Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the Minister for Finance in Northern Ireland on the potential impact of increases in employers' National Insurance contributions on community and voluntary sector organisations in Northern Ireland.
Answered by Darren Jones - Chief Secretary to the Treasury
In order to repair the public finances and help raise the revenue required to increase funding for public services, the UK Government has taken the difficult decision to increase employer National Insurance contributions (NICs).
The UK Government recognises the need to protect 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.
In addition, charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
The devolved governments will receive funding through the Barnett Formula in 2025-26 for any changes to UK Government department budgets, including support for employer NICs. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.
This funding will be in addition to the devolved governments’ record Spending Review settlements for 2025-26, which are the largest in real terms of any settlements since devolution.
I regularly engage with the Minister of Finance for Northern Ireland on a variety of issues, including the impact of Autumn Budget 2024 in Northern Ireland.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number and proportion of farms that will be affected by changes to agricultural property relief in Northern Ireland.
Answered by James Murray - Exchequer Secretary (HM Treasury)
I refer the Honourable Member to the PQ referenced 12861 published on 15th November 2024 at https://questions-statements.parliament.uk/written-questions/detail/2024-11-05/12861.
The Chancellor also recently wrote to the Chair of the Treasury Select Committee, and her letter may be of interest: https://committees.parliament.uk/publications/45691/documents/226235/default/.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12760 on Employers' Contributions: General Practitioners, whether support arrangements for additional employer National Insurance contribution costs will be provided to the Northern Ireland Executive as ringfenced resource expenditure for (a) public bodies, (b) GPs and (c) NHS dentists.
Answered by Darren Jones - Chief Secretary to the Treasury
As has been confirmed, the UK Government will provide support for departments and other public sector employers for additional employer National Insurance contributions costs. The detail of this policy change is being worked through thoroughly.
My department will continue to engage with the devolved governments.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, what assessment she has made of the potential impact of changes to employer National Insurance contribution rates on GPs in Northern Ireland; and whether she plans to take steps with Cabinet colleagues to provide additional support to GP practices affected by those changes.
Answered by Darren Jones - Chief Secretary to the Treasury
Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why we are asking employers to contribute more. A Tax Information and Impact Note will be published in due course alongside the legislation when it is introduced to Parliament.
The UK Government will provide support for departments and other public sector employers for additional employer National Insurance contributions costs. This funding will be allocated to UK Government departments, with the Barnett formula applying in the usual way for the devolved governments.
This funding will be in addition to the £1.5 billion in Barnett consequentials the NIE is receiving in 2025-26 as a result of decisions taken at Autumn Budget. The NIE’s settlement for 2025-26 delivers a real-terms increase and is the largest in real terms of any settlement since devolution.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance his Department issues on the requirements for customs declarations for business-to-business shipments exceeding the value of £135 between Great Britain and Northern Ireland.
Answered by Nigel Huddleston
The Government has recently issued guidance on the long-term arrangements for business-to-business parcels which is available on gov.uk - www.gov.uk/government/publications/moving-parcels-from-great-britain-to-northern-ireland-under-the-windsor-framework-from-30-september-2024.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department plans to take to implement public sector pay rises in Northern Ireland.
Answered by John Glen
The Government is accepting the headline pay recommendations of the independent Pay Review Bodies in full for 2023/24. This will be funded from within existing department budgets through a combination of greater efficiency and reprioritisation.
Equivalent decisions in Northern Ireland are devolved.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what data his Department holds on the revenue raised by the Soft Drinks Industry Levy for Northern Ireland for financial year (a) 2020-21, (b) 2021-22 and (c) 2022-23; and if will provide details of how much of levy raised will be distributed to Northern Ireland using the Barnett formula.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Government does not breakdown the revenue raised from the Soft Drinks Industry Levy specifically for Northern Ireland.
Since January 2020, HMRC no longer publish disaggregated tax receipts. However, HMG continues to input into the Office for National Statistics’ Country and Regional Analysis publication which presents statistical estimates for the allocation of identifiable expenditure between the regions and nations of the UK and includes estimates for Northern Ireland. The latest report can be accessed via this link:
The devolved administrations are well funded through the operation of the Barnett formula, receiving around 20% more than equivalent UK Government spending in other parts of the UK.
The Block Grant Transparency publication sets out a full breakdown of the funding provided to the devolved administrations and is due to be updated shortly.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much revenue has been generated by the soft drinks industry levy in Northern Ireland in each of the last three years; and whether this funding has been used to help tackle (a) poor oral health, (b) obesity, (c) diabetes and (d) other issues.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Government remains committed to helping people live healthier lives. Having a fit and healthy population is essential for a thriving economy and addressing obesity remains a priority for the Government.
The Government does not breakdown the revenue raised from the Soft Drinks Industry Levy (SDIL) specifically for Northern Ireland.
Headline statistics including total SDIL receipts are published online and can be accessed via this link: https://www.gov.uk/government/statistics/soft-drinks-industry-levy-statistics
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of Section 63 and Schedule 14 of the Financial Services and Markets Bill on parity of Northern Ireland credits unions with those in Great Britain.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Government is a strong supporter of the mutuals sector and recognises the unique role credit unions play in their communities, providing savings and affordable loans to their members.
Clause 63 introduces Schedule 14 of the Financial Services and Markets Bill 2022, which makes amendments to the Credit Unions Act 1979 to allow credit unions in Great Britain to offer a wider range of products and services, thereby supporting the growth, diversification, and development of the sector.
Responsibility for credit unions in Northern Ireland is a devolved matter.
Officials have engaged with counterparts in the Northern Ireland Department for the Economy and are willing to engage further should they wish to implement something similar for credit unions in Northern Ireland.
Asked by: Colum Eastwood (Social Democratic & Labour Party - Foyle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect of the proposed changes to rebated gas and oil scheduled for April 2022 on the sustainability of the construction sector in Northern Ireland.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that the Government will remove the entitlement to use rebated diesel and biofuels from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies. As part of the changes, duty will also be extended to biodiesel used for heating.
The Government recognised that these reforms would be a significant change for some businesses and ran a consultation to gather information on the expected impact and make sure it had not overlooked any exceptional reasons why affected sectors should be allowed to continue to use rebated diesel and biofuels beyond April 2022. During the consultation period, the Government engaged directly with a wide variety of organisations from all parts of the UK, including sectors which consume rebated diesel and biofuels, and fuel suppliers.
Following the consultation, the Chancellor granted entitlements to use rebated diesel and biofuels after April 2022 for a limited number of users, including for use in non-commercial heating and power generation. In the case of non-commercial heating, the Government felt there was a risk that removing entitlement would significantly increase the heating bills of households that use diesel, especially those in areas off the gas grid where there is no alternative.
The Government did not believe that the cases made by sectors that will not retain their red diesel entitlement outweighed the need to ensure fairness between the different uses of diesel fuels and the Government’s environmental objectives.
To support the development of alternatives that affected businesses can switch to, the Government is at least doubling the funding provided for energy innovation through the new £1 billion Net Zero Innovation Portfolio. From that portfolio, the Government announced the £40 million Red Diesel Replacement Competition, which will provide grant funding for projects that develop and demonstrate lower carbon, lower cost alternatives to red diesel for the construction, and mining and quarrying sectors.
HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuels, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022