Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will publish an impact assessment for a Carbon Border Adjustment Mechanism on UK exporters.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The aim of the UK CBAM is to ensure imported products are subject to a carbon price comparable to that incurred by UK production, mitigating the risk of carbon leakage. By its very nature, a CBAM can only apply to imported goods, so it cannot mitigate any risk of carbon leakage in export markets.
The government will continue to consider whether there is a role for existing or future carbon leakage policies to address the risk associated with exports. Any policies applied to exported products would need to be compliant with the UK’s WTO obligations and our commitment to free and open trade.
A more detailed assessment of CBAM impacts on the economy and carbon leakage will be provided before legislation is introduced.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with representatives from the banking sector on the adequacy of property valuations for mortgage applications.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Government is regularly in contact with mortgage lenders on all aspects of their business, including the mortgage application process.
The specific details of how property valuations are carried out for mortgage applications is a commercial decision for lenders in which the Government does not intervene.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the regulation of mortgage brokers.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), which is independent of Government, is responsible for the regulation of mortgage brokers in the UK. Mortgage brokers must either be authorised by the FCA or become an appointed representative of another firm that has the relevant permissions.
The FCA is also responsible for monitoring authorised firms, including mortgage brokers, to ensure they comply with its rules and has powers to take action if necessary.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of increasing employer’s National Insurance contributions on charities in (a) the East of England and (b) the rest of the UK.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the important role charities play in our society, and has made it a priority to reset the relationship with civil society by developing a Civil Society Covenant.
To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.
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 employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
More broadly, within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the memo to item 26 on page 118 of the Autumn Budget 2024, HC 295, what methodology she used to calculate the public sector compensation amount for the increase to employer National Insurance contributions.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The amount of public sector support was based on an estimate of the proportion of employer NICs receipts paid by public sector organisations, using the Office for National Statistics (ONS) classification of the public sector boundary. The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to item 26 on page 118 of the Autumn Budget 2024, HC 295, how she defines public sector organisations.
Answered by Darren Jones - Chief Secretary to the Treasury
For the purposes of defining support for Employer NICs costs, the Government has used the Office for National Statistics (ONS) classification of the public sector boundary. This is the usual approach for classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what industrial disputes are ongoing within (a) her Department, (b) HMRC, (c) the Valuation Office Agency and (d) each of the other arm’s length bodies connected to her Department; how many (i) staff and (ii) contractors are involved in each dispute; what the form of industrial action is in each dispute; which recognised trade union is involved in each dispute; what the substantive matter is that is being disputed in each case; and what steps she plans to take to end each dispute.
Answered by Darren Jones - Chief Secretary to the Treasury
(a) No recognised trade union currently holds a mandate to call industrial action in HM Treasury.
(b) PCS are in a formal trade dispute with HMRC and have issued a formal notice of their intention to ballot 238 members in the Benton Park View Office in Newcastle.
How many (i) staff and (ii) contractors are involved in each dispute;
238 AA and AO Grade PCS members will be balloted for strike action. The ballot opens 18 November and closes at noon 9 December. No contractors are involved in the dispute.
What the form of industrial action is in each dispute;
Members are being balloted for strike action
Which recognised trade union is involved in each dispute;
PCS
What the substantive matter is that is being disputed in each case; and what steps to be taken to end each dispute:
The dispute relates to the dismissal of 3 trade union representatives from Benton Park View office and PCS’s request for reinstatement of those dismissed. HMRC’s established guidance and procedures for dealing with issues of misconduct have been followed in relation to these cases and HMRC has held colleagues to the same standards of conduct we expect from all HMRC employees. There are specific formal and legal routes for the dismissed employees to seek redress if they believe that their employment rights have been infringed. All three cases have ongoing Employment Tribunal claims.
(c) VOA - no industrial disputes to report
(d) In relation to HM Treasury arm’s length bodies please see below responses:
UK Debt Management Office – no industrial disputes to report
National Infrastructure Commission– no industrial disputes to report
UK Government Investments - no industrial disputes to report
Office for Budget Responsibility - no industrial disputes to report
Government Internal Audit Agency - no industrial disputes to report
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to implement Section 14 of the Finance Act 2024.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Section 14 of the Finance Act 2024 came into force on 6 April 2024.
Subsequent clarificatory regulations have been laid and come into force from 18 November, taking retrospective effect from 6 April 2024.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to reform business rates.
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.
Autumn Budget 2024 announced the government’s first steps, including an intention to introduce permanently lower multipliers for high street retail, hospitality, and leisure (RHL) properties from April 2026. The government intends to fund this sustainably via a higher multiplier on properties with Rateable Values (RV) of £500,000 or more.
During the interim period, for 2025-26, RHL properties will receive a 40% relief on business rates bills up to a cash cap of £110,000 per business. The small business multiplier paid by properties with RVs below £51,000 will also be frozen for a further year.
The government has published a discussion paper which sets out priority areas for further reform and invites stakeholders to a conversation about transforming the system over the Parliament.
Asked by: Nick Timothy (Conservative - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many claims for Research and Development tax credits were made (a) fraudulently and (b) in error since 2010
Answered by James Murray - Exchequer Secretary (HM Treasury)
Estimates of the level of error and fraud in research and development tax credits are published in HMRC’s Annual Report and Accounts. The latest publication can be found on Gov.uk at: HMRC Annual Report and Accounts 2023 to 2024 . The methodology used to calculate the level of error and fraud for 2020-2021 was significantly improved for the 2022-2023 Annual Reports and Accounts.
Estimates of the level of error and fraud in research and development tax credits for earlier years are not available on a comparable basis.