Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with mortgage providers on the availability of fixed term mortgages to first time buyers.
Answered by Tulip Siddiq
The Government is regularly in contact with mortgage lenders on all aspects of their business, including the provision of finance to first time buyers.
This Government will turn the dream of owning a home into a reality by fixing the planning system and building 1.5 million more homes, as well as helping buyers who are struggling to save for a large deposit by introducing a permanent Mortgage Guarantee Scheme.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the proportion of the reduction in fuel duty made in 2022 that was passed on to consumers by petrol stations.
Answered by James Murray - Chief Secretary to the Treasury
Fuel duty rates were first reduced by 5p in March 2022 by the government at the time.
The Competition and Markets Authority’s Road Fuel Review into fuel prices, published on 8 July 2022, found that the 5p cut had largely been passed on to consumers.
At Autumn Budget 2024, the Government announced continued support for families and businesses, by extending the temporary 5p fuel duty cut for one year and cancelling the planned inflation increase for 2025-26. This maintains fuel duty rates at the levels set on 23 March 2022 for an additional 12 months and represents a saving of £59 for the average car driver in 2025-26.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will have discussions with Cabinet colleagues on the potential merits of increasing Barnett consequentials for dental services in Northern Ireland.
Answered by Darren Jones - Minister for Intergovernmental Relations
Funding for dental services in Northern Ireland is the responsibility of the Northern Ireland Executive. Barnett consequentials provided as a result of changes to UK Government department budgets are not ringfenced and it is for the Northern Ireland Executive to allocate their funding in devolved areas.
As part of the Interim Fiscal Framework for Northern Ireland, a 24% needs-based factor has been included in the Barnett formula for the Northern Ireland Executive to account for Northern Ireland’s greater level of relative need.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she plans to take to reform the tax status of people with non-domiciled residency.
Answered by James Murray - Chief Secretary to the Treasury
The government has published a policy note setting out its plan to remove the concept of domicile status from the tax system, and to implement a new residence-based regime which is internationally competitive and focused on attracting the best talent and investment to the UK. The details of this plan can be found on gov.uk at the link below:
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT from the sale of defibrillators; and if she will make an assessment with the Secretary of State for Health and Social Care of the potential impact of doing so on access to defibrillators.
Answered by James Murray - Chief Secretary to the Treasury
The Government currently provides VAT reliefs to aid the purchase of defibrillators. For example, when an AED is purchased with funds provided by a charity and then donated to an eligible body no VAT is charged.
VAT is the UK’s second largest tax forecast to raise £176 billion in 2024/25. Taxation is a vital source of revenue which helps to fund public services.
The Chancellor makes decisions on tax policy at fiscal events.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will have discussions with the Secretary of State for Education on the potential merits of increasing funding through the Barnett formula to assist schools in Northern Ireland with the cost of heating and electricity.
Answered by Laura Trott - Shadow Secretary of State for Education
In the 2024 Northern Ireland Executive restoration financial package worth over £3.3 billion, the UK Government has committed to implement a 24% needs-based factor into the Barnett formula for the Northern Ireland Executive from 2024-25 onwards.
Funding provided to the Northern Ireland Executive through the Barnett formula is not ringfenced. This provides the Executive with the flexibility to allocate resources in devolved areas as they see fit and assign funding in response to their priorities.
The UK Government has no plans to replace the Barnett Formula
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of restructuring the Barnett Formula for education.
Answered by Laura Trott - Shadow Secretary of State for Education
In the 2024 Northern Ireland Executive restoration financial package worth over £3.3 billion, the UK Government has committed to implement a 24% needs-based factor into the Barnett formula for the Northern Ireland Executive from 2024-25 onwards.
Funding provided to the Northern Ireland Executive through the Barnett formula is not ringfenced. This provides the Executive with the flexibility to allocate resources in devolved areas as they see fit and assign funding in response to their priorities.
The UK Government has no plans to replace the Barnett Formula
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made on the levels of household disposable income as a result of the potential impact of the OBR's forecasts on household income.
Answered by Bim Afolami
Since 2022, the government has demonstrated its commitment to households by providing one of the largest support packages in Europe. Support for households with the cost-of-living, from 2022-23 to 2023-24, totalled £96 billion – an average of £3400 per UK household.
Real Household Disposable Income (RHDI) per capita has outperformed OBR expectations. RHDI per capita grew by 1.3% in 2023, rather than falling by 3.2% as predicted in the OBR’s March 2023 forecast. This means that, in 2023, RHDI per capita was over £1,200 higher than the OBR expected in their March 2023 forecast, when using 2019 prices.
In the 2024 Spring Budget, the Chancellor announced a further 2 pence cut to the main rates of National Insurance Contributions. This adds to a boost of similar size from the National Insurance Contributions cut announced in the Autumn Statement 2023.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential implications for her policies on small businesses of trends in the number of bank closures in the last two years.
Answered by Bim Afolami
Decisions to open or close a branch or mobile banking service are commercial decisions for firms and the Government does not intervene. However, it is imperative that banks and building societies recognise the needs of all their customers, including those who need to use in-person services. Banks and building societies occupy a privileged position in society and are essential to enabling businesses to manage their money on a day-to-day basis.
Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches. Firms are expected to carefully consider the impact of planned closures on their customers’ everyday banking and cash access needs, and put in place alternatives, where this is reasonable.
Alternative options to access everyday banking services for small businesses can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office or Banking Hubs.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Bank of England on bank rates.
Answered by Bim Afolami
Monetary policy is the responsibility of the independent Monetary Policy Committee of the Bank of England. This includes decisions on the Bank Rate.
The Treasury meet with the Bank of England regularly to discuss their assessment of the economy and financial services. This includes regular meetings between the Chancellor and the Governor of the Bank of England.