Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure coherence between the Soft Drinks Industry Levy and other Government frameworks, including nutrient profiling, dietary guidance and restrictions on foods high in fat, sugar and salt.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
When considering the reforms to the Soft Drinks Industry Levy (SDIL) announced at Budget 2025, HM Treasury worked closely with the Department for Health and Social Care throughout the process, including to consider whether the SDIL minimum sugar content threshold could, and should, align with the nutrient profiling model (NPM). However, it would be complex to align the SDIL, which applies only to drinks and is based on sugar content alone, with the NPM, which determines what are ‘less healthy’ foods and drinks by balancing a range of beneficial and less beneficial nutrients.
The government judges that the new SDIL threshold of 4.5g total sugar per 100ml strikes a fair balance between delivering on the SDIL’s health objectives and supporting producers with the process of reformulation.
Given the government recognises that these reforms ask soft drink producers to adapt and invest in further reformulation, and that certainty is required to support this process, the Chancellor has committed to not make any further changes to the design of the SDIL this Parliament.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment with Cabinet colleagues of the potential impact of the level of VAT applied to (a) building refurbishment and renovations and (b) new build projects on resource efficiency in the construction sector.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
The construction of certain new-build properties, including residential buildings, is subject to a VAT zero rate to encourage the construction of new homes. A reduced rate of VAT at five per cent is also maintained, subject to certain conditions, for residential renovations. This includes conversions of buildings from one residential use to another, conversions from commercial to residential use, and the renovation of properties that have been empty for two years or more.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his letters to the Governor of the Bank of England on the Remit and Recommendations for the Financial Policy Committee of 17 November 2022 and 22 November 2023, for what reason the bullet point on climate change and energy security in part C ii of the 2022 Remit and Recommendations is not present in that part of the 2023 Remit and Recommendations.
Answered by Bim Afolami
HM Treasury ministers have regular discussions with their colleagues across Government on climate change, including on the implementation of the Green Finance Strategy. The breadth of work the Government is doing through the Strategy will reinforce the UK’s status as a leading centre for green finance.
The Chancellor of the Exchequer is responsible for setting the Remit for the Financial Policy Committee (FPC) once per year, and may also make recommendations regarding matters the FPC should consider as relevant to its primary financial stability objective and its secondary objective to support the Government’s economic policy.
The FPC's remit is an important accountability mechanism to ensure the Committee has a clear framework through which it can make policy decisions and consider any trade-offs. This is important given the complexity of the FPC’s work.
Yearly updates to the Remit ensure that it reflects the current economic context, the Government’s policy, as well as the FPC’s responsibilities and powers. Climate change is an important part of the FPC's remit: both due to the relevance of climate related risks to the Committee’s primary financial stability objective, and because increasing long-term energy security and delivering Net Zero are included as key parts of the Government’s economic policy and are therefore relevant to its secondary objective.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Energy Security and Net Zero on Remit and Recommendations of the Financial Policy Committee of the Bank of England.
Answered by Bim Afolami
HM Treasury ministers have regular discussions with their colleagues across Government on climate change, including on the implementation of the Green Finance Strategy. The breadth of work the Government is doing through the Strategy will reinforce the UK’s status as a leading centre for green finance.
The Chancellor of the Exchequer is responsible for setting the Remit for the Financial Policy Committee (FPC) once per year, and may also make recommendations regarding matters the FPC should consider as relevant to its primary financial stability objective and its secondary objective to support the Government’s economic policy.
The FPC's remit is an important accountability mechanism to ensure the Committee has a clear framework through which it can make policy decisions and consider any trade-offs. This is important given the complexity of the FPC’s work.
Yearly updates to the Remit ensure that it reflects the current economic context, the Government’s policy, as well as the FPC’s responsibilities and powers. Climate change is an important part of the FPC's remit: both due to the relevance of climate related risks to the Committee’s primary financial stability objective, and because increasing long-term energy security and delivering Net Zero are included as key parts of the Government’s economic policy and are therefore relevant to its secondary objective.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Green Finance Strategy, when the Government plans to publish the consultation on introducing a Green Taxonomy for the UK.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The 2023 Green Finance Strategy set out the Government’s commitment to deliver a UK Green Taxonomy to support an increase in financing for activities supporting the transition to net zero and delivering on UK environmental objectives. It also announced that we expect to consult on the Taxonomy in Autumn 2023.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the announcement in the Autumn Budget 2021 that Landfill Tax would increase in 2023 and 2024 in line with RPI, what level of RPI was used to determine the increase in Landfill Tax in 2023; and if he will make an assessment of the impact on Landfill Tax revenues if the tax rate had been uprated in line with current RPI.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
At Autumn Budget 2021 and Spring Budget 2023 the government pre-announced Landfill Tax rates would increase in line with RPI inflation, from April 2023 and April 2024 respectively. Pre-announcing Landfill Tax rates provides businesses with greater certainty and supports investment in more sustainable alternatives to landfill.
To calculate Landfill Tax rates applicable from April 2023, the government used a forecast of RPI for the period 2023Q2 to 2024Q2, provided by the OBR. The same methodology was used to calculate Landfill Tax rates applicable from April 2024.
Landfill Tax works hand in hand with a wider package of measures set out in the 2018 Resources and Waste Strategy for England which are designed to encourage waste to be managed more sustainably. Since 2000, local authority waste sent to landfill in England has fallen by 90%.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment has he made of the potential impact of the level of landfill tax on the (a) amount and (b) proportion of waste sent to landfill.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
At Autumn Budget 2021 and Spring Budget 2023 the government pre-announced Landfill Tax rates would increase in line with RPI inflation, from April 2023 and April 2024 respectively. Pre-announcing Landfill Tax rates provides businesses with greater certainty and supports investment in more sustainable alternatives to landfill.
To calculate Landfill Tax rates applicable from April 2023, the government used a forecast of RPI for the period 2023Q2 to 2024Q2, provided by the OBR. The same methodology was used to calculate Landfill Tax rates applicable from April 2024.
Landfill Tax works hand in hand with a wider package of measures set out in the 2018 Resources and Waste Strategy for England which are designed to encourage waste to be managed more sustainably. Since 2000, local authority waste sent to landfill in England has fallen by 90%.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Annex A of the Spring Budget 2023: Overview of Tax Legislation and Rates, published on 15 March 2023, what measure of RPI was used to set the Landfill Tax rate from 1 April 2024; and on what evidential basis this level of RPI was chosen.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
At Autumn Budget 2021 and Spring Budget 2023 the government pre-announced Landfill Tax rates would increase in line with RPI inflation, from April 2023 and April 2024 respectively. Pre-announcing Landfill Tax rates provides businesses with greater certainty and supports investment in more sustainable alternatives to landfill.
To calculate Landfill Tax rates applicable from April 2023, the government used a forecast of RPI for the period 2023Q2 to 2024Q2, provided by the OBR. The same methodology was used to calculate Landfill Tax rates applicable from April 2024.
Landfill Tax works hand in hand with a wider package of measures set out in the 2018 Resources and Waste Strategy for England which are designed to encourage waste to be managed more sustainably. Since 2000, local authority waste sent to landfill in England has fallen by 90%.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps he has taken to ensure fairness in the operation of the tax system.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
It is right that everyone contributes to sustainable public finances and the government is ensuring those with the broadest shoulders pay their fair share.
Spring Budget took steps to tackle non-compliance and improve HMRC’s ability to collect tax debts.
Because of our commitment over 13 years to help the lowest earners, people can now earn over £1000 a month free from income tax or National Insurance.
Asked by: Kerry McCarthy (Labour - Bristol East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much of the £30 billion of domestic investment for the green industrial revolution announced at the Spending Review 2021 has been allocated as of 18 July 2023; what the planned allocation is in each year; and on what measures funding (a) has been and (b) is planned to be spent.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
The Government allocated investment in line with the Net Zero Strategy (2021). The planned allocation for this investment by sub-sector and for each year of the Spending Review is provided in Table 2.5 in the Spending Review 2021 document, available at the link below:
https://www.gov.uk/government/publications/autumn-budget-and-spending-review-2021-documents
Departments are responsible for reporting on their expenditure and do so in their Annual Reports and Accounts at the end of the relevant financial year.