Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to replace the public sector pay review bodies with collective bargaining.
Answered by Darren Jones - Chief Secretary to the Treasury
The PRB process is the established mechanism for determining pay uplifts for many workforces in the public sector. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role – and which unions campaigned to establish in the first place.
The Chancellor is committed to this process but recognises that confidence in the process has fallen in recent years. The Government is committed to restoring this confidence
That is why the Government took the decision to launch the 2025/26 pay round in September 2024 - three months earlier than last year. This will mean public sector workers get their pay awards closer to the start of the financial year, putting us on track to restore the process to its proper timetable by 2026/27.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 September 2024 to Question 3666 on Private Education: VAT, what steps she plans to take to monitor the impact of the policy changes on military families.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC routinely monitors the impact of policy changes. The measure to remove the VAT exemption for education and boarding services provided by private schools will be kept under review through communication with affected stakeholder groups and stakeholders as well as education departments across the devolved governments.
The government greatly values the contribution of diplomatic staff and serving personnel and provides the Continuity of Education allowance (CEA) to ensure that the need for frequent mobility does not interfere with the education of their children.
As the government set out in its Summary of Responses to the Technical Note on Applying VAT to Private School Fees, the MoD has increased the funding allocated to the CEA to account for the impact of any private school fee increases on the proportion of fees covered by the CEA, in line with how the allowance normally operates.
A Tax Information and Impact Note (TIIN) has been published which gives a clear explanation of the policy objective together with comprehensive assessment of the impacts on the Exchequer, individuals and families, businesses and the wider economy, equalities impacts, and any other specific area of impact. The TIIN can be found here: Applying VAT to private school fees - GOV.UK (www.gov.uk).
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will extend the Employment Allowance to (a) GPs and (b) other people providing public services.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has not changed the eligibility rules on the Employment Allowance beyond removing the £100,000 eligibility threshold.
Government guidance on the Employment Allowance states that you ‘cannot claim if you’re a public body or business doing more than half your work in the public sector – unless you’re a charity’.
The eligibility of a specific sector or organisation will depend on the make-up of an individual business's work.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will propose that the principles of (a) human rights, (b) workers' rights and (c) climate justice are contained within the UN Tax Convention.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention.
The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members.
The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to support the UN Tax Convention.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention.
The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members.
The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with the Royal Household on the administration of the Duchies of (a) Cornwall and (b) Lancaster.
Answered by Darren Jones - Chief Secretary to the Treasury
The Duchies of Cornwall and Lancaster are private estates, and neither Duchy manages public money. The government has a limited number of functions in relation to their administration, prescribed by Acts of Parliament.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, published on 30 October 2024, HC 295, if she will make it her policy to exempt hospices from the increase in employers’ National Insurance Contributions.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Resource spending for the Department of Health and Social Care is set to increase by £22.6 billion in 2025-26 compared to 2023-24 outturn, providing a real-terms growth rate of 4% for the NHS, the largest since before 2010 excluding Covid-19 years. The Government will support local authority services through a real terms increase in core local government spending power of around 3.2%, including at least £600 million of new grant funding to support social care.
The government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. Our tax regime for charities, including exemption from paying business rates, is among the most generous of anywhere in the world with tax reliefs for charities and their donors worth just over £6 billion for the tax year to April 2024.
The Budget will provide support for government departments and other public sector employers for additional Employer NICs costs only. Private sector firms or charities including hospices or social care providers that are contracted by central or local Government will not be exempt from these changes. General Practitioners are independent contractors and therefore will not be exempt from these changes.
This is consistent with the approach to previous Employer NICs changes, as was the case with the previous Government’s Health and Social Care Levy.
DHSC will confirm funding for General Practice for 25/26 as part of the usual GP contract process later in the year, including through consultation with the sector.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people received tax relief on their pension contributions at the (a) 20% and (b) 40% rate in the latest period for which data is available.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Information on estimates of Income Tax relief on pension contributions can be found online in Table 6 of the Private Pension Statistics publication. Estimates of the total value of Income Tax and National Insurance contribution relief, broken down by the rate at which the contributions were relieved, can be found in Tables 6.1 and 6.2 of the publication respectively.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total value was of pension tax relief to people paying the (a) 20% and (b) 40% rate in the latest period for which data is available.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Information on estimates of Income Tax relief on pension contributions can be found online in Table 6 of the Private Pension Statistics publication. Estimates of the total value of Income Tax and National Insurance contribution relief, broken down by the rate at which the contributions were relieved, can be found in Tables 6.1 and 6.2 of the publication respectively.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help reduce wealth inequality.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is committed to making sure everyone pays their fair share of tax, which helps to fund our vital public services.
The UK taxes wealth across many different economic activities, helping to ensure that the most well-off in our society make a fair contribution.