Asked by: Lord Browne of Ladyton (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the last Valuation Office Agency business rates revaluation on critical national infrastructure, including airports and power stations.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The last business rates revaluation, which came into effect in England and Wales on 1 April 2023, resulted in a fall in the total rateable values for each of the sectors shown below. Using the examples provided, the figures below demonstrate the overall change in total rateable value (RV) for civil airports and fossil fuel power stations, between the 2017 and 2023 rating lists.
Civil airports.
2017 RV: £392,425,000
2023 RV: £390,997,000
Fossil fuel power stations.
2017 RV: £164,653,000
2023 RV: £138,420,000
For transparency the VOA publishes official statistics for each property class, which show the change in RV. These can be found on the Non-domestic Rating Stock of Properties statistics pages for 2023 and 2024.
The VOA carried out a revaluation of around 2.1 million non-domestic properties in England and Wales to produce the 2023 rating list. The new RVs came into force on 1 April 2023, with the 2023 RV reflecting changes in rental values between 1 April 2015 and 31 March 2021.
The government is committed to a fairer business rates system. In our manifesto, we pledged to level the playing field between the high street and online giants, as well as to take steps to incentivise investment, tackle empty properties and support entrepreneurship.
Asked by: Lord Lingfield (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is their estimate of the number of approved independent schools for pupils with special educational needs or disabilities in respect of which they intend to impose VAT on fees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school, including independent special schools, in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
This change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where a Local Authority (LAs) funds a pupil’s place in a private school because their needs can only be met in a private school, LAs will be able to reclaim the VAT on the fees from HMRC. In Northern Ireland, it will be the Education Authority who fund placements in private schools and will be able to reclaim the VAT.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to review the level of state contributions to public sector pensions.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The rate of employer contributions paid to the main unfunded public service pension schemes is assessed as part of scheme valuations every four years. The most recent employer contribution rates were implemented in April 2024.
Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they still intend to introduce the British ISA.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government will provide further information on its plans for the British ISA in due course.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the remarks by Baroness Smith of Basildon on 4 September (HL Deb col 1157), and to the Written Answer by the Parliamentary Secretary to the Cabinet Office on 4 September (HC2317), whether the Chancellor of the Exchequer declared her political donation from Ian Corfield to the Treasury Permanent Secretary before he was appointed as a civil servant by exception; whether they considered recusal; and whether the Civil Service Commission was informed of the donation before they considered the request for an exception to the Recruitment Principles in this matter.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Ian Corfield was appointed on a short-term basis to carry out urgent work in support of the government’s International Investment Summit in October. A full recruitment process could not have been completed in the time available. The donation was included in the Chancellor's Register of Member's Interests. He has since been appointed, unpaid, as a direct ministerial appointment. The Civil Service Commission has published their letter to HM Treasury approving the appointment of Ian Corfield.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking at a retail level to tackle the illicit tobacco trade.
Answered by James Murray - Exchequer Secretary (HM Treasury)
HMRC works closely with local authorities to help tackle illicit tobacco trade at a retail level.
In January 2021 HMRC and National Trading Standards launched Operation CeCe. This joint initiative builds on decades of partnership working with local Trading Standards Officers.
HMRC funds Operation CeCe with the money being allocated by National Trading Standards to local authority Trading Standards. This supports them to undertake enforcement activity including the sharing of information and intelligence to target and seize illegal tobacco, disruption of the illicit tobacco market and prevention of fraud in their area.
In its first two years of operation more than 28 million cigarettes and nearly 8 tonnes of illicit hand rolling-tobacco were seized.
In July 2023 new powers were given to Trading Standards to make referrals to HM Revenue and Customs (HMRC) where they find evidence of tobacco products that do not comply with the UK Tobacco Track and Trace System.
In January 2024, HMRC published a new Illicit Tobacco Strategy ‘Stubbing out the problem’. The Strategy sets out how HMRC intends to build on the success of Operation CeCe by increasing the level of funding available to Trading Standards.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on the level of capital investment on the UK continental shelf in the period between 2025 and 2029.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by Offshore Energies UK entitled Impact of UKCS fiscal policy on UK economic growth, published on 2 September 2024, if she will make an assessment of the potential impact of (a) increasing the headline rate of the Energy Profits Levy to 78%, (b) extending the Energy Profits Levy for a year and (c) removing all allowances associated with the Energy Profits Levy on the total economic value of the sector in the period between 2025 and 2029.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In July, the government confirmed changes to the Energy Profits Levy (EPL), including extending the levy’s end date to March 2030, increasing it by three percentage points to 38%, removing the levy’s main 29% investment allowance, and reducing the generosity of capital allowances when calculating profits taxable by the EPL. The government will confirm further details of these changes at Budget on October 30, including the rate of the EPL’s decarbonisation investment allowance, which has been retained. We are currently consulting with the sector to finalise these changes and ensure a phased and responsible transition for the North Sea.
Money raised from these changes will support the transition to clean energy, increasing security and independence while providing sustainable jobs for the future and helping to protect electricity bills against future price shocks. Full costings certified by the Office for Budget Responsibility (OBR) will be published at Budget on October 30. Forecasts for investment in the sector will also be published by the OBR at this time, and will take into account policy decisions impacting the production of oil and gas across the UK and UK Continental Shelf.
Asked by: Tom Hayes (Labour - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the Rent a Room Scheme tax-free earnings threshold.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Rent a room relief provides an incentive for people to make spare rooms available for rent.
As with all aspects of the tax system, the Government will keep this under review.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Office for Value for Money will investigate value for money in (a) Equality, Diversity and Inclusion spending and (b) trade union facility time in the civil service.
Answered by Darren Jones - Chief Secretary to the Treasury
The Office for Value for Money (OVfM) has two primary roles. First, to provide targeted interventions, working with Treasury and departments, so that value for money governs every decision government makes. Second, to recommend system reforms to ensure any changes support the government’s missions and deliver value for money.
The OVfM is focussed on tackling wider systemic challenges that impact Government operations. Internal teams across departments already consider the value for money on respective policies and external interactions, using existing tools to consider their impact.