Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they plan to reduce VAT on reused, refurbished and repaired goods to incentivise circular consumer practices.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Second-hand goods may already benefit from a reduced rate of VAT under the VAT margin scheme. Sellers of eligible goods are not required to charge VAT on the full final sale price of the good, but instead on the difference between the amount paid for the item and the final sale price.
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.
The government has no plans to further reduce VAT on reused, refurbished and repaired goods.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government whether they will extend 'right to repair' legislation (1) further to encourage reuse and repair practices, and (2) to ensure that manufacturers provide appropriate parts and service information.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This Government is committed to transitioning to a circular economy. We have convened a Circular Economy Taskforce, comprising experts from industry, academia, and civil society, to help develop a Circular Economy Strategy for England. The Strategy will map our transition to a circular economy, supported by a series of roadmaps that detail the interventions that the government and others will make on a sector-by-sector basis.
Defra recognises that reuse and repair are fundamental tenets of any circular economy and will consider the evidence for appropriate action right across the economy as we develop the Strategy.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government what steps they plan to take to ensure that commonly discarded goods are instead reused to generate economic, environmental and social value.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This Government is committed to transitioning to a circular economy. We have convened a Circular Economy Taskforce, comprising experts from industry, academia, and civil society, to help develop a Circular Economy Strategy for England. The Strategy will map our transition to a circular economy, supported by a series of roadmaps that detail the interventions that the government and others will make on a sector-by-sector basis.
Defra recognises that reuse and repair are fundamental tenets of any circular economy and will consider the evidence for appropriate action right across the economy as we develop the Strategy.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government what steps they plan to take to encourage the uptake of reuse and repair as drivers of a circular economy.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
This Government is committed to transitioning to a circular economy. We have convened a Circular Economy Taskforce, comprising experts from industry, academia, and civil society, to help develop a Circular Economy Strategy for England. The Strategy will map our transition to a circular economy, supported by a series of roadmaps that detail the interventions that the government and others will make on a sector-by-sector basis.
Defra recognises that reuse and repair are fundamental tenets of any circular economy and will consider the evidence for appropriate action right across the economy as we develop the Strategy.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the compatibility of the EU Carbon Border Adjustment Mechanism with the island of Ireland's Single Electricity Market.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
The UK shares the EU’s concerns about the risk of carbon leakage and recognises the EU’s right to take action to address it. The Government plans to apply the UK Carbon Border Adjustment Mechanism (CBAM) across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses.
The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.
For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The UK have raised with the EU Commission the need for clarity on the practical implementation of the EU CBAM for trade in electricity, given the challenges involved.
The EU Commission website is the most up to date source of information and guidance.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what plans they have to link the UK Emissions Trading Scheme and the EU Emissions Trading Scheme.
Answered by Lord Hunt of Kings Heath - Minister of State (Department for Energy Security and Net Zero)
Under the terms of the Trade and Cooperation Agreement (TCA), the UK Government and EU agreed to give serious consideration to linking our respective carbon pricing schemes and to cooperate on carbon pricing. As part of our reset with the EU the Government continues to explore all options to improve trade and investment.
The Government will work to reset the relationship with our European partners to strengthen ties that improve our trade and investment relationship with the EU and promote climate, energy, and economic security, while recognising that there will be no return to the single market or customs union.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to prepare for the implementation of the EU Carbon Border Adjustment Mechanism on UK/EU trade from January 2026.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
Following its transitional period, the EU Carbon Border Adjustment Mechanism (CBAM) will enter its definitive regime from January 2026. UK officials have been discussing CBAM requirements with the EU and engaging affected businesses to support them in responding to new requirements.
EU CBAM implementation and guidance remains fundamentally a matter for the European Commission and National Competent Authorities. The Commission website is the most up to date source of information for businesses seeking guidance on requirements https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en.
Businesses experiencing EU market access issues in relation to CBAM may wish to seek additional support via the Government’s UK Export Support Service.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact that the EU Carbon Border Adjustment Mechanism will have on surcharges on goods and energy passing (1) between Great Britain and Northern Ireland, and (2) between Northern Ireland and the Republic of Ireland.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government plans to apply the UK CBAM across the whole UK, including in NI. The UK will continue to work with international partners, including the EU, to ensure our approach is implemented in a way that works for businesses. The EU CBAM could only apply in Northern Ireland with the agreement of the UK and in line with the democratic safeguards of the Windsor Framework.
For goods moving from Northern Ireland into the EU, guidance is a matter for the European Commission and EU Member States. The Commission website is the most up to date source of information and guidance.
The EU Commission have also published their own impact assessment of the EU CBAM which is available online.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they still intend to implement the UK Carbon Border Adjustment Mechanism.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Yes, the government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027.
Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government, further to their policy paper 30by30 on land in England: confirmed criteria and next steps, published on 29 October, what role they intend Local Nature Recovery Strategies to have in achieving their '30 by 30’ targets.
Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Delivering the UK’s 30by30 target on land in England will require a strategic approach, to address the scale of action needed, and ensure a diverse and well-connected network of 30by30 areas. Over the coming months, we will be developing a delivery strategy for 30by30, to ensure we make good on this important commitment. This will confirm the key levers that will help us to achieve this target and set out the pathway to 2030. We hope to finalise and publish this strategy this year.
Local Nature Recovery Strategies (LNRSs) are currently being prepared across England. Each LNRS will agree priorities and propose practical actions in the best locations for nature recovery and wider environmental benefits, such as water quality, flood risk management and climate mitigation. Where appropriate action is then taken, some of these areas could go on to contribute towards 30by30 where landowners/land managers are willing.