Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of introducing regularised direct negotiations with workforce trades unions on (a) recruitment and (b) retention.
Answered by Darren Jones - Chief Secretary to the Treasury
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 December 2024 to Question 19626 on Public Sector: Collective Bargaining, what steps plans to take to help increase confidence in the public sector pay review body process.
Answered by Darren Jones - Chief Secretary to the Treasury
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of public sector pay awards in the 2025-26 financial year on trends in the (a) recruitment and (b) retention of public sector staff.
Answered by Darren Jones - Chief Secretary to the Treasury
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of implementing a long-term strategy to improve public sector pay in real terms.
Answered by Darren Jones - Chief Secretary to the Treasury
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the real terms value of public sector wages in each year since 2010.
Answered by Darren Jones - Chief Secretary to the Treasury
Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target.
The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth.
As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25.
Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place.
However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to provide hon. Members with an economic and fiscal outlook assessment by the Office for Budget Responsibility of the measures in the Pathways to Work Green Paper, published on 18 March 2025, before bringing forward legislative proposals on the measures.
Answered by Darren Jones - Chief Secretary to the Treasury
The Office for Budget Responsibility (OBR) published their latest Economic and Fiscal Outlook on 26 March 2025 alongside Spring Statement 2025. This included an assessment of some of the changes in the Pathways to Work Green Paper which the Government is legislating on, with the relevant legislation being introduced in due course. In their March 2025 Economic and Fiscal Outlook, the OBR stated they “plan to work with the Treasury and DWP to further scrutinise both the direct and indirect effects of these welfare and employment support policies ahead of our next forecast, alongside the effects of any further measures from the Green Paper that have been sufficiently developed”.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the adequacy of the role of the United Nations in the coordination of an international tax framework.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention.
The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members.
The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of a UN Tax Convention.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention.
The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members.
The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will bring forward legislative proposals to require private lenders to agree debt cancellation for lower income countries.
Answered by Darren Jones - Chief Secretary to the Treasury
The Government is committed to tackling unsustainable debt. Private lenders have an important part to play and alongside our partners in the G20 and Paris Club, we expect private creditors to participate in debt restructurings on comparable terms. This is a fundamental principle of the G20 Common Framework and we welcome recent agreements reached by bondholders of Zambia and Ghana.
At this stage, the Government is not pursuing a legislative approach that would force private or other lenders to participate in debt restructurings. The Government is focused on delivering a market-based (contractual) approach to private sector participation, to promote more efficient restructurings, reduce the ability for creditors to hold out, and increase transparency.
Asked by: Andy McDonald (Labour - Middlesbrough and Thornaby East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of applications for (a) enhanced capital allowances, (b) Stamp Duty Land Tax relief and (c) employer National Insurance contributions relief that were processed in the tax sites of the Tees Freeport in each month since November 2021 to date.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Since November 2021, under the tax reliefs available at Teesside Freeport, HMRC has not received any claims for enhanced capital allowances and Stamp Duty Land Tax relief. It is normal for there to be a delay in the receipt of enhanced capital allowance claims because claims are made in the corporation tax return within one year from the end of the accounting period for which the claim relates, and there is scope for SDLT freeport claims to be made up to 30 September 2026.
With regards to Employer National Insurance contributions relief, HMRC do not routinely analyse take-up at an individual Freeport level, and so do not have the requested data readily available.