Asked by: Alison Taylor (Labour - Paisley and Renfrewshire North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contribution rates on third sector organisations; and whether she plans to take steps with Cabinet colleagues to provide additional funding to charities to support them with these costs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the important role charities play in our society, and has made it a priority to develop a Civil Society Covenant recognising the sector as a trusted and independent partner.
Within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving. The tax reliefs available to charities are a vital element in supporting charitable causes across the UK, and our tax regime for charities is among the most generous of anywhere in the world with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024. The biggest individual reliefs provided are Gift Aid at £1.6 billion and business rates relief at nearly £2.4 billion.
To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.
The Government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
The Government has committed to provide support for departments and other public sector employers for additional Employer NICs costs only. This is the usual approach the Government takes to supporting the public sector with additional Employer NICs costs, as was the case with the previous Government’s Health and Social Care Levy.
Asked by: Alison Taylor (Labour - Paisley and Renfrewshire North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that the Pensions Investment Review makes an assessment of the potential impact of each of its recommendations on people who plan to retire in the next five years.
Answered by Emma Reynolds - Parliamentary Secretary (HM Treasury)
Since launching in July, the Pensions Investment Review has focused on engaging with stakeholders and gathering insights and evidence. A Call for Evidence was published in September and the evidence received will inform our understanding of the impacts any changes in this area could have on savers.
Any measures that are taken forward into legislation will have the relevant accompanying impact assessments.
Asked by: Alison Taylor (Labour - Paisley and Renfrewshire North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) introducing transitional arrangements for and (b) delaying implementation of her policy on VAT on school fees in Scotland.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Whilst developing these policies, the Government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. This consideration includes the impacts of these changes across all four nations of the UK.
The Government has additionally engaged extensively with all the devolved Governments, including the Scottish Government, on this issue.
Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October and set out its assessment of relevant expected impacts in a Tax Information and Impact Note (TIIN).