Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to page 45, clause 15, of the National Security Document 2025: Security for the British people in a dangerous world, if she will list (a) all government departments that will be included in the commitment to spend 2.6 percent of GDP on defence expenditure from 2027 and (b) the financial quantum in each case.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Security Strategy 2025 was published on 24 June 2025. It confirms that by combining an increase in funding with recognition of the vital contribution the Single Intelligence Account plays to our national defence, the UK will spend 2.6% on NATO qualifying defence spending from 2027.The inclusion of departmental spending that falls under NATO qualifying defence spending definitions will continue to be periodically reviewed in line with NATO guidance.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government press release entitled UK to deliver on 5% NATO pledge as Government drives greater security for working people, published on 23 June 2025, how much of the announced commitment to spend 1.5 percent of GDP on resilience and security represents new money.
Answered by Darren Jones - Chief Secretary to the Treasury
NATO provides reporting guidelines for the 1.5% defence and security related spending. It will include investments that raise the overall resilience of our societies, such as energy security, telecommunications, and infrastructure, as well as the execution of defence plans, expanding industrial capacity and innovation and counter hybrid actions.
Our National Security Strategy confirms our belief that these types of investment are vital to national security and we are pleased that this is now recognised by NATO. As set out in the Spending Review 2025, this government is making significant investment into these areas and we are confident we will meet the 1.5% target on defence and security related spending.
Along with all other NATO allies, the UK will report against the new categories of defence spending at the next NATO reporting deadline.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to page 45, clause 15, of the National Security Document 2025: Security for the British people in a dangerous world, whether the announced 2.6 percent of defence spending from 2027 will include any expenditure on resilience and security.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Security Strategy 2025 was published on 24 June 2025. It confirms that by combining an increase in funding with recognition of the vital contribution the Single Intelligence Account plays to our national defence, the UK will spend 2.6% on NATO qualifying defence spending from 2027. This 2.6% will be considered core defence spending.
Asked by: James Cartlidge (Conservative - South Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government press release entitled UK to deliver on 5% NATO pledge as Government drives greater security for working people, published on 23 June 2025, how much of the 4.1 percent of GDP spent in 2027 will be classified as core defence spending.
Answered by Darren Jones - Chief Secretary to the Treasury
This government is confident that it will spend at least 4.1% GDP on NATO qualifying defence and security related spend in 2027. This will comprise 2.6% core defence spend which we have already announced, and at least 1.5% on defence and security related spending.
Asked by: Bell Ribeiro-Addy (Labour - Clapham and Brixton Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with her Welsh counterpart on the universal basic income pilot scheme in that country.
Answered by Darren Jones - Chief Secretary to the Treasury
The Chancellor regularly meets with the Welsh First Minister. During their last engagement, the issue of universal basic income was not discussed.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the potential impact of the cost of living on households in Inverness, Skye and West Ross-shire constituency.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is taking a comprehensive approach in response to increasing costs: supporting those in immediate need while addressing the structural changes necessary to fix the country's foundations. The Plan for Change outlines key milestones, including raising living standards in every part of the United Kingdom to put more money back in people’s pockets. In the latest data, living standards (as measured by real household disposable income per capita) are already growing at their fastest quarterly rate in two years.
The Government has set out the next steps in delivering our approach for regional growth, spreading growth across the country through investment and reform. This will benefit people across the country, including in the Inverness, Skye and West Ross-shire constituency.
Asked by: Markus Campbell-Savours (Labour - Penrith and Solway)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of raising the VAT threshold for (a) wine merchants and (b) other small businesses; and what steps she is taking to (a) support those businesses and (b) promote economic growth while maintaining compliance with fiscal policies.
Answered by James Murray - Exchequer Secretary (HM Treasury)
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are kept out of the VAT system.
As set out in the Plan for Change, the Government’s priority mission is to deliver strong, secure and sustainable economic growth to boost living standards in every part of the UK. Supporting businesses to grow is at the heart of this mission. The Government will be announcing further support for small businesses as part of the Small Business Strategy being published later this year.
Asked by: Lord Wigley (Plaid Cymru - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much of the increased defence expenditure being invested in Scotland referred to by the Chancellor of the Exchequer in her spending review Statement on 11 June (HC Deb col 978) will be spent in Scotland in each of the next three financial years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The recently published Strategic Defence Review set out a new vision for defence. The Spending Review 2025 sees the Ministry of Defence (MOD) budget grow by £10.9bn in real terms from 2023-24 to 2028-29, allowing the Defence Secretary to start delivering on this new vision. The Defence Secretary will set out the detailed articulation of the new defence programme in the Defence Investment Plan later in the year which will include details of the programme and where we expect money to be spent, which will include programmes in Scotland. This includes an initial investment of £250 million over the next three years to begin the multi-decade multi-billion-pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.
Asked by: Andrew Ranger (Labour - Wrexham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing the rate of VAT for the hospitality sector.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2025/26, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
HMRC estimates that the cost of a 12.5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £6.5 billion this financial year, or £8 billion if it were to include alcoholic beverages.
Asked by: Louie French (Conservative - Old Bexley and Sidcup)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of Gift Aid claims have been rejected in each of the last five years.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The average processing times for Gift Aid claims over the last five tax years are below:
Tax Year | Average Working Days to Pay | ||
06/04/2024 | to | 05/04/2025 | 3.16 |
06/04/2023 | to | 05/04/2024 | 3.24 |
06/04/2022 | to | 05/04/2023 | 2.84 |
06/04/2021 | to | 05/04/2022 | 3.49 |
06/04/2020 | to | 05/04/2021 | 4.08 |
HMRC does not hold information centrally on what proportion of Gift Aid claims have been rejected in each of the last five years.