Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Annex 2 of the Commission Delegated Regulation (EU) 2020/1816, whether Trident renewal is classified as a controversial weapon for the purposes of (a) environmental, social, and governance and (b) ethical investments.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks. The Financial Conduct Authority (FCA) monitor and supervise benchmark administrators according to the Benchmarks Regulation to ensure that benchmarks are produced robustly and with due transparency. The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025.
It is for benchmark administrators to decide if they wish to provide UK Climate Transition Benchmarks and UK Paris-aligned benchmarks under the Benchmarks Regulation, including by paying due regard to the relevant FCA guidance, and which companies to include in their benchmarks. It is then up to firms and investors to choose whether to use these benchmarks.
This Government does not see a conflict between sustainable investment and investment in our world-leading defence sector.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 March 202, to Question 33375 on Environment Protection: Finance, whether (a) UK Paris-aligned Benchmarks and (b) UK Climate Transition Benchmarks require investment in firms which support the renewal of Trident nuclear deterrent to be excluded.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks. The Financial Conduct Authority (FCA) monitor and supervise benchmark administrators according to the Benchmarks Regulation to ensure that benchmarks are produced robustly and with due transparency. The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025.
It is for benchmark administrators to decide if they wish to provide UK Climate Transition Benchmarks and UK Paris-aligned benchmarks under the Benchmarks Regulation, including by paying due regard to the relevant FCA guidance, and which companies to include in their benchmarks. It is then up to firms and investors to choose whether to use these benchmarks.
This Government does not see a conflict between sustainable investment and investment in our world-leading defence sector.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of her policy on tackling non-compliance in the umbrella company market on (a) freelancers and (b) temporary workers seeking to evidence a stable income for mortgage applications.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the level of pension contributions made by affected people.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.19 of the Autumn Budget 2024, whether she plans to provide additional funding for tackling non-compliant umbrella companies.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of her policy on tackling non-compliance in the umbrella company market on revenues to the Exchequer.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential implications for her policies of the report by the FCSA entitled Regulating the UK’s umbrella market - FCSA’s response to proposals in Budget 2024, published on 11 March 2025.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the number of joint employment models.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she made an assessment of the potential merits of undertaking an impact assessment of her policies on tackling non-compliance in the umbrella company market.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of her policies on tackling non-compliance in the umbrella company market on the labour supply chain.
Answered by James Murray - Chief Secretary to the Treasury
The Government recognises the positive role that compliant and well-managed umbrella companies can play in the functioning of the temporary labour market. However, non-compliance in the umbrella company market is widespread and costs taxpayers billions of pounds a year.
HMRC analysis shows that at least 275,000 workers, and likely significantly more, were engaged at some point in 2022 to 2023 by umbrella companies that were involved in tax avoidance, evasion or fraud. In the same year around £500 million was lost to disguised remuneration tax avoidance schemes, almost all of which was facilitated by umbrella companies. Hundreds of millions more was lost to so called ‘mini umbrella company’ fraud and other fraudulent attacks by people abusing umbrella company structures.
The Government is committed to closing the tax gap and making the tax system fairer by ensuring temporary workers are protected from large, unexpected tax bills caused by unscrupulous behaviour from non-compliant umbrella companies. That is why the Chancellor announced in her Autumn Budget that the Government will introduce legislation to make recruitment agencies using umbrella companies legally responsible for accounting for PAYE on workers’ pay.
The Government set out the expected Exchequer impacts of this measure at the Budget. The Government will publish a full Tax Impact and Information Note later this year.