Asked by: Ayoub Khan (Independent - Birmingham Perry Barr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential cumulative impact of (a) proposed changes to the Soft Drinks Industry Levy thresholds, (b) the extended producer responsibility scheme and (c) the Deposit Return Scheme on the financial sustainability of the soft drink industry.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Implementing the Collection and Packaging Reforms is a critical step in the transition to a circular economy that delivers sustainable growth and produces less waste, rubbish and litter.
The Government believes it is right that the costs of dealing with household packaging waste are moved away from taxpayers and onto the businesses that place packaging on the market.
The extended producer responsibility (pEPR) scheme is designed to incentivise businesses to redesign and use more sustainable packaging materials, resulting in lower pEPR fees.
An assessment of impacts – including economic impacts for businesses – has been conducted in relation to (i) the proposed changes to the Soft Drinks Industry Levy, (ii) the extended producer responsibility scheme and (iii) the Deposit Return Scheme. These impact assessments are available here:
https://www.gov.uk/government/consultations/strengthening-the-soft-drinks-industry-levy
https://www.legislation.gov.uk/uksi/2024/1332/impacts
https://www.legislation.gov.uk/ukia/2024/167/pdfs/ukia_20240167_en.pdf
If the Government decides to make changes to the Soft Drinks Industry levy, it will also publish a tax information and impact note (TIIN) to give account of the confirmed policy’s impacts.
Following the 'Strengthening the Soft Drinks Industry Levy' consultation, the government expects to confirm the final policy at Autumn Budget 2025'.
Asked by: Ayoub Khan (Independent - Birmingham Perry Barr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of economic inequality on (a) Gross Domestic Product and (b) GDP growth.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26.
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.
Asked by: Ayoub Khan (Independent - Birmingham Perry Barr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking with Cabinet colleagues, to help tackle child poverty in (a) Birmingham Perry Barr constituency and (b) the West Midlands.
Answered by Darren Jones - Minister for Intergovernmental Relations
Tackling child poverty is at the heart of this Government’s mission to break down barriers to opportunity. The Child Poverty Taskforce is developing the Government’s plan to bring about an enduring reduction in child poverty this Parliament, as part of a 10-year strategy for lasting change.
The Minister for Employment visited the West Midlands in January 2025 and heard from key local stakeholders about challenges facing the area and how they think poverty can be better tackled.
As a down payment on the child poverty strategy, the Government has already taken action at Autumn Budget 2024 which will benefit all constituencies. This action includes the Fair Repayment Rate which lowers the cap on deductions in Universal Credit to 15% of the standard allowance from April 2025. This will benefit 1.2m households by an average of £420 per year, including 700,000 of the poorest families with children benefiting as a result of this change. In addition, the Government will provide £1 billion (including Barnett impact) to extend the Household Support Fund in England and Discretionary Housing Payments in England and Wales in 2025-26. This will help individuals and families facing the greatest hardship, including supporting them with the cost of essentials such as food, energy and housing. This builds on the previous investment of £500 million (including Barnett impact) to extend the Household Support Fund to 31 March 2025.
Asked by: Ayoub Khan (Independent - Birmingham Perry Barr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to reduce wealth inequality in the UK.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to making sure everyone pays their fair share of tax, which helps to fund our vital public services.
The UK taxes wealth across many different economic activities, helping to ensure that the most well-off in our society make a fair contribution.
Asked by: Ayoub Khan (Independent - Birmingham Perry Barr)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department is taking steps to introduce a National Financial Inclusion strategy.
Answered by Tulip Siddiq
Ensuring all individuals have access to the appropriate financial services and products they need is a key priority for Government and is vital to supporting people’s financial resilience and wellbeing. It is also an essential part of achieving inclusive growth and ensuring individuals are able to fully participate in the economy.
The Government is currently taking steps to understand barriers to financial inclusion in more detail and I am committed to considering what more can be done.