Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 January 2025 to Question 22929 on Treasury: Employers' Contributions, which Strategic Suppliers to the Department have contractual terms and conditions that require a pricing review as a consequence of the higher National Insurance contributions to employers.
Answered by James Murray - Chief Secretary to the Treasury
No such terms and conditions are included in HM Treasury’s contracts with strategic suppliers.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2025 to Question 21692 on Public Expenditure, over which financial years the (a) efficiencies and (b) savings target by 2029 relates to; whether the 5% target is for each year or over the whole spending review two period; and how the target interacts with the spending reductions announced at the (i) Fixing the Foundations statement in July 2024, (ii) Autumn Budget 2024 and (iii) phase one of the Spending Review.
Answered by Darren Jones - Minister for Intergovernmental Relations
To help drive out waste and ensure all funding is focused on the Government’s priorities, all departments are expected to find at least 5% savings and efficiencies from within existing budgets by the end of this SR period (2028/2029).
Any spending reduction announced at the (i) Fixing the Foundations statement in July 2024, (ii) Autumn Budget 2024 and (iii) phase one of the Spending Review that apply to the year 2025/2026 will be captured within the savings and efficiency target of 2% set across all government departments as part of phase one of the Spending Review.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of (a) 27 November 2024 to Question 14255 on Civil Service and (b) 27 November 2024 to Question 14946 on Government departments: communications and consultations, what the financial reduction in consultancy spending is in absolute terms required to deliver the policy of having spending on consultancy; and what the estimated baseline spending on government consultancy was in 2024-25 prior to the planned reduction of £550 million for 2024-25 and £680 million in 2025-26.
Answered by Darren Jones - Minister for Intergovernmental Relations
The baseline aggregate annual cash figure for the 24-25 savings target is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.
The baseline for the £680 million 25-26 saving is based on a 50% cut to the average figure that HMG spent on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database.
The government’s policy is to reduce consultancy spending by £550m in 2024-25 and to halve spending in 2025-26 against a baseline of average HMG spend on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database. This financial reduction in spending will deliver cash savings of £680m.
The estimated baseline spending on consultancy in 2024-25 prior to the planned reduction of £550m is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 November 2024 to Question 14946 on Government Departments: Communication and Consultants, what the baseline aggregate annual cash figure of government spending on consultancy was on which the estimated reductions in spending of (a) £550 million in 2024-25 and (b) £680 million in 2025-26 are based.
Answered by Darren Jones - Minister for Intergovernmental Relations
The baseline aggregate annual cash figure for the 24-25 savings target is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.
The baseline for the £680 million 25-26 saving is based on a 50% cut to the average figure that HMG spent on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database.
The government’s policy is to reduce consultancy spending by £550m in 2024-25 and to halve spending in 2025-26 against a baseline of average HMG spend on consultancy across the six financial years 2017/18 to 2022/23. This figure was calculated using HM Treasury estimates from spending figures published via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database. This financial reduction in spending will deliver cash savings of £680m.
The estimated baseline spending on consultancy in 2024-25 prior to the planned reduction of £550m is based on an in-year monthly forecast outturn figure from the government’s cross central financial management system. In-year forecast outturn figures at this level of detail are not released publicly due to their security classification and sensitivity.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 November 2024 to Question 14946 on Government Departments: Communication and Consultants, whether her Department holds data on the (a) Department and (b) programme reductions to consultancy spending that is expected to reduce spending by (i) £550 million in 2024-25 and (ii) £680 million in 2025-26.
Answered by Darren Jones - Minister for Intergovernmental Relations
Consultancy spending data for the current 24-25 financial year is held centrally on the cross-government financial system. In-year monthly forecast outturn data at this level of detail is not shared publicly due to its security classification and sensitivity.
Final outturn figures for consultancy spending are published annually via Department’s audited Annual Reports and Accounts (ARAs) and via the annual release of data from the Online System for Central Accounting and Reporting (OSCAR) database. Individual departments control their budgets for consultancy spending and determine the ways they will reduce it in line with the aggregate savings target. HM Treasury and Cabinet Office are holding them to account for these reductions.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many times the new Chair of the Office for Value for Money has formally met with (a) the Chancellor and (b) the Chief Secretary to the Treasury.
Answered by Darren Jones - Minister for Intergovernmental Relations
David Goldstone CBE was appointed as the independent Chair of the Office of Value for Money on 30 October 2024. His published terms of reference state that he will have monthly regular check-ins with the Chief Secretary to the Treasury, and that he will provide a regular update to the Chancellor of the Exchequer.
Since his appointment, the Chair has provided regular updates to the Chancellor and me on his progress. As part of this, the Chair has had three meetings with me; and one meeting with the Chancellor.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Spending Review Phase 2 is zero-based.
Answered by Darren Jones - Minister for Intergovernmental Relations
Phase 2 of the Spending Review launched on the 10th December 2024. At launch, I asked every department to conduct a zero-based review of government spending to assess whether it is a priority for this government and represents value for money. This is the first time that a line-by-line review of government spending has taken place in 17 years, offering the opportunity to undertake a more thorough review of spending.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 January 2025, to Question 21295 on Employers’ Contributions: Equality, whether a longer Impact Assessment or screening document was produced internally by her Department on the changes to National Insurance contributions that subsequently informed the content in the Tax Information and Impact Note.
Answered by James Murray - Chief Secretary to the Treasury
The Government carefully considers the impact of all decisions on those sharing protected characteristics in line with both our legal obligations and with our commitment to greater fairness and opportunity.
The Government is committed to meeting its obligation to the Public Sector Equality Duty (PSED) and Treasury ministers are confident the Government has met the obligation for the changes to National Insurance.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer; the economic impacts of the policy; and the impacts on individuals, businesses, civil society organisations and an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances.
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 January 2025 to Question 25682 on Motor vehicles: taxation, whether any impact assessment has been produced on changes to tax on double cab pick-up vehicles in the Autumn Budget 2024.
Answered by James Murray - Chief Secretary to the Treasury
The change in treatment for Double Cab Pick-ups (DCPUs) as announced at Autumn Budget 2024 was to align treatment with recent case law to treat them as cars, and not a change in policy requiring legislation. As mentioned in my answer of 28 January 2025, given this was not a policy change, it sits outside the Tax Consultation Framework. Under that framework, Tax Information and Impacting Notes (TIINs) are only published alongside legislation at fiscal events. More information on the Tax Consultation Framework can be found here: https://assets.publishing.service.gov.uk/media/5a79567ee5274a3864fd622b/tax-consultation-framework.pdf
Asked by: John Glen (Conservative - Salisbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much was claimed for trade union subscriptions under section 344 of the Income Tax (Earnings and Pensions) Act 2003 in each of the last five years.
Answered by James Murray - Chief Secretary to the Treasury
The requested information is not available. Claims for Professional Membership Fees and Annual Subscriptions, (under s343 and s344 ITEPA 2003) are reported on HMRC returns under the ‘Fees and Subscriptions’ category and cannot therefore be separately identified.