Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing a system on universal basic capital based on the universal roll-out of sidecar accounts into which is paid a one off dividend from the National Wealth Fund.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the positive effect that saving can have on financial resilience and is committed to incentivising greater saving and investment. The Government supports people of all incomes and at all stages of life to save and offers a wide range of savings products, including the Individual Savings Accounts (ISAs), Junior ISA and Help to Save. We have also committed to consider what more can be done to support household savings as part of the Financial Inclusion Strategy which will be published later this year.
The purpose of the National Wealth Fund is to support the delivery of the Government’s industrial strategy, mobilise private capital and make an overall return for the taxpayer. This will support the Government’s clean energy and growth missions.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what role the Growth Mission Board will have in the Spending Review.
Answered by Tulip Siddiq
Delivering growth is the government’s number one mission; through the growth mission, the government is restoring stability, increasing investment, and reforming the economy to drive up prosperity and living standards across the UK. This will be reflected in the government’s approach to the Spending Review, as part of which departments will be required to prioritise growth within their spending plans. The Growth Mission Board will continue to drive forward the government’s growth mission to rebuild Britain and make every part of the country better off.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what estimate she has made of how many economically inactive people will rejoin the workforce as a result of the measures announced in the Get Britain Working White Paper.
Answered by Alison McGovern - Minister of State (Department for Work and Pensions)
The trend of economic inactivity is a long-term challenge; the UK is the only country in the G7 with an inactivity rate higher than before the pandemic. Building a thriving labour market, reducing economic inactivity and increasing the number of people in work is central to growing the economy.
Fundamental reforms announced in the Get Britain Working white paper will help us achieve the bold, long-term ambition of an 80% employment rate, meaning over two million more people in work and the UK as one of the top performing labour markets in the OECD.
Backed by £240m of funding announced in the Budget, the White Paper sets out ambitious reform outlined in three interconnected parts:
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what estimate she has made of the impact on economic growth of the measures announced in the Get Britain Working White Paper.
Answered by Alison McGovern - Minister of State (Department for Work and Pensions)
The trend of economic inactivity is a long-term challenge; the UK is the only country in the G7 with an inactivity rate higher than before the pandemic. Building a thriving labour market, reducing economic inactivity and increasing the number of people in work is central to growing the economy.
Fundamental reforms announced in the Get Britain Working white paper will help us achieve the bold, long-term ambition of an 80% employment rate, meaning over two million more people in work and the UK as one of the top performing labour markets in the OECD.
Backed by £240m of funding announced in the Budget, the White Paper sets out ambitious reform outlined in three interconnected parts:
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what role her Department’s Enterprise and Growth Unit will have in supporting (a) the Government’s Growth Mission and (b) the Spending Review next year.
Answered by Tulip Siddiq
The growth mission is the government’s central mission. The Enterprise and Growth Unit plays a key role in driving the mission forward. It is focused on policy development, in partnership with business, industry and other stakeholders, across the seven growth mission pillars outlined at the Autumn Budget. It works closely with other groups within HM Treasury, for example the International and Financial Services Groups and the new Growth Delivery Unit which is focused on delivery.
At the Spending Review, the Enterprise and Growth Unit is responsible for spending control for several departments and will work closely with departments to ensure spending plans are affordable and support the government’s missions.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the HM Treasury:
To ask the Chancellor for the Exchequer, if she will publish the forecasts of the size of the UK labour force broken down by the net migration forecast by (a) the Office of Budget Responsibility and (b) other bodies for the forecast period used by that Office.
Answered by Tulip Siddiq
The independent Office for Budget Responsibility is responsible for producing forecasts of the UK economy, including the size of the labour force and net migration. The OBR’s latest forecasts, in the October 2024 Economic and fiscal outlook, are available at the OBR’s website.1.
The Office for National Statistics publishes National Population Projections. For the purposes of producing these projections, the ONS produces assumptions for the projected growth in population due to net migration. The ONS’s latest projections, published in January 2024, assume long-term net international migration of 315,000 per year from the year ending mid-2028 onwards. The projections are published on the ONS’s website here: National population projections - Office for National Statistics
1. https://obr.uk/efo/economic-and-fiscal-outlook-october-2024/
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the planned £20.4 billion of research and development spending on (a) economic growth, (b) the national investment rate and (c) crowding in of private investment.
Answered by Darren Jones - Chief Secretary to the Treasury
At Autumn Budget 2024, the government protected R&D by allocating £20.4bn to support its missions, including the growth mission. Recent Department for Science, Innovation and Technology published research has found an average rate of return to public R&D of 40% after 6 years from when the investment is made [1]. The government’s investment will also boost business investment in R&D. Although estimates of the impact on private investment vary, on average £1 of public R&D investment leverages around £2 of private R&D investment in the long run [2]. The Office for Budget Responsibility is responsible for modelling the impact of government policy on the economy.
[1] Returns to Public Research and Development - GOV.UK
[2] Research and development: relationship between public and private funding - GOV.UK
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, with refence to section 1.3 2. of his policy paper entitled The Atlantic Declaration, updated on 21 June 2023, what progress he has made on establishing an outbound investment mechanism.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
The Department for Business and Trade is keeping the potential national security risk posed by outward direct investment in sensitive sectors under review, and continuing to engage with businesses and financial stakeholders on this issue. In May, the Cabinet Office issued public guidance on how the existing National Security and Investment Act powers allow the Government to intervene in certain outward direct investment transactions.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Ministry of Defence:
To ask the Secretary of State for Defence, with reference paragraph 4.51 of the Autumn Budget 2024, what his Department's priorities are for the planned £20 billion spending with UK industry in 2025-26.
Answered by Maria Eagle - Minister of State (Ministry of Defence)
Funding for the Ministry of Defence for financial year 2025-26 has not yet been allocated to specific programmes or activities. The Department is still in the process of setting budgets internally.
Asked by: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how much private investment he expects from the additional funding allocated to the automotive sector in the next five years.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Budget committed over £2bn to 2030 for zero-emission vehicle manufacturing and their supply chains. This funding will build on previous ATF and APC programmes which have leveraged over £6bn of investment from the private sector so far. We will continue with this success, unlocking billions more in private investment to support our automotive industry. Further details will be announced as part of the industrial strategy.