Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made and assessment of the potential merits of completing an updated assessment of the potential savings to the Exchequer from withdrawing the postponed VAT accounting process, taking into account (a) increased deferred VAT payments since implementation, (b) growth in missing trader fraud and VAT loss due to misuse or non-compliance,(c) sectoral analysis of industries contributing most to deferred VAT and (d) behavioural and enforcement trends since PVA’s introduction.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Postponed VAT accounting provides significant support for businesses, helping to manage cash flow and facilitate imports. HMRC undertakes regular operational work to ensure compliance with the rules around postponed VAT accounting.
The VAT gap has reduced from 13.8% in 2005-06 to 6.2% in 2024-25, and has remained broadly stable since 2020-21.
The Government keeps all tax policy under review as part of the policy making process
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment she has made of levels of relative spending per head on reserved matters in (a) Wales and (b) England.
Answered by James Murray - Chief Secretary to the Treasury
Spending on reserved matters is determined by the UK Government according to UK-wide priorities.
The Country and Regional Analysis publication shows estimates for the allocation of identifiable expenditure in the nations and regions of the UK: Country and regional analysis - GOV.UK
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to HM Treasury's press release entitled Government announces support package that backs British pubs, published on 27 January 2026, what her proposed timeline is for the Barnett Formula Consequentials related to this funding to be made available to the Welsh Government, including the total sum.
Answered by James Murray - Chief Secretary to the Treasury
Any Barnett consequentials for the Welsh Government resulting from policy changes will be confirmed at the relevant fiscal event.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent exemptions or carve-outs granted to large United States multinational enterprises under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting on (a) the effectiveness of the global minimum tax, (b) UK tax revenues, and (c) the principle of equal treatment between multinational enterprises operating in the UK.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK, with more than 140 members of the G20/OECD Inclusive Framework have reached agreement on a package of reforms to the Pillar 2 Global Minimum Tax system to address how it should interact with US minimum tax rules.
As set out in my written statement to the House on 7th January, these changes bring stability and clarity for business, as well as protection from retaliatory measures. At the same time, the largest multinationals will continue to pay their fair share of tax through comprehensive systems of global minimum taxation.
This agreement underlines the continued commitment of the UK and others to tackle aggressive tax planning by multinational enterprises and preserve the level playing field.
All multinationals are subject to the 25% Corporation Tax rate on profits they make in the UK, and they remain subject to the UK’s domestic minimum tax rate of 15%.
The changes will be fully costed with the OBR in in the usual way as the UK brings forward legislation in the next Finance Bill.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department made of the potential impact in Wales of increasing the threshold of Agricultural Property and Relief and Businesses Property Relief to £2.5 million.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government announced that the allowance for 100 per cent rate of relief will be increased from £1 million to £2.5 million. This means a couple will now be able to pass on up to £5 million of agricultural or business assets tax-free between them, on top of the existing allowances such as the nil-rate band.
Information from claims is not recorded to enable constituency, regional or national breakdowns of the number of estates expected to be affected. However, compared to Budget 2025, the expected number of estates across the UK claiming agricultural property relief, including those also claiming business property relief, forecast to pay more inheritance tax in 2026-27 halves from 375 to 185. Around 85 per cent of estates across the UK claiming agricultural property relief in 2026-27, including those that also claim for business property relief, are forecast to pay no more inheritance tax on their estates under these changes.
Excluding estates only holding shares designated as ‘not listed’ on the markets of recognised stock exchanges, the reforms are also now expected to result in up to 220 estates across the UK only claiming business property relief paying more inheritance tax in 2026-27. This is a reduction from up to 325 such estates forecast to pay more at Budget 2025. This means just over 80 per cent of such estates making claims are forecast to not pay any more inheritance tax.
A tax information and impact note has been published in the normal way for UK wide changes to the tax system. This is available at www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what are the Zone A rates for retail properties used to calculate the business rates due in (a) Aberystwyth, (b) Tregaron, (c) Aberaeron, (d) Lampeter, (e) Llandysul, (f) Cardigan, (g) St Dogmaels, (h) Crymych, (i) Fishguard, (j) Goodwick and k) Clunderwen.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Retail Zone A rates are specific to individual properties, so there will be a range of Zone A values in each of the locations referred to.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 2 December 2025 to question 95185, what the updated average annual change in the Welsh Government’s capital budget is between 2025-26 and 2029-30; and whether that budget will increase.
Answered by James Murray - Chief Secretary to the Treasury
As a result of decisions at Budget 2025, the Welsh Government will receive an additional £185m CDEL through the operation of the Barnett formula on top of the record settlement provided at Spending Review 2025. This will ensure the Welsh Government are funded above their independently assessed level of need in all years of the Spending Review 2025 period.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of additional people who will paying the (a) basic rate and (b) higher rate of income tax broken down by country, in the context of the extension of the income tax threshold freeze announced in the Autumn Budget 2025
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, will the 10% increase in the size of the Welsh Government's (a) annual capital borrowing limit (b) cumulative capital borrowing (c) overall limit on the size of the Wales Reserve, (d) annual limit for drawing down from the Wales reserve for day-to-day spending and (e) annual limit for drawing down from the Wales reserve for capital spending, as announced in the Autumn Budget 2025, fully restore the real terms value losses that these limits have experienced to due inflation since they were initially fixed in cash terms.
Answered by James Murray - Chief Secretary to the Treasury
The updates to the Welsh Government’s Fiscal Framework announced at Autumn Budget 2025 increase the real value of the Welsh Government’s budget management tools.
The annual uprating of the limits from 2027-28 will maintain the real value of the Welsh Government’s capital borrowing and Wales Reserve.
Asked by: Ben Lake (Plaid Cymru - Ceredigion Preseli)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has she made of the impact of the additional Barnett Formula consequential funding for the Welsh Government announced at the Autumn Budget 2025 on the average annual growth of the Welsh Government’s capital budget between 2025-26 and 2029-30.
Answered by James Murray - Chief Secretary to the Treasury
The additional funding that the Welsh Government will receive as a result of decisions at Autumn Budget 2025 and through the operation of the Barnett Formula increases the average annual growth of the Welsh Government’s capital budget between 2025-26 and 2029-30 compared to the settlements provided at Spending Review 2025.