Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will instruct the Financial Conduct Authority to investigate pricing in the insurance market.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Insurers make commercial decisions about the price and terms of cover they offer based on their assessment of the relevant risks.
However, the Government is determined that insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive).
The FCA monitors firms to ensure they provide products that offer fair value and has robust powers to act against firms that fail to comply with its rules.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of classifying thermal storage heaters as energy saving materials.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to improving the quality and sustainability of our housing stock. Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
The Government assesses whether to add ESMs to this relief by evaluating them against the following principles: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions, and relieving the technology of VAT must be cost effective and align with broader VAT principles.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has held recent discussions with (a) financial institutions, (b) remittance service providers and (c) other relevant stakeholders on taking steps to reform remittances.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The government recognises that improved cross-border payment services, including remittances, would have widespread benefits for citizens and economies worldwide. The government works with UK and international partners, including under the G20 Roadmap for Enhancing Cross-Border Payments, to seek to deliver faster, cheaper, more transparent and more inclusive cross-border payments and remittances.
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of (a) climate change and (b) new oil and gas production on the economy.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Illustrative analysis in the OBR's 2024 Fiscal Risks and Sustainability Report suggests that UK GDP could be around 3% lower by 2074 under a below 2°C warming scenario and around 5% lower under a below 3°C warming scenario.
For decades, the North Sea’s workers, businesses and communities have been at the heart of Britain’s energy future - something they will continue to do for decades to come. This Government will not revoke existing licences and will partner with businesses and workers to manage our existing fields for the entirety of their lifespans
This Government is engaging industry via the ‘Building the North Sea’s Energy Future’ consultation to develop and set out the next steps for the overarching objective for the North Sea. Scaling up industries that will shape the future of the North Sea (including offshore wind, carbon capture and storage, hydrogen, and decommissioning), will be vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will consider including funding for homelessness services as part of the Comprehensive Spending Review.
Answered by Darren Jones - Chief Secretary to the Treasury
HMT will consider departmental budget requests as part of the Spending Review process and set out funding for future years at Phase 2 of the Spending Review. The government has already made steps to tackle homelessness through: funding at Autumn Budget 2024 where we announced an additional £233 million of resource funding for services in 2025/26; a commitment to the delivery of the biggest increase in social and affordable housebuilding in a generation and building 1.5 million new homes over the next parliament and through protecting renters by abolishing Section 21 ‘no fault’ evictions.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps her Department is taking to support the growth of small and micro businesses in the hospitality sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Small businesses are vital to our high streets and communities. The Government is committed to supporting the hospitality sector and we recognise the significant contribution they make to the UK economy.
The Government will introduce permanently lower tax rates for high street retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000, from 2026-27. In the meantime, the Government has prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
The Government has protected the smallest businesses from the impact of the increase to employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year.
The Government has committed £250m in 25-26 for the British Business Bank’s small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.
To drive further progress on our manifesto commitments, as part of the growth mission, the Government will bring forward a Small Business Strategy this year.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of bringing the tax regulations for Sharia-compliant mortgages in line with conventional mortgages.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to the continued strength of the UK Islamic Finance sector, both as an important part of the UK’s overall financial ecosystem and as an instrument of financial inclusion.
The alternative finance tax rules aim to provide a level playing field for tax purposes across alternative and conventional financing arrangements.
On 16 January 2024, HM Treasury published a consultation proposing changes to the Capital Gains Tax (CGT) rules that apply to alternative finance arrangements. The proposed changes seek to amend those rules so that where property is used as collateral for the purposes of raising finance, the CGT outcome is the same whether alternative finance or conventional finance is used. The consultation also asked whether there are any implications for capital allowances. The consultation closed on 9 April 2024 and the Government is considering responses. Next steps will be set out in due course.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to respond to the consultation entitled Tax Simplification for Alternative Finance, which closed 9 April 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to the continued strength of the UK Islamic Finance sector, both as an important part of the UK’s overall financial ecosystem and as an instrument of financial inclusion.
The alternative finance tax rules aim to provide a level playing field for tax purposes across alternative and conventional financing arrangements.
On 16 January 2024, HM Treasury published a consultation proposing changes to the Capital Gains Tax (CGT) rules that apply to alternative finance arrangements. The proposed changes seek to amend those rules so that where property is used as collateral for the purposes of raising finance, the CGT outcome is the same whether alternative finance or conventional finance is used. The consultation also asked whether there are any implications for capital allowances. The consultation closed on 9 April 2024 and the Government is considering responses. Next steps will be set out in due course.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish a list of the ten largest exporters of goods in each region of the UK.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as a National Statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (www.uktradeinfo.com). From this website, it is possible to build your own data tables based upon bespoke search criteria and download bulk datasets.
Under the Commissioners for Revenue and Customs Act 2005 (CRCA), HM Revenue and Customs (HMRC) has a statutory duty of confidentiality to protect the information it holds about taxpayers. As a result, it is not possible to confirm the ten largest exporters of goods in each region of the UK without the request identifying information relating to an individual taxpayer or taxpayers.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on the potential merits of increasing Official Development Assistance funding for the Prosperity Fund.
Answered by John Glen
The cross-government Prosperity Fund operated between 2016 and 2021 to promote the inclusive economic growth needed to reduce poverty in partner countries, whilst contributing to the UN’s Sustainable Development Goals. The Fund was closed on the 31 March 2021, with residual programming and funding instead moving to the Foreign Commonwealth and Development Office.
UK remains a champion for the international development agenda and a major donor globally. In 2022 the UK was the third largest development donor in the G7 as a percentage of Gross National Income, spending nearly £12.8 billion on aid. UK ODA, together with our business, trade, civil society, research and technology expertise, continues to support some of the world’s most vulnerable people and contributes to our prosperity and security by addressing key global challenges and strengthening our international partnerships.