage biosecurity risks. The UK will also negotiate fair financial contributions to the Erasmus+ programme which will reflect the benefits of participation. We will not be making general contributions to the EU budget.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the negative impact of charging VAT for renovations of buildings on brownfield sites compared with greenfield sites where building of homes is zero rated for VAT.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
To stimulate the construction of new homes, the Government maintains a zero rate of VAT on new-build residential buildings. Additionally, residential renovations are subject to a reduced rate of VAT of five per cent if they meet certain conditions. These include conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two or more years.
VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Introducing further construction-related VAT reliefs would come at a significant cost to the Exchequer. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances. In July 2024, the Government published an audit of public spending, which set out £22 billion of in-year pressures. These pressures were not limited to 2024/25, with the vast majority recurring in future years.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to promote import substitution to assist with the balance of payment deficit.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The UK has an open and trade intensive economy.
The government is delivering its growth mission by prioritising stability, investment and reform to drive prosperity across the UK.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made, if any, of the degree of accuracy of the data from the Office for National Statistics on economic inactivity.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Recent data from the Labour Force Survey (LFS) is subject to significant uncertainty. LFS response rates fell from 49.3% in Q3 2013 [1] to 12.7% in Q3 2023 [2], which have led to a number of concerns about the quality of data based on the LFS.
As set out in its November 2024 Labour Market Overview [3], despite coherence challenges between LFS estimates and other data sources, the LFS continues to be the sole source of data for unemployment, economic inactivity and the self-employed. There are also a range of breakdowns that are only possible from LFS data.
The ONS is undertaking work to address these quality issues through improvements to its data collection and methodology [4]. The ONS is also continuing to develop the Transformed Labour Force Survey (TLFS) as the long-term solution for collecting labour market data [5].
While planned improvements are underway, LFS estimates remain volatile and will continue to be badged as ‘official statistics in development’ until further review. The ONS advise caution when interpreting changes in headline LFS rates and recommend using them as part of its suite of labour market indicators [6].
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to review the level of state contributions to public sector pensions.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The rate of employer contributions paid to the main unfunded public service pension schemes is assessed as part of scheme valuations every four years. The most recent employer contribution rates were implemented in April 2024.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the long-term (1) cost, and (2) sustainability, of public sector pensions; and what assessment they have made of how such pensions compare to those paid in the private sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Independent Public Service Pension Commission led by Lord Hutton recommended in March 2011 that projected public service pension benefit payments as a percentage of estimated future GDP is the most relevant measure of their future affordability. This is because most public service pensions are financed through taxation, which is closely related to GDP.
The Office for Budget Responsibility forecast in 2022 that spending on public service pensions will fall from 2 per cent of GDP at present to 1.7 per cent by 2071-72. An updated forecast is expected to be published in the near future.
Remuneration in the main public sector workforces tends to be weighted towards pension relative to pay compared to packages typically available in the private sector. The total remuneration package needs to be considered when making any comparisons. The recommendations by the independent Pay Review Bodies for the main public service workforces take account of the total reward for each workforce, including the relevant pension scheme.