Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what Barnett Consequential have been calculated for the Northern Ireland Executive following the recent announcement of additional rates support for (a) retail, (b) hospitality and (c) leisure in the Autumn Budget 2024.
Answered by Darren Jones
As a result of decisions taken at the Autumn Budget, the Northern Ireland Executive (NIE) is receiving £18.2 billion in 2025-26, including an additional £1.5 billion Barnett consequentials.
The NIE’s settlement for 2025-26 delivers a real-terms increase and is the largest in real terms of any settlement since devolution. The NIE is funded above its independently assessed relative level of need of 124% in both 2024-25 and 2025-26, including the 2024 restoration financial package.
The Block Grant Transparency publication, which sets out changes to devolved government funding in detail, will shortly be updated with changes made at Autumn Budget 2024. The most recent document was published in July 2023:
https://www.gov.uk/government/publications/block-grant-transparency-july-2023
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will release funding to enable payment for the Pay Review Body recommendation for a 5.5% pay uplift for health workers in Northern Ireland.
Answered by Darren Jones
The Northern Ireland Executive (NIE) is being funded above its independently assessed relative need level of 124% in 2024-25 and 2025-26, including the 2024 restoration financial package. As a result of decisions taken at the Autumn Budget and Phase 1 of the Spending Review, the Northern Ireland Executive is receiving £18.2 billion in 2025-26. This represents the largest real-terms settlement since devolution.
The NIE is responsible for deciding how to allocate their funding across their devolved responsibilities, including the provision of pay awards for health workers.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made a comparative assessment of (a) boarding departments in state schools in England and (b) grant aided schools in Northern Ireland, in the context of the introduction of VAT on independent schools.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
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.
Boarding at state schools is provided to parents at cost and is closely related to the supply of state education. The government therefore believes it is right that state boarding should continue to be exempt.
To ensure consistency in the VAT treatment of schools across the UK, as set out in the draft legislation published in July, where a school charges for the full-time education of children of compulsory school age and/or full-time education suitable for the requirements of 16-19 year olds, it will be within scope of this policy. All education, vocational training and boarding services provided by schools within scope of this policy will be subject to 20% VAT from January 2025. This is in line with the principles set out in the technical note published in July. The draft legislation and technical note can be found online here:
HM Treasury have been engaging closely with the Northern Ireland Executive to understand how different schools in Northern Ireland will be impacted by this policy.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many applications for funding from the UK Infrastructure Bank for schemes in Northern Ireland were (a) awarded and (b) rejected.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The National Wealth Fund (NWF), formerly the UK Infrastructure Bank, has committed funding to three transactions that have benefited Northern Ireland (NI) with a total of £71m invested to date. Two of these deals are debt investments in the digital sector, supporting Fibrus and Netomnia, and the other is a guarantee deal for retrofitting social housing with Barclays.
Due to commercial confidentiality, the NWF does not disclose details of deals that were not completed. However, it has a robust process in place to assess the suitability of deal enquires in line with its strategy.
Further details on how NWF assess deals and additionality can be found in their Strategic Plan, and details on deals signed can be found in their Factsheets.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to include support for home owners struggling with mortgage commitments in the Budget.
Answered by Tulip Siddiq
This Government recognises that many households have been faced with higher mortgage rates in recent years. That is why we are committed to delivering economic stability to grow the economy and keep taxes, inflation and mortgage rates as low as possible.
The pricing of mortgages is a commercial decision for lenders in which the Government does not intervene. However, there are significant measures in place to protect vulnerable mortgage borrowers. Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments, and the Mortgage Charter also remains in place providing additional flexibilities to help customers manage their mortgage payments over a short period.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with regulators on ensuring that the insurance industry treats consumers equally in all regions.
Answered by Tulip Siddiq
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors on an ongoing basis.
The Government is determined that insurers should treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules.
The FCA is an independent body responsible for regulating and supervising the financial services industry across the United Kingdom and has robust powers to act against firms that fail to comply with its rules.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review Insurance Premium Tax for car insurance.
Answered by Tulip Siddiq
IPT is a tax on general insurance premiums currently charged at two rates: a standard rate at 12%, including car insurance, and a higher rate at 20%.
The Chancellor makes decisions on tax policy at fiscal events.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of establishing a (a) public banking ecosystem and (b) regional development bank in Northern Ireland.
Answered by Tulip Siddiq
There are no current plans for a regional development bank in Northern Ireland, however we look forward to working closely with the Northern Ireland Executive on our mission to deliver growth across the United Kingdom.
The Chancellor last week announced new plans to align key institutions under the National Wealth Fund that will boost growth and unlock investment. The National Wealth Fund will operate across the United Kingdom and Northern Ireland, and create a step change in our ability to mobilise private capital in the UK’s most important sectors and assets, supporting thousands of jobs across the country, and playing a central role in the government’s industrial strategy.
To ensure investments can start immediately, the National Wealth Fund will deploy funding through the UK Infrastructure Bank and draw on the capability of the British Business Bank, expanding its remit and providing an additional £7.3 billion to catalyse private investment at an even greater scale. Since inception, UKIB has successfully delivered many projects, for example, providing investment to support thousands of rural homes to access ultrafast broadband. The National Wealth Fund will continue to build on this excellent work.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answers of 17 April 2024 to Question 21426 and 24 April 2024 to Question 22418 on Childcare: Taxation, if he will make a (a) comparative assessment of the average cost of childcare (i) when the tax-free childcare cap was set and (ii) at 24 April 2024 and (b) impact of that change on the effectiveness of tax-free childcare in supporting parents with costs.
Answered by Laura Trott - Shadow Secretary of State for Education
For Tax-Free Childcare, the £2 Government top-up for every £8 parents pay in, and the £2,000 cap on Government support which can be claimed per year and per child, were set at these levels because the Government believes they strike the right balance between helping parents with their childcare costs, and managing the public finances in a responsible way.
The Government keeps all aspects of childcare policy under review.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South and Mid Down)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his planned timetable is for agreeing a new fiscal framework for Northern Ireland.
Answered by Laura Trott - Shadow Secretary of State for Education
As committed to in the financial package for the restored Northern Ireland Executive, the UK Government will agree a Fiscal Framework with the Northern Ireland Executive which will outline Northern Ireland’s long-term funding arrangements.
Since the restoration of the Northern Ireland Executive, constructive engagement on the Executive’s Fiscal Framework has taken place between HM Treasury and the Northern Ireland Department of Finance officials, and between myself and the Northern Ireland Finance Minister. My officials and I will continue this regular engagement to progress these negotiations at pace.