Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why the reporting of the value of frozen assets from Daesh was stopped; and whether they plan to resume that reporting.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, has released the value of frozen funds from its Annual Frozen Asset Review exercise in each OFSI Annual Review since 2017.
OFSI published in its 2024-2025 Annual Review that £19.3 million in assets across multiple sanctions regimes have been reported as frozen as of September 2024.
This is an aggregated total of all entities and individuals listed on the Consolidated List of Financial Sanctions Targets under non specified regimes including the ISIL (Da’esh) and Al-Qaida regime.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether fiscal rules or defence priorities determined that more than 90 per cent of the expenditure transferred to defence from overseas development assistance is allocated to capital expenditure; and how this allocation correlates to the 35 per cent of defence expenditure currently allocated to capital spending.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Chancellor’s Spring Statement document, published on 26 March, set out the Resource DEL and Capital DEL uplifts to defence spending over the scorecard period.
A greater proportion of the uplift will be Capital DEL funding. This reflects the needs of defence, and will enable the accelerated adoption of cutting-edge capabilities, and rebuild stockpiles, munitions, and other essentials depleted after a period focussed on international terrorism and global crises. This Capital DEL focus also supports the Chancellor’s mission to boost growth, enabling greater spending on novel and innovative technologies.
The allocation of this uplift and the MOD budget will be confirmed as part of the Spending Review 2025, which will conclude on 11 June 2025.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much of the funds transferred from overseas development assistance expenditure to defence may be used by the armed forces on revenue expenditure rather than capital expenditure, in (1) real terms, and (2) as a percentage; and whether this was discussed with Service Chiefs in advance.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Prime Minister announced on 25 February 2025 that NATO qualifying defence spending would increase to 2.5% GDP in 2027-28. This would be fully funded by a reduction in ODA spending from 0.5% to 0.3% GNI.
The Spring Statement document, published on 26 March, set out the Resource DEL and Capital DEL uplifts to defence spending over the scorecard period.
The proportion of this uplift that will be allocated to the MOD budget is to be determined as part of the Spending Review 2025, which will conclude on 11 June 2025.
The Defence Secretary will continue to work with the Service Chiefs in the usual way.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the reduction, expressed in pounds sterling, of the proposed cuts to the development budget; and by what amount, expressed as a penny in the pound increase, would the basic rate of income tax have to be raised to fund a deferment of these cuts for 2025–2026 while still funding the increase to the defence budget.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The UK will step up to safeguard collective security on an enduring basis by increasing defence investment to 2.5% of GDP by 2027. Our increase in defence spending will be funded by reducing Official Development Assistance (ODA) from 0.5% to 0.3% of GNI. Precise allocations will be determined as part of the Spending Review process. The government has committed to not increase taxes on working people, which means it will not increase their income tax, National Insurance Contributions, or VAT.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what are the current levels of (1) personal, (2) national, debt in the United Kingdom.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government regularly engages with the Bank of England, the Financial Conduct Authority (FCA) and the Money and Pensions Service (MaPS) to monitor personal finances and debt levels. According to the Bank of England’s Financial Policy Committee in its November 2024 Financial Stability Report, household debt as a share of income fell to 130% in Q2 2024 from 132% at the end of 2023, and borrowers slightly increased their aggregate savings buffers in 2024 making them more resilient to potential economic shocks. The Money and Pensions Service conducts an annual survey of people in financial difficulty in the UK. The results of their latest survey were published on 29 February 2024.
As of December 2024, Public Sector Net Debt (PSND) was 97.2% of GDP. Net financial debt (PSNFL), the measure targeted by the Government’s fiscal rule, was 84.5%.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of their duties under the UN Convention on the Rights of the Child in relation to the imposition of VAT on independent schools, including those catering for the needs of children with special educational needs.
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 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.
The Government gives due consideration to the UN Convention on the Rights of the Child (UNCRC) articles when making new policy. State education is accessible to all children, regardless of their financial status and all children of compulsory school age are entitled to a state-funded school place if they need one. Education matters and is at the heart of our mission to break down barriers to opportunity so every child gets the best start in life.
The Government is also committed to ensuring that all children’s needs are met. This Government’s ambition is that all children and young people with Special Educational Needs and Disabilities (SEND), with an Education, Health and Care Plan (EHCP) or not, receive the right support to succeed in their education and as they move into adult life. We are committed to improving inclusivity and expertise in mainstream schools, as well as ensuring special schools cater to those with the most complex needs.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the compatibility of their policy on charging VAT on independent schools with the European Convention on Human Rights (ECHR), and in particular with (1) Article 2 of the First Protocol, and (2) Article 14 of the ECHR.
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 private 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.
The Government has considered the policy’s interaction with Human Rights law, and is confident that it is compatible with the UK’s obligations under the Human Rights Act.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they will allow British National (Overseas) visa holders to voluntarily pay up to 15 years' worth of Class 3 national insurance contributions towards a state pension, in cases where such visa holders have been denied access to their Mandatory Provident Fund pension savings by HSBC.
Answered by Baroness Vere of Norbiton
British National Overseas individuals who live or work abroad (or have previously) are usually able to make backdated voluntary National Insurance contributions payments for the previous six tax years where they have either previously lived in the UK for three years in a row or paid at least three years of contributions.
For the tax years 2016 to 2017 and 2017 to 2018 the government has extended the deadline for paying voluntary contributions to 5 April 2025.
The deadline has also been extended to 5 April 2025 for eligible customers to pay voluntary contributions for the tax years 6 April 2006 to 5 April 2016. Further guidance on the eligibility and deadlines for making voluntary contributions, including for those living or working abroad is published online at https://www.gov.uk/voluntary-national-insurance-contributions(opens in a new tab).
The Government keeps all taxes under review.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following reporting that Shein is considering listing on the London Stock Exchange, what steps they are taking to ensure that such listings do not violate the UK’s commitments to uphold the UN Guiding Principles on Business and Human Rights and International Labour Organization Conventions.
Answered by Baroness Vere of Norbiton
The Government does not comment on individual companies. Furthermore, a decision to apply for a listing is for an individual firm to make. It is then for the independent regulator, the Financial Conduct Authority, to decide whether a firm meets the requirements of the UK listings rules.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they are taking steps through the Financial Action Task Force against Russia for violating sanctions on North Korea.
Answered by Baroness Vere of Norbiton
On 23 February, the Financial Action Task Force (FATF) expressed its concern about the growing financial connectivity of Russia with countries subject to countermeasures, namely North Korea and Iran, and the potential risks of proliferation financing, malicious cyber activities and ransomware attacks.
The UK’s recent joint statement (12 January 2024) is clear that Russia’s procurement of North Korean ballistic missiles and their use against Ukraine violate multiple UNSCRs. Actively facilitating the circumvention of UNSCR 1718 and violating its prohibitions undermines the global fight against proliferation, the UN sanctions regime, and consequently the financial sanctions requirements of the FATF standards. The UK will continue to call out Russia’s violation of UNSCRs both at the UN and within the FATF.