Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of taxation of the oil and gas sector on levels of future development in the North Sea.
Answered by James Murray - Chief Secretary to the Treasury
The Government is taking a responsible and proportionate approach to managing the taxation of the North Sea which recognises the ongoing role of the oil and gas industry and workforce in our current energy mix while ensuring the sector contributes more towards our energy transition. The Government engages regularly with industry stakeholders and monitors independent analysis, to assess the effects of taxation on investment and development activity in the basin.
The Government’s Building the North Sea’s Energy Future consultation sought to gather responses on the long term future of the North Sea. Britain is well-placed to mobilise its natural advantage, using the skills and expertise of our offshore workforce and supply chain to support the energy transition.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of the energy profits levy on government revenue.
Answered by James Murray - Chief Secretary to the Treasury
The Office for Budget Responsibility’s (OBR) forecast at Spring Statement 2025 estimated that revenues from the Energy Profits Levy (EPL) will be £10.8 billion between 2025-26 and 2029-30. This is in addition to more than £10 billion in tax revenues already raised through the EPL since its introduction.
A full breakdown of revenue projections for all North Sea oil and gas taxes is available in the OBR’s Economic and Fiscal Outlook, published at Spring Statement 2025 (https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/). Information on tax receipts already raised by the EPL is published and regularly updated by the Office for National Statistics (ONS) (https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/datasets/appendixdpublicsectorcurrentreceipts).
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the revenue which would be accrued from applying Duty Free allowances to people departing from Great Britain to the European Union.
Answered by James Murray - Chief Secretary to the Treasury
Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).
Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here:
https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of applying the duty-free allowance to people departing from Great Britain to the European Union.
Answered by James Murray - Chief Secretary to the Treasury
Allowances are generally not applied to outbound passengers. Instead, goods will be taxed upon arrival in the destination country (subject to any duty free allowances available in that country).
Inbound passengers to the UK are usually entitled to duty free allowances, which allow them to bring in goods up to certain limits without paying UK taxes, providing they are for personal use or to be gifted. Details of those allowances can be found here:
https://www.gov.uk/bringing-goods-into-uk-personal-use/arriving-in-Great-Britain
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of allowing duty free purchases to be made on landing in Great Britain.
Answered by James Murray - Chief Secretary to the Treasury
Current duty-free policy avoids large quantities of untaxed goods entering the UK market, while reducing operational burdens at the border and supporting wider health objectives.
The Government keeps all taxes under review as part of the policy making process.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the impact of changes to Agricultural Property Relief on Scottish farms.
Answered by James Murray - Chief Secretary to the Treasury
The Government published information about the reforms to agricultural property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR in 2026-27, with around half of those being claims that involve AIM shares. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the National Farmers Union of Scotland on changes to Agricultural Property Relief in the Autumn Budget 2024 since 30 October 2024.
Answered by James Murray - Chief Secretary to the Treasury
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
The Government takes into account all representations, and HM Treasury officials and Ministers meet with stakeholders on a regular basis.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Convention of Scottish Local Authorities on increases to Employers' National Insurance contributions in the Autumn Budget.
Answered by James Murray - Chief Secretary to the Treasury
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government.
Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government.
At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula.
Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution.
Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with Aberdeenshire Council on increases in Employers National Insurance contributions in the Autumn Budget.
Answered by James Murray - Chief Secretary to the Treasury
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis, including officials and ministers from the Scottish Government.
Funding for local authorities in Scotland, including support for additional employer National Insurance Contribution (NICs) costs falls under the devolved responsibilities of the Scottish Government.
At Autumn Budget 2024, we set aside funding for public sector employers for additional NICs costs. This includes funding for the Scottish Government through the usual application of the Barnett formula.
Funding resulting from the employer NICs policy change will be in addition to the £47.7 billion the Scottish Government is receiving in 2025-26, which already includes an additional £3.4 billion through the operation of the Barnett formula. This settlement is the largest in real terms since devolution.
Decisions on devolved priorities, including local authority funding, are a matter for the Scottish Government. It is for the Scottish Government to determine how to allocate its budget across devolved areas and it is accountable to Scottish Parliament for these decisions.
Asked by: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to convene the next Oil and Gas Fiscal Forum.
Answered by James Murray - Chief Secretary to the Treasury
The government is committed to maintaining an open and constructive dialogue with the oil and gas sector to support our energy security and ensure the sector plays its role in our clean energy ambitions.
In line with this I will chair the next Oil and Gas Fiscal Forum in the first quarter of this year.