Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Spending Review 2025. published on 11 June 2025, what proportion of the of GDP announced for defence and security spending is to be spent on (a) defence and (b) security.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Prime Minister announced in February that total NATO qualifying defence spending will rise to 2.6% GDP by 2027. The NATO definitions pertain to defence spending; there is no definition of security spending.
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 merits of removing the requirement for armed forces personnel to pay (a) Income Tax and (b) Council Tax when deployed on overseas operations.
Answered by James Murray - Chief Secretary to the Treasury
Whilst there is no income tax exemption for the salaries of armed forces personnel serving overseas, there are a number of exemptions for specific payments or expenses including for UK accommodation, uniform laundering, and some travel expenses and professional fees.
The Ministry of Defence also pays a tax-free allowance called Council Tax Relief for certain Service personnel on specified operations or assignments.
This demonstrates the Government's commitment to the Armed Forces Covenant and supporting our vital Armed Forces personnel.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what intra-month assessment she has made of the performance of the National Wealth Fund since its launch.
Answered by James Murray - Chief Secretary to the Treasury
Formal assessment of the National Wealth Fund’s (NWF) performance occurs on an annual basis through assessment against their business plan. This will be published in the NWF’s annual report and accounts after the end of their first financial year.
The NWF reports monthly on financial returns, and HM Treasury attends quarterly shareholder meetings to ensure delivery is on target. The NWF also works with Government to agree key performance indicators that translate HMT’s strategic direction into performance targets.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government’s Plan for Change, when she plans to publish her Department's business tax roadmap.
Answered by James Murray - Chief Secretary to the Treasury
The Government published the Corporate Tax Roadmap at Autumn Budget 2024. This roadmap confirms the major features of the Corporation Tax regime for the duration of this Parliament including a commitment to cap the rate of Corporation Tax at 25% for the duration of parliament and to retain full expensing and the £1 million Annual Investment Allowance. The roadmap reflects the particular importance of Corporation Tax to significant business investment decisions.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what real household disposable income was on (a) 5 July 2024 and (b) 1 May 2025.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Office for National Statistics produces estimates for GDP per capita and Real Household Disposable Income (RHDI) per capita. These estimates are produced on a quarterly basis as part of the Quarterly National Accounts. Aggregate GDP is also estimated on a monthly basis but not in per-capita terms.
The nearest complete quarter to the 5th July is Q2 2024 (ending June 30).
According to the most recent ONS estimates for Q2 2024, in 2022 prices:
The nearest complete quarterly for 1 May 2025 is Q2 2025 (June 30). However, estimates of Q2 2025 GDP and RHDI per capita have not yet been released. These are due to be released respectively on 14th August and 30th September 2025.
The most recent quarter for which estimates are available, in 2022 prices:
The RHDI figures above refer to Households and non-profit institutions, as per the definition of living standards using the Programme for Change milestones.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what GDP per capita was on (a) 5 July 2024 and (b) 1 May 2025.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Office for National Statistics produces estimates for GDP per capita and Real Household Disposable Income (RHDI) per capita. These estimates are produced on a quarterly basis as part of the Quarterly National Accounts. Aggregate GDP is also estimated on a monthly basis but not in per-capita terms.
The nearest complete quarter to the 5th July is Q2 2024 (ending June 30).
According to the most recent ONS estimates for Q2 2024, in 2022 prices:
The nearest complete quarterly for 1 May 2025 is Q2 2025 (June 30). However, estimates of Q2 2025 GDP and RHDI per capita have not yet been released. These are due to be released respectively on 14th August and 30th September 2025.
The most recent quarter for which estimates are available, in 2022 prices:
The RHDI figures above refer to Households and non-profit institutions, as per the definition of living standards using the Programme for Change milestones.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she make it her policy to introduce a new business rates system before the 2026-27 financial year.
Answered by James Murray - Chief Secretary to the Treasury
Transforming the business rates system is a multi-year process, and reforms taken forward will be phased over the course of the Parliament to provide certainty for businesses and local government finance.
Through these reforms, we will create a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent progress she has made in implementing a new business rates regime.
Answered by James Murray - Chief Secretary to the Treasury
Autumn Budget the Government announced an intention to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, with rateable values below £500,000 from 2026-27.
This tax cut must be sustainably funded, and so we intend to apply a higher rate from 2026-27 on the most valuable properties - those with a rateable value of £500,000 and above. These represent less than one per cent of all properties, but include the majority of large distribution warehouses, including those used by online giants.
The Non-Domestic Rating (Multipliers and Private Schools) Act gained Royal Assent on 3 April, giving the Government powers to introduce new multipliers for retail, hospitality and leisure properties and high-value properties, and ending charitable rate relief for private schools.
At the Autumn Budget 2024 the Government published a Discussion Paper setting out priority areas for reform. This paper invited industry to help co-design a fairer business rates system that supports investment and is fit for the 21st century. Officials have conducted a number of roundtables with interested stakeholders, and I have similarly held roundtables and spoken to businesses directly to hear their views.
In summer, the Government will publish an interim report that sets out a clear direction of travel for the business rates system, with further policy detail to follow at Autumn Budget 2025.
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much money has been raised by the addition of VAT to school fees in the 2024-25 financial year.
Answered by James Murray - Chief Secretary to the Treasury
The Annex to the Government Response to the Technical Note, Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf, sets out the expected VAT revenue resulting from this measure and the costing methodology. The Government estimates that it will raise £460 million in 2024/25, rising to £1,725 million in 2029/30.
VAT revenue overall is recognised in the National Accounts on an accruals basis. As set out in the above Annex, the VAT liability in 2024/25 is time apportioned for the implementation date of 1 January 2025. The actual VAT liability reported on VAT returns for any month or quarter will depend on various factors, including the date when schools meet the requirement to register for VAT (if not already registered), and which of the staggered quarterly accounting periods apply to the business. VAT returns are generally due one month and seven days after the end of the accounting period.
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 (a) merits and (b) impact on the economy of using unclaimed digital assets to establish a bitcoin reserve fund.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
HM Treasury currently has no plans to establish a bitcoin reserve fund.
The UK’s official reserves comprise foreign currency assets (cash, bonds and notes), gold assets and International Monetary Fund (IMF) Special Drawing Rights (SDR), which are held in the Exchange Equalisation Account (EEA).
Bitcoin and other cryptoassets have been historically volatile relative to stable fiat currencies like the US dollar and commodities, such as gold. This volatility makes Bitcoin less suitable as a reserve asset for the UK.