Asked by: Lord Teverson (Liberal Democrat - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what the relationship will be between the biodiversity net gain rules and the future Nature Restoration Fund.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
Last year the Environment Act introduced a new mandatory Biodiversity Net Gain (BNG) requirement of 10% for new developments, subject to some exceptions.
The Nature Restoration Fund will be in addition to BNG and will run concurrently, focusing on enabling development in areas where that has stalled due to specific environmental obligations relating to impacts on protected sites or species in those areas
We will ensure that developers receive a user-friendly experience and that BNG credit and the Nature Restoration Fund revenue is deployed in a joined-up manner to maximise environmental outcomes.
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.