Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of increases to Air Passenger Duty in (a) 2025 and (b) 2026 on passenger demand.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published Tax Impact and Information Notes (TIINs) assessing the impacts of the 2025/26 and 2026/27 Air Passenger Duty rates:
Air Passenger Duty: rates from 1 April 2025 to 31 March 2026 - GOV.UK
Air Passenger Duty: rates from 1 April 2026 to 31 March 2027 - GOV.UK
The OBR certified costing of the changes includes a behavioural effect to account for the change in flights taken resulting from the change in the tax rates.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Security of State for Energy Security and Net Zero on a response to the Climate Change Committee’s report on the Seventh Carbon Budget, published on 26 February 2025.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In line with the Climate Change Act 2008, the Government will respond to the Climate Change Committee’s Seventh Carbon Budget Advice and set the seventh carbon budget in law by 30 June 2026.
The Government will set out policies to support delivery of the seventh carbon budget as soon as reasonably practicable after this.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her Department’s policies of section 7.6 of the Climate Change Committee's Seventh Carbon Budget on aviation, published on 26 February 2025.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In line with the Climate Change Act 2008, the Government will respond to the Climate Change Committee’s Seventh Carbon Budget Advice and set the seventh carbon budget in law by 30 June 2026.
The Government will set out policies to support delivery of the seventh carbon budget as soon as reasonably practicable after this.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her letter to the CEO of the National Wealth Fund entitled Statement of Strategic Priorities to the National Wealth Fund, dated 19 March 2025, in what circumstances the National Wealth Fund should be receptive to investment suggestions made by Ministers in her Department.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The National Wealth Fund remains operationally independent in its day-to-day activities and its investment committees make investment decisions based on the merits of each opportunity. All investments should align with its objectives and investment principles.
As the sole shareholder, it is right that the National Wealth Fund should be responsive to Treasury ministers’ requests to consider investment proposals. In particular, it may consider investments in emerging government priorities that are facing access to finance gaps. However, final decisions will be subject to the National Wealth Fund’s operating framework and investment principles.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 February 2025 to Question 27493 on British Business Bank: National Wealth Fund and with reference to the press release entitled Boost for new National Wealth Fund to unlock private investment, published on 9 July 2024, for what reason the British Business Bank will no longer be aligned under National Wealth Fund with the UK Infrastructure Bank.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The National Wealth Fund (NWF) is at the forefront of investing public money and will work in close partnership with other public financial institutions, including the British Business Bank.
The UK’s public financial institutions each target specific market failures and finance gaps to drive growth. The Government is strengthening strategic coordination across these institutions, including by creating the Strategic Public Investment Forum.
This CEO-level forum will consider how to leverage the institutions’ different expertise to best support investment and collectively identifying opportunities for greater effectiveness and coherence in the landscape.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her letter to the CEO of the National Wealth Fund entitled Statement of Strategic Priorities to the National Wealth Fund, dated 19 March 2025, whether additional risk management employees will be hired as the National Wealth Fund takes on greater risk.
Answered by James Murray - Exchequer Secretary (HM Treasury)
As the National Wealth Fund delivers on its wider remit with an increased risk appetite, and its portfolio of investments grows, it will require more resources and expertise to manage the increasing number of projects effectively. The risk function is one of several front office teams that will need to expand to deliver on these objectives.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her oral answer to the question from the Rt hon. Member for Gainsborough on 21 January 2025, Official Report, col 859, how the Government plans to compensate hospices for the increase in Secondary Class 1 National Insurance Contributions.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the vital role hospices play in supporting people at the end of life and their families. The Government will provide support for departments and other public sector employers for additional employer National Insurance costs only. Private sector firms or charities including hospices or social care providers that are contracted by central or local Government will not be exempt from these changes. This is the usual approach the Government takes to supporting the public sector with additional employer National Insurance contributions as was the case with the previous Government’s Health and Social Care Levy.
The Government is determined to shift more healthcare into the community and ensure patients and their families receive high-quality, personalised care in the most appropriate setting, and hospices will have a big role to play in that shift.
Integrated Care Boards are responsible for the commissioning of palliative and end of life care services to meet the needs of their local populations; where ICBs provide funding, they will work with hospices to agree funding arrangements through the normal contracting process.
The Government has recently announced that we are supporting the hospice sector with a £100 million boost for adult and children’s hospices to ensure they have the best physical environment for care, and £26 million revenue to support children and young people’s hospices. We will set out the details of the funding allocation in due course.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Chief Secretary to the Treasury's oral contribution of 4 March 2025, Official Report, what is the process for approval by the National Wealth Fund of a proposed business case for investment; and who makes the final decision.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Wealth Fund considers business cases for investments on a case-by-case basis, supporting proposals that fall within the scope of its mandate and investment principles. An investment made by National Wealth Fund would need to have satisfied its investment principles and internal approval processes.
The National Wealth Fund has delegated authority to make investment decisions, subject to those investments meeting certain conditions agreed with HM Treasury.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Chief Secretary to the Treasury's oral contribution of 4 March 2025, Official Report, what her policy is on the operational independence of the National Wealth Fund.
Answered by Darren Jones - Chief Secretary to the Treasury
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.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Chief Secretary to the Treasury's oral contribution of 4 March 2025, Official Report, if she will publish the National Wealth Fund's business case to fund the £200 million investment in Grangemouth.
Answered by Darren Jones - Chief Secretary to the Treasury
The National Wealth Fund has made financing available for new investment projects in Grangemouth, subject to viable proposals coming forward. This financing will help unlock Grangemouth’s full potential and secure our clean energy future. Any investment made into Grangemouth by the National Wealth Fund would be subject to the investment satisfying the National Wealth Fund’s normal requirements for investable proposals.