Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with the National Cyber Security Centre on (a) long-term contract costs and (b) cybersecurity implications of awarding government-wide data infrastructure work to Palantir Technologies.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Cyber Security Centre is part of GCHQ, and works closely with the rest of Government to improve the cyber security of critical infrastructure and systems.
It is HMG policy not to comment on the details of the Single Intelligence Account, including contract costs and conversations with HMT.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of the High Income Child Benefit Charge on people earning just over £50,000 per year.
Answered by James Murray - Exchequer Secretary (HM Treasury)
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the High Income Child Benefit Charge on (a) single-earner and (b) dual-earner households with similar or higher combined incomes.
Answered by James Murray - Exchequer Secretary (HM Treasury)
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of using household income to levy the High Income Child Benefit Charge.
Answered by James Murray - Exchequer Secretary (HM Treasury)
By withdrawing Child Benefit from high-income parents where the higher earner earns £60,000 or more, the HICBC helps to ensure the sustainability of the public finances and protect our vital public services.
Information on the number of households that have a joint income of over £90,000 that are not subject to the High Income Child Benefit Charge is only available at disproportionate cost.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps she plans to take to support small businesses with (a) energy prices, (b) inflation and (c) business rates.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At Autumn Budget the Government announced it was freezing the small businesses multiplier for 2025-26, and extending the retail, hospitality and leisure (RHL) business rates relief for 1-year at 40% (up to a cash cap of £110,000 per business). This means over a million properties will be protected from inflationary increases. In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
On energy prices, the Government supports businesses with electricity costs through the British Industrial Energy Supercharger. This is targeted towards businesses that are simultaneously more exposed to competition through trade and more impacted by higher energy prices. Currently the scheme saves businesses approximately 34% on electricity costs.
The Bank of England has responsibility for sustainably returning inflation to the 2% target, and the Government is supporting them to control inflation by reducing borrowing year on year from 2025-26 and meeting the fiscal rules.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to raise the VAT registration threshold in line with inflation to support small businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.
Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. Tax breaks reduce the revenue available for public services and must represent value for money for the taxpayer.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spring Statement 2025, whether she has had discussions with Cabinet colleagues on the potential impact of welfare reforms on costs to the NHS.
Answered by Darren Jones - Chief Secretary to the Treasury
The Chancellor discussed welfare reforms with Cabinet colleagues in the usual way ahead of the publication of the Pathways to Work Green Paper and Spring Statement 2025.
As the Chancellor and the Work and Pensions Secretary have set out, these reforms will make the benefits system more pro work, and putting it on a more fiscally sustainable trajectory so that it can continue to protect the most vulnerable.
The Government is committed through its Plan to Change to getting the NHS back on its feet and has prioritised investment into it through a £22.6bn increase in resource spending for DHSC from 23/24 to 25/26.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to reform business rates to reduce the financial burden on small high street businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
At Autumn Budget 2024, we took the first step with the announcement of permanently lower tax rates for the Retail, Hospitality and Leisure properties that make up the backbone of our high streets, from 2026-27.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
The Budget announcements reflect the Government’s first steps to support the high street. We want to go further to modernise the system, and so, we have published a Discussion Paper setting out priority areas for reform. This paper invites industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Martin Wrigley (Liberal Democrat - Newton Abbot)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) increasing Employment Allowance and (b) reducing National Insurance contributions for small businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has taken necessary decisions to fix the public finances and create long-term stability in which businesses can invest and thrive.
The Government decided to protect the smallest businesses from the changes to Employer NICs announced at the last Budget by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change. It means employers will be able to employ up to four full-time workers on the National Living Wage without paying employer NICs.