Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to announce how her Department will move to a) 3.0% of GDP and b) 3.5% of GDP on defence spending.
Answered by James Murray - Chief Secretary to the Treasury
We are set to spend 2.6 percent of GDP on defence spending in 2027, with an ambition to spend 3 percent of GDP on defence next Parliament when economic and fiscal conditions allow.
The Government is also committed to hitting a headline ambition of 5 percent of GDP on national security spending by the Parliament after next. This is currently split into 1.5% on security and resilience-related spend, and 3.5% core defence spending.
This new NATO target is a decade away. We remain committed to plans announced at the Spending Review. In 2029, when NATO review capability requirements and this pledge, the UK and Allies will review the trajectory and the balance of spending between defence and wider national resilience.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 October 2025 to question 82442 on Alcoholic Drinks: Excise Duties, where evidence on the impact of the changes so far should be submitted to.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In March 2023, the previous government published its response to the new alcohol duty system consultation which ran from October 2021 to January 2022. Within that response was a commitment to evaluate the impacts of the new rates and structures three years after the changes take effect on 1 August 2023.
The previous government’s response can be found here: The new alcohol duty system: final consultation response
HMRC and HM Treasury began to monitor the impacts of the new rates and structure before the changes were introduced on 1 August 2023. The timeframes committed to should be an appropriate amount of time to gather useful and accurate data that could be used to understand the impacts in the alcohol market.
Plans are being formulated within HMRC for discussions with business via their trade associations as part of the evaluation work. In the meantime, the government always welcomes written feedback direct from parliamentarians and their constituents.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 October 2025 to question 82442 on Alcoholic Drinks: Excise Duties, when HMRC will begin the evaluation of the new rates and structures.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In March 2023, the previous government published its response to the new alcohol duty system consultation which ran from October 2021 to January 2022. Within that response was a commitment to evaluate the impacts of the new rates and structures three years after the changes take effect on 1 August 2023.
The previous government’s response can be found here: The new alcohol duty system: final consultation response
HMRC and HM Treasury began to monitor the impacts of the new rates and structure before the changes were introduced on 1 August 2023. The timeframes committed to should be an appropriate amount of time to gather useful and accurate data that could be used to understand the impacts in the alcohol market.
Plans are being formulated within HMRC for discussions with business via their trade associations as part of the evaluation work. In the meantime, the government always welcomes written feedback direct from parliamentarians and their constituents.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of implementing a pay-per-mile charge for electric vehicles on their drivers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government keeps the tax system under review, with changes announced at fiscal events and careful consideration given to the impacts of any changes.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing the ABV limit of 8.5% from Small Producer Relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
I refer the Hon. Member the answer that I gave to PQ UIN 82442 on 21 October 2025.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she has taken with the Minister for the Cabinet Office to help tackle the increase in whole-life costs associated with levels of delivery confidence in the Government's Major Projects Portfolio.
Answered by James Murray - Chief Secretary to the Treasury
The government recently created the National Infrastructure and Service Transformation Authority (NISTA) which will have an important role in supporting and monitoring major projects in the Government’s Major Projects Portfolio (GMPP).
NISTA provides expert advice and independent assurance on the GMPP and conducts regular deliverability assessments of major projects. Those assessments are published each year, most recently on 11 August 2025.
The increase in whole life cost of the GMPP portfolio reflects several new large high-cost projects joining and smaller projects successfully leaving the GMPP over the last year. By nature, GMPP projects and programmes are the longest, most complex and highest-cost projects, and therefore will inevitably experience challenges and hurdles. By being on the GMPP, these projects receive bespoke support, guidance and oversight which helps to set them on a path to success.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of removing the ABV limit of 8.5% from Small Producer Relief on businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Following public consultation, a new strength-based duty structure for alcohol products was introduced in August 2023.
As part of these reforms, Small Producer Relief (SPR) replaced and extended the previous Small Brewers Relief. SPR supports SMEs and new entrants by permitting smaller producers who make 4,500 hectolitres or less of alcohol per year to pay reduced duty rates on all products below 8.5 per cent ABV.
The design of SPR balances the needs of businesses against the Government’s public health objectives. The 8.5% ABV limit aligns with the duty thresholds set within the wider duty system and ensures that the Government does not provide a lower rate of duty on higher strength alcohol products, even if they are produced by small producers.
This issue was considered in detail as part of the Alcohol Duty Review consultation, the response to which is available here:
https://www.gov.uk/government/consultations/the-new-alcohol-duty-system-consultation
HMRC plans to evaluate the new rates and structures three years after the changes took effect on 1 August 2023. This will allow time for HMRC to gather a broad range of data. The Government welcomes evidence on the impact of the changes so far.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the UK’s Modern Industrial Strategy, CP 1337, published on 23 June 2025, what progress she has made on channelling pensions capital into the UK to support IS-8 sectors.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Pension Schemes Bill was introduced on 5 June and will implement the reforms outlined in the first phase of the landmark Pensions Review,
The Bill sets out a vision for a pensions market with fewer, larger schemes which can use the benefits of scale to invest in productive assets – including investing in the eight sectors identified in the Industrial Strategy – as well as deliver better outcomes for savers.
These reforms support the Mansion House Accord, an industry-led pledge to invest at least 10 per cent of defined contribution default funds into private markets by 2030, of which at least half is in the UK.
Furthermore, last year the British Business Bank announced the establishment of the British Growth Partnership, designed to crowd in investment from UK pension funds for our most innovative, fastest-growing companies.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the UK’s Modern Industrial Strategy, CP 1337, published on 23 June 2025, what progress she has made on expanding the mandate of the National Wealth Fund to support growth.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
On 19 March the Chancellor published a Statement of Strategic Priorities, directing the National Wealth Fund to support growth and the delivery of the wider Industrial Strategy, including in defense, life sciences, and creative industries. This includes prioritising specific growth-driving sectors, investing in city regions and high potential clusters, and crowding-in private capital for vital projects that would otherwise not have taken place.
The National Wealth Fund has made significant progress towards achieving its mandate to support growth. Since July 2024, the National Wealth Fund has invested approximately £3.77bn, which has unlocked £5.4bn in private investment and created 12,000 jobs across the UK.
To enable the National Wealth Fund to deliver on its growth objective, the National Wealth Fund has deepened engagement with Mayoral Strategic Authorities and City Region Joint Committees, including establishing Strategic Partnerships with West Midlands, West Yorkshire, Greater Manchester, and Glasgow City Region.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to page 42 of the Defence Industrial Strategy: Making Defence an Engine for Growth, published on 8 September 2025, CP 1388, if she will make an assessment of the potential merits of using the National Wealth Fund to provide funding for dual-use graphene technology created by Paragraf in Huntingdon constituency.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The National Wealth Fund invests in capital intensive projects, businesses, and assets by offering financing in the form of debt, equity and guarantees.
The Government published the National Wealth Fund’s Statement of Strategic Priorities on 19 March which directed the National Wealth Fund to consider investments in dual-use technologies across its priority sectors of clean energy, digital and technologies, advanced manufacturing, and transport to better support the UK’s defence and security.
The National Wealth Fund is operationally independent and has delegated authority to make investment decisions, subject to those investments meeting certain conditions agreed with HM Treasury. An investment made by the National Wealth Fund would need to have satisfied its investment principles and internal approval processes.