Asked by: Antonia Bance (Labour - Tipton and Wednesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of restricting the UK CBAM to primary materials on imports of finished steel goods.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
For the introduction of the CBAM in 2027, the Government has focused on three factors to determine its scope: firstly, those sectors within scope of the UK Emissions Trading Scheme; secondly, those most at risk of carbon leakage; and thirdly, where effective implementation is feasible. As a result, for now we have focused on including the simplest (upstream) goods within the iron and steel, aluminium, cement, fertiliser and hydrogen sectors and the Government’s priority is to deliver an effective CBAM on these sectors for 1 January 2027.
The government will keep the list of products in scope of CBAM under review from 2027 onwards, to reflect the evolving carbon leakage context.
Asked by: Antonia Bance (Labour - Tipton and Wednesbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of charging a 5% surcharge when paying vehicle tax by direct debit on lower income motorists; and whether she has plans to remove this surcharge.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
When Vehicle Excise Duty (VED) is paid monthly or six-monthly, rather than annually, the cost to the exchequer is higher because of lost interest. To reflect this impact on the public finances, the previous government introduced in 2014 an extra charge for monthly and six-monthly VED payments to make up for the lost interest
The Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy. The Chancellor makes decisions on tax policy at fiscal events in the context of the public finances.