Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of public sector pay awards agreed since July 2024 on expenditure over the Spending Review period.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the adequacy of the long term affordability of public sector pay settlements agreed outside the recommendations of independent pay review bodies.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on departmental budgetary flexibility in future financial years.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on forecast productivity growth in relevant sectors.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what analysis her Department has undertaken of the distributional impact of recent public sector pay awards across income deciles.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on trends in the level of public sector net borrowing in future financial years.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of taking fiscal steps to offset the potential impact of recent public sector pay agreements on the public finances.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent public sector pay settlements on the fiscal rules.
Answered by James Murray - Chief Secretary to the Treasury
No additional central funding has been given to Departments for the 2025/26 pay awards beyond their existing funding allocations, and this will be the case for the remainder of the Spending Review period. This means we will not be borrowing more or raising taxes to fund higher pay awards, nor will there be an impact on the fiscal rules.
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the new taxation of electric vehicles on reaching the UK's net zero targets.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government intends to create a fair tax system whilst ensuring that driving an electric vehicle (EV) remains an attractive choice for consumers; the transition to EVs is essential to meeting Net Zero targets.
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028. The rate of eVED for EVs will be half of the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that EVs are cheaper to own and run for the majority of EV drivers. The Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG) and increasing the VED Expensive Car Supplement (ECS) threshold to £50,000 for EVs.
As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.
The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf
Asked by: Sarah Pochin (Reform UK - Runcorn and Helsby)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the new taxation of electric vehicles on consumer uptake of electric vehicles.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government intends to create a fair tax system whilst ensuring that driving an electric vehicle (EV) remains an attractive choice for consumers; the transition to EVs is essential to meeting Net Zero targets.
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028. The rate of eVED for EVs will be half of the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that EVs are cheaper to own and run for the majority of EV drivers. The Government is also providing generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG) and increasing the VED Expensive Car Supplement (ECS) threshold to £50,000 for EVs.
As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.
The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf