Asked by: Priti Patel (Conservative - Witham)
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, what estimate she has made of the cost to the public purse through (a) third party spend and (b) contracts as a result of changes to employers National Insurance Contributions in each of the next five years; and if she will publish any modelling undertaken on this.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Chancellor made an announcement at the Autumn Budget setting out that the rate of Employer National Insurance Contributions will increase from 13.8% to 15% from 6 April 2025. Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why the Government is asking employers to contribute more. At the Autumn Budget, the Chancellor also agreed departmental spending allocations for 2024-25 and 2025-26. It is the responsibility of contracting authorities to prioritise these budgets effectively and make assessments on the costs of procurement.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to line 26 of Table 5.1 of the Autumn Budget 2024, published on 30 October 2024, HC 295, which public sector organisations will be funded to cover the additional costs of the changes to employers National Insurance Contributions; and how much funding will be provided to each of them in the next five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
The Government plans to update Parliament on allocations by department in the usual way as soon as possible.
Asked by: Priti Patel (Conservative - Witham)
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, what the Resource DEL provided to each Department in respect of the impact of the changes to employers National Insurance Contributions will be.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
The Government plans to update Parliament on allocations by department in the usual way as soon as possible.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue raised as a result of the OECD Pillar 2 measures in each of the next five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK’s implementation of the Multinational Top-up Tax and Domestic Top-up Tax was scored at Autumn Statement 2022, and updated Spring Budget 2023 in ‘table 4.2’. This can be found on gov.uk at https://www.gov.uk/government/publications/spring-budget-2023.
The UK’s implementation of the Undertaxed Profits Rule was scored at Autumn Statement 2023, and updated at Autumn Budget 2024 in ‘table 5.2’. This can be found on gov.uk at https://www.gov.uk/government/publications/autumn-budget-2024.
Taken together, the latest estimate is that all three rules will raise more than £15bn over the upcoming scorecard period.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the OECD Pillar 2 measures on businesses.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Pillar 2 is a significant reform to international corporate tax rules that will impact large multinational enterprises headquartered around the globe.
Following the implementation of Pillar 2, the government is committed to considering opportunities for simplification or rationalisation of the UK’s rules for taxing cross-border activities.
A Tax Information and Impact note for the Multinational Top-up Tax and Domestic Minimum Tax was published in March 2023, and a Tax Information and Impact note on the Undertaxed Profits rule was published in October 2024. These notes include detail on expected business impact and can be accessed on gov.uk at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.40 of the Autumn Budget 2024, HC 295, published on 30 October 2024, whether she has made an estimate of (a) the number of (i) businesses and (ii) employers in (A) Witham constituency and (B) Essex that will be affected by the proposed increase in the rate of employer National Insurance Contributions (NIC) and (b) the amount of employer NIC revenue that will raised from those areas in each of the next five years as a result.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Estimates of the number of businesses nor revenue raised from businesses in Witham and Essex from changes to Employer NICs announced at Autumn Budget 2024 are not available.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing fuel duty by between one and 25 pence per litre by each one penny increment on (a) revenues to the Exchequer, (b) costs to businesses and (c) household finances.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Fuel duty applies to petrol, diesel and other fuels for road and non-road uses, such as construction. The Government carefully considers the impact of fuel duty on households and businesses, with decisions on rates made at fiscal events.
Full forecasts for fuel duty revenue, certified by the Office for Budget Responsibility (OBR), will be published at Budget on 30 October.
HMRC regularly publish statistics relating to the direct effects of illustrative tax changes, including fuel duty. The most recent version of this publication can be found on GOV.UK:
https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling assumptions her Department has made of revenue to the Exchequer arising from fuel duty in each of the next five financial years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Fuel duty applies to petrol, diesel and other fuels for road and non-road uses, such as construction. The Government carefully considers the impact of fuel duty on households and businesses, with decisions on rates made at fiscal events.
Full forecasts for fuel duty revenue, certified by the Office for Budget Responsibility (OBR), will be published at Budget on 30 October.
HMRC regularly publish statistics relating to the direct effects of illustrative tax changes, including fuel duty. The most recent version of this publication can be found on GOV.UK:
https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what modelling assumptions her Department has made of the rate of fuel duty in each of the next five financial years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Fuel duty applies to petrol, diesel and other fuels for road and non-road uses, such as construction. The Government carefully considers the impact of fuel duty on households and businesses, with decisions on rates made at fiscal events.
Full forecasts for fuel duty revenue, certified by the Office for Budget Responsibility (OBR), will be published at Budget on 30 October.
HMRC regularly publish statistics relating to the direct effects of illustrative tax changes, including fuel duty. The most recent version of this publication can be found on GOV.UK:
https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential (a) merits of extending First Time Buyers’ Relief after March 2025 and (b) impact of not extending First Time Buyers’ Relief after March 2025 on first time buyers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The level at which purchasers of residential property start paying Stamp Duty Land Tax (SDLT) is currently £250,000, and this is due to revert to £125,000 on 1 April 2025. For first-time buyers, the nil-rate band is currently £425,000 and the purchase price limit for accessing the relief is currently £625,000. On 1 April 2025, these rates will revert to £300,000 and £500,000 respectively.
SDLT continues to be an important source of Government revenue, raising several billion pounds each year to help pay for the essential services the Government provides.
The Government keeps all taxes under review as part of the usual tax policy making process. Tax changes, including changes to SDLT, are announced at fiscal events, where decisions are taken in the round.