Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on levels of investment in the UK defence industry of the requirement under Commission Delegated Regulation (EU) 2020/1818 that Paris-aligned Benchmarks and UK Climate Transition Benchmarks exclude companies involved in activities related to controversial weapons; and whether the Government has evaluated any wider (a) economic and (b) investment impacts of that requirement.
Answered by James Murray - Chief Secretary to the Treasury
As set out in response to PQ UIN 43043 on 9 April 2025, The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks.
The Financial Conduct Authority (FCA) monitors and supervises benchmark administrators according to the Benchmarks Regulation . The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025.
The Treasury launched a consultation on the future regulatory regime for benchmarks and benchmark administrators on 17 December 2025. This consultation seeks views on proposals to reform the UK’s existing benchmarks regime, including the Climate Transition Benchmark and Paris-Aligned Benchmark labels.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of Defence Sector exclusions within the Parliamentary Pension Scheme portfolio and whether this is compatible with Government defence sector financial objectives.
Answered by James Murray - Chief Secretary to the Treasury
The Parliamentary Contributory Pension Fund is independent from government and investment decisions are a matter for the scheme’s trustees.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to BBC article entitled Tax rises could push food prices higher, warn supermarkets, published on 26 October, what assessment she has made of the potential impact of an increase in business rates on food inflation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Treasury does not produce forecasts of the UK economy. Forecasting the economy, including the potential impact of Government policy decisions, is the responsibility of the independent Office for Budget Responsibility (OBR), which published its latest forecast on 26 November 2025. The OBR publishes estimates of the impact of policy decisions, however the potential impact of an increase in business rates on levels of food inflation was accessed not to have a material impact.
The OBR’s forecast shows wider government policy will reduce CPI inflation by 0.4 percentage points in 2026/27. This is the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to BBC article entitled Tax rises could push food prices higher, warn supermarkets, published on 26 October, what steps she is taking to work with retailers to mitigate the impact of food inflation.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government has announced a Food Inflation Gateway to assess and monitor regulation that could add to food prices. This will improve coordination and give food businesses a clear line of sight on upcoming regulatory changes, helping to keep costs down
The Government is also negotiating an agri-food agreement with the EU to reduce trade frictions, which is expected to save businesses up to £200 per fresh food shipment, helping to limit cost pressures across supply chains.
In addition, supermarkets will see a reduction in their total business rates bills in 2026/27 compared with 2025/26, and this will be kept under review at the next revaluation. The Office for Budget Responsibility does not expect changes in business rates to have a material impact on food inflation.
Overall, the OBR’s forecast shows government policy will reduce CPI inflation by 0.4 percentage points in 2026/27. This is the biggest near-term reduction in inflation due to government policy ever forecast by the OBR at a single fiscal event, outside of a crisis.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered the potential merits of moving the uprating of excise duty from RPI to CPI to help reduce inflation.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member to the answer given on 13 November 2025 to PQ UIN 88538.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimates her Department has made of the potential effect of increases in indirect taxation on the rate of inflation, with particular reference to the impact of increases in tobacco duty; and if she will make an assessment of the potential implications for her policies of the Institute for Fiscal Studies' estimate that cumulative increases in indirect taxation since the last Budget have added 0.4 percentage points to the current inflation rate.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Forecasting the economy, including the effect of Government policy decisions on inflation, is the responsibility of the independent Office for Budget Responsibility (OBR). The OBR set out its assessment of policy measures in its Autumn Budget 2024 forecast and will update this analysis, drawing on the latest outturn data, at its next forecast next week on 26 November. The Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has considered moving the uprating of excise duty from Retail Price Index to Consumer Prices Index.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government confirms tax rates and thresholds annually. In some cases, reflecting the government’s economic and fiscal objectives, they are uprated to account for inflation.
The Office for National Statistics, regulated by the UK Statistics Authority (UKSA), produces a range of inflation statistics. The most widely used estimates of inflation, both by Government and the private sector, are the Consumer Prices Index (CPI) and the Retail Prices Index (RPI)
The Government agrees with UKSA that RPI has flaws, and at times overstates and at times understates changes in prices. RPI’s shortcomings are well-documented. In 2013, as a result of flaws in the way it is measured, RPI lost its status as a National Statistic. Since 2010 the Government has been reducing its use of RPI and has committed to not introduce any new uses of RPI. Further moves away from RPI are complex and more work is required to understand the costs and benefits of any changes.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the tobacco excise regime on smoking prevalence since 2021.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates make tobacco less affordable and are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 11.9% in 2023. The ONS survey on adult smoking habits 2023 can be found here.
Adult smoking habits in the UK - Office for National Statistics
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to (a) reduce and (b) freeze tobacco excise duty.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At Autumn Budget 2024, the Government renewed the commitment to a tobacco duty escalator, which increases duty by 2 per cent above RPI inflation at each Budget, until the end of the current Parliament. This is part of the Government’s focus on health prevention and to continue our drive to reduce smoking prevalence.
Asked by: Jack Rankin (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether (a) her Department and (b) the Office for Budget Responsibility has made an assessment of the potential impact of levels of tobacco duty on smoking prevalence statistics.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Tobacco duty aims to both raise revenue and reduce harm to public health by discouraging smoking. High duty rates make tobacco less affordable and are a proven way to reduce smoking prevalence and have helped reduce the percentage of adult smokers in the UK from 26% in 2000 to 11.9% in 2023. The ONS survey on adult smoking habits 2023 can be found here.
Adult smoking habits in the UK - Office for National Statistics