Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the recent survey conducted by Boston Consulting Group, what steps they are taking to address the chief concerns identified by businesses, such as (1) high energy prices, and (2) taxation.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government is backing British business, pursuing an ambitious policy agenda to boost growth and productivity. The OBR expects that policies announced at Spring Budget 2024 and in the previous two fiscal events will increase the size of the economy by 0.7% by 2028-29. This is through increasing total hours worked by the equivalent of more than 300,000 full-time workers and boosting business investment by £14 billion.
The Government provided an unprecedented package of support for businesses with energy costs through the Energy Bill Relief Scheme (EBRS) and the Energy Bill Discount Scheme. Together these schemes have provided around £7.5 billion to businesses for energy costs. In addition, the British Industry Supercharger, announced in February 2023, will significantly reduce electricity costs for key energy intensive industries such as steel, mining, batteries, and critical minerals.
On taxation, at Autumn Statement 2023 the Government made full expensing permanent, representing a tax cut to companies of over £10bn a year, and ensuring the UK has one of the most generous capital allowances regimes in the world. The Government also abolished the obligation to pay Class 2 self-employed NICs. Both announcements demonstrate the Government’s ongoing commitment to tax simplification.
In addition, the Government recognises that accounting for VAT can be a burden on small businesses. This is why we announced at Spring Budget 2024 that the VAT threshold will be raised from £85,000 to £90,000 from 1 April 2024. At £90,000, the UK has a higher VAT registration threshold than any EU Member State and the joint highest in the OECD. This keeps the majority UK businesses out of VAT altogether.
Asked by: Christian Wakeford (Labour - Bury South)
Question to the Department for Education:
To ask the Secretary of State for Education, what fiscal steps she is taking to support (a) training programmes, (b) apprenticeships and (c) other efforts to promote (i) job creation and (ii) skills development in Bury South constituency.
Answered by Robert Halfon
The government is committed to creating a world leading skills system which is employer-focused, high quality and fit for the future. The government’s reforms are strengthening higher education (HE) and further education (FE) to help more people get good jobs and upskill and retrain throughout their lives, as well as to improve national productivity and economic growth. The government’s reforms are backed with an additional investment of £3.8 billion over the course of this Parliament to strengthen HE and FE.
This additional funding will help providers such as those in Bury to deliver high quality education and training.
Bury College serves the Bury South constituency and received £25.3 million to deliver learning and skills training programmes in 2022/23 for 16 to18 year olds and apprentices for local employers. Bury College has also received capital investment of over £12 million since 2019.
Bury College offers a wide range of post-16 education and training from pre-entry level qualifications, A levels, T Levels, vocational courses at Levels 1 to 3, and apprenticeships in health and public services, business administration, engineering, retail and commercial enterprise, and education and training. It also has a University Centre and works in partnership with several local universities to deliver a range of HE courses at Higher National Diploma, Foundation Degree and Degree level to the local community. Bury College also receives funding for adult education programmes via Greater Manchester Combined Authority.
Bury College is a partner of the Greater Manchester Institute of Technology, led by The University of Salford, and has received £1.353 million of funding for refurbishments and specialist equipment in Heath Innovation, Science, Technology, Engineering and Mathematics, Enterprise and Sports provision. Bury College will account for 25% of all learners at the Institute of Technology. This equates to approximately 200 learners in 2023/24.
The area is also served by Holy Cross College, a Catholic sixth form college, which received £12.89 million to deliver learning programmes for 16 to18 year olds in 2022/23. It delivers a largely academic Level 3 programme and a small Level 2 cohort. Holy Cross College has a University Centre delivering HE both through a direct contract with Office for Students and in partnership with Liverpool Hope University.
The department is increasing investment in the apprenticeships system in England to £2.7 billion by 2024/25 to support employers of all sizes and in all areas of the country, including Bury South, to grow their businesses with the skilled apprentices they need. Since 2010, there have been 11,380 apprenticeship starts in Bury South.
The department has introduced the Free Courses for Jobs scheme which enables eligible adults to gain a qualification for free. Residents in Bury can access provision in a range of sector subject areas delivered through colleges and training providers in the area.
In addition, the department has also introduced Skills Bootcamps, which are free, flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills and fast track to an interview with an employer. In each of the 2023/24 and 2024/25 financial years, the department has allocated £7.5 million to Greater Manchester Combined Authority to deliver Skills Bootcamps in the Greater Manchester area, including in Bury South via grant funding.
T Levels will equip more young people with the skills, knowledge and experience to access skilled employment or further study. From September 2023, 18 T Levels will be available and will be delivered through nearly 300 providers across all regions of the country. Bury college is delivering T Levels in business administration, legal, financial, and accounting, education and childcare, and health and engineering in 2023/24. The college intends to introduce further T Levels in catering and hospitality, construction and the built environment, creative and digital, and hair and beauty in 2024/25.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of (1) current consumer spending, and (2) the declining inflation, on the economy.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Household consumption is the largest component of expenditure in the economy, accounting for around 60% of GDP. In Q3 2023, household consumption was 0.8% higher than in the same quarter of 2022, while consumer confidence reached a two-year high in January 2024. In the Office for Budget Responsibility’s (OBR) November 2023 forecast, consumption was forecast to grow by 0.5% in 2024.
Inflation has more than halved, but it remains a challenge. Inflation reduces real incomes, creates uncertainty, and threatens our growth outlook so it’s essential that the government continues with its efforts to drive it down and not fuel it further.
The OBR are the government’s official forecaster. They will update their economy forecast, including an assessment of changes in consumption and inflation, on 6 March.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will raise VAT thresholds for small businesses.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years.
In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.
While the Government keeps all taxes under review, it was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising VAT thresholds for small business.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years.
In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.
While the Government keeps all taxes under review, it was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of VAT thresholds on small businesses.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether. Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years.
In 2018, the Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.
While the Government keeps all taxes under review, it was announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.
Asked by: Tobias Ellwood (Conservative - Bournemouth East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of introducing a sliding scale of VAT rates for companies according to revenue.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether.
Views on the VAT registration threshold are divided and the case for change has been regularly reviewed over the years. The Government consulted on how the design of the VAT registration threshold could better incentivise growth. However, there was no clear option for reform.
The Government announced at Autumn Budget 2022 that the VAT threshold will be maintained at its current level of £85,000 until 31 March 2026.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, if she will review the effectiveness of governance structures of Multi-Academy Trusts (MAT) in ensuring adequacy of (a) accountability of MAT leadership and (b) avenues for resolving disagreement from school staff with decisions taken by the MAT leadership.
Answered by Damian Hinds - Minister of State (Education)
The department sets clear standards and expectations for the governance of multi-academy trusts (MATs) through requirements set by the Academy Trust Handbook, in model articles of association, funding agreements and through the guidance provided by the Governance Handbook. These documents are reviewed regularly to ensure they are up to date.
The department requires a high level of accountability and transparency from academy trusts. Academy trusts’ status as companies, charities and public sector bodies means that they are subject to rigorous accountability systems. Trustees must comply with the trust’s charitable objects, with company and charity law, and with their contractual obligations under the trust’s funding agreement with the Secretary of State. The academy trust board has collective accountability and responsibility for the governance of the MAT and in assuring itself that there is compliance with regulatory, contractual, and statutory requirements; this includes providing effective challenge and support to school leaders.
The department also published detailed trust quality descriptions as part of the ‘Commissioning high-quality trusts’ guidance in July 2023. These define what trusts are expected to deliver across five key pillars, of which governance and leadership is one. The guidance is the basis for commissioning decisions, including approving the growth of trusts.
The description of governance and leadership includes the expectation that the trust’s accounting officer, board and leadership team create a culture of ethical leadership, including the seven principles of public life; trust leadership should involve parents, schools, communities and, where appropriate, dioceses and other religious authorities so that decision making is supported by meaningful engagement.
The evidence annex sets out the information the department uses to assess trusts under each pillar. In the case of governance and leadership, qualitative evidence is used within a risk-based approach. Where it is determined that a detailed assessment of the trust’s governance and leadership is appropriate, the department will make a judgement based on the evidence held and/or that provided by the trust, in line with the published guidance.
Academy trusts have the freedom to establish their own procedures for staff. Trusts should have the freedom to make these decisions, as they are best placed to understand their local needs, but in doing so, they must take account of relevant legislation and guidance. Advice for boards about establishing these procedures is provided in the department’s guidance on managing staff employment in schools, which is available at: https://www.gov.uk/government/publications/staffing-and-employment-advice-for-schools.
Academy trusts must have a policy that details their procedures for addressing staff grievances. Governing boards should be mindful of their obligations under employment law and take into account the ACAS Code of Practice in their approach, which is accessible at: https://www.acas.org.uk/acas-code-of-practice-on-disciplinary-and-grievance-procedures. While this policy may be delegated to individual academies, the trust board remains accountable for all policies across its schools and they should ensure that members of their schools’ workforce are fully aware of the process by which they can seek redress as a result of any disagreement relating to their work at the school.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what steps she is taking to support arts and music organisations following the UK's departure from Creative Europe.
Answered by John Whittingdale
His Majesty’s Government recognises the great value of the UK’s world-leading creative sectors. The creative industries continue to thrive and are a key high-growth sector of our economy, as well as bringing great joy and wellbeing to people’s lives. The sector contributed £108 billion to the economy in 2021, accounting for 6% of UK GVA, and employed 2.3 million people – 7% of the total UK workforce – with employment growth increasing at almost five times the rate of the economy more widely since 2011.
Since leaving the EU, the UK is no longer part of the Creative Europe programme. The Government decided not to seek continued participation in the Creative Europe programme, but to look at other, more targeted ways of supporting the UK’s cultural and creative sectors.
The UK Shared Prosperity Fund delivers on a commitment to match EU funding across all four nations of the UK and gives local people control of how their money is spent, removing unnecessary bureaucracy and enabling them to invest in the cultural organisations that particularly matter to them.
Similarly, the £4.8bn Levelling Up Fund invests in local infrastructure projects which improve life for people across the UK, focusing on regeneration, local transport, and supporting cultural, creative and heritage assets. The second round of the Fund was announced in January 2023, and included more than £16 million for a new Production Village in Hartlepool, for instance, providing new jobs and opportunities in the creative industries and boosting the local economy.
Arts Council England supports the Four Nations International Fund, launched in 2021. This supports people working in the arts and creative industries across the UK, together with their counterparts in Europe and beyond.
This is in addition to support given through the Government's extension of the higher rates of theatre and orchestra tax relief for a further two years, as announced at the last Budget. This extension will continue to offset ongoing pressures and boost investment in our cultural sectors. Collectively, the two-year extension to the higher rates of theatre, orchestra and museums tax reliefs is estimated to be worth £350m over the five-year forecast period.
To support independent screen content – including film – to grow internationally, the Government launched the UK Global Screen Fund in April 2021 with initial funding of £7 million. We have committed a further £21 million to this Fund over the period 2022–25 to develop, distribute, and promote independent UK screen content in international markets.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Culture, Media and Sport, what assessment she has of the potential merits of the UK participating in Creative Europe.
Answered by John Whittingdale
His Majesty’s Government recognises the great value of the UK’s world-leading creative sectors. The creative industries continue to thrive and are a key high-growth sector of our economy, as well as bringing great joy and wellbeing to people’s lives. The sector contributed £108 billion to the economy in 2021, accounting for 6% of UK GVA, and employed 2.3 million people – 7% of the total UK workforce – with employment growth increasing at almost five times the rate of the economy more widely since 2011.
Since leaving the EU, the UK is no longer part of the Creative Europe programme. The Government decided not to seek continued participation in the Creative Europe programme, but to look at other, more targeted ways of supporting the UK’s cultural and creative sectors.
The UK Shared Prosperity Fund delivers on a commitment to match EU funding across all four nations of the UK and gives local people control of how their money is spent, removing unnecessary bureaucracy and enabling them to invest in the cultural organisations that particularly matter to them.
Similarly, the £4.8bn Levelling Up Fund invests in local infrastructure projects which improve life for people across the UK, focusing on regeneration, local transport, and supporting cultural, creative and heritage assets. The second round of the Fund was announced in January 2023, and included more than £16 million for a new Production Village in Hartlepool, for instance, providing new jobs and opportunities in the creative industries and boosting the local economy.
Arts Council England supports the Four Nations International Fund, launched in 2021. This supports people working in the arts and creative industries across the UK, together with their counterparts in Europe and beyond.
This is in addition to support given through the Government's extension of the higher rates of theatre and orchestra tax relief for a further two years, as announced at the last Budget. This extension will continue to offset ongoing pressures and boost investment in our cultural sectors. Collectively, the two-year extension to the higher rates of theatre, orchestra and museums tax reliefs is estimated to be worth £350m over the five-year forecast period.
To support independent screen content – including film – to grow internationally, the Government launched the UK Global Screen Fund in April 2021 with initial funding of £7 million. We have committed a further £21 million to this Fund over the period 2022–25 to develop, distribute, and promote independent UK screen content in international markets.