Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential merits of increasing draught duty relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
This Government is proud to have been able to significantly expand the generosity of Draught Relief this parliament, in recognition of the economic and cultural importance of pubs, and the wider “on trade”.
In February 2025, the Chancellor delivered a duty cut on qualifying draught products – approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint and reduced overall duty receipts by £85m. Draught beer and cider now pay 13.9% less in tax than their packaged equivalents.
The Government keeps duty rates under review, and the Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the on trade sector on the effectiveness of Draught Relief in advance of the Budget.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what Barnett consequential funding the Welsh Government will receive from the Warm Homes Plan.
Answered by James Murray - Chief Secretary to the Treasury
The Barnett formula applies to all increases or decreases to Departmental Expenditure Limits (DEL).
The Barnett formula is not applied to the individual programmes driving the change in a UK department’s DEL budget, so the total Barnett consequentials associated with the Warm Homes Plan cannot be identified.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the statement by the Welsh Government entitled Funding to Support Devolved Public Sector Employers with Increased National Insurance Costs, published on 30 May 2025, what steps her Department is planning to take to address the remaining £36 million shortfall in funding for Welsh public sector employers arising from the increase in employer National Insurance Contributions.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy.
The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions.
HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much funding was provided to the Welsh Government (a) through the Barnett consequentials and (b) any other mechanisms as a result of the increase in employer National Insurance Contributions for public sector employers in Wales in the 2025-2026 financial year.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy.
The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions.
HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she last met with the Welsh Government to discuss the potential impact of the increase in employer National Insurance Contributions on public sector employers in Wales.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy.
The Welsh Government received £185 million of this support through the Barnett formula. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. It is for the Welsh Government to allocate this funding in devolved areas including funding for local authorities as it sees fit, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions.
HM Treasury ministers regularly engage with their Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including the impact of changes to employer National Insurance contributions on Welsh Government funding. The most recent F:ISC was on 17 October where these topics were discussed.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate she has made of the number of jobs to be created through the first phase of the Floating Offshore Wind Programme in the Celtic Sea; and how many of these will be in Wales.
Answered by James Murray - Chief Secretary to the Treasury
As part of the tender process for Offshore Wind Leasing Round 5, bidders were required to set out plans for creating onshore benefits from the development of the new wind farms. This included committing to creating new apprenticeships, and supporting those currently not in education, employment or training.
Research commissioned by The Crown Estate found that across the UK up to 5,300 new jobs and up to £1.4 billion could be generated for the economy by galvanising the supply chain and infrastructure opportunities arising from the development of these new floating wind farms off the coast of South Wales and Southwest England.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 28 March 2025 to question 41189, how many private businesses based in Wales paid (a) lease and (b) royalties fees to the Crown Estate in 2024-25.
Answered by James Murray - Chief Secretary to the Treasury
This information is not held centrally and could only be provided at disproportionate cost. The Crown Estate will provide separate reporting for Wales in its 2025-26 annual report and accounts.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of introducing a cut in VAT for the hospitality sector in Wales.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a reserved tax, applying UK wide. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services, including alcohol, whether served in hospitality establishments or sold in supermarkets. HMRC estimate that the cost of a 5 per cent reduced rate for accommodation, hospitality and tourist attractions would be around £10 billion this financial year. If the scope were also to include alcoholic beverages, the cost would be approximately £3 billion greater.
The Government is supporting the hospitality sector through the business rates system. To deliver our manifesto pledge, we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026/27. Ahead of these changes being made, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 March 2025 to Question 41189, what was the total value of (a) rents and (b) royalty fees paid by private businesses to the Crown Estate in Wales in the 2024-2025 financial year.
Answered by James Murray - Chief Secretary to the Treasury
The Crown Estate’s Integrated annual report and accounts are published each year, and laid before Parliament. These set out details of The Crown Estate’s financial returns and information on how it delivers value for the long-term benefit of the UK. The Crown Estate will provide separate reporting for Wales in its 2025-26 accounts.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has received information from relevant Departments on their plans to issue remaining (a) Remediable Service Statements and (b) Remedial Pension Saving Statements to all people affected by the McCloud remedy for pubic sector pensions.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The McCloud remedy under the Public Service Pensions and Judicial Offices Act 2022 took effect from October 2023 and will deliver a full remedy to all affected public service pension scheme members. Schemes are currently implementing the remedy. As part of this, all affected members are receiving a remediable service statement setting out the details of their pension entitlements and some members will also receive a Remediable Pension Savings statement in respect of their annual allowance position during the remedy period.
Scheme managers are responsible for supplying members with these statements and for setting out timetables for sending out the remaining statements. HM Treasury encourages schemes to complete this process as quickly as possible and regularly discusses McCloud remedy progress and timetables with responsible authorities, including the Welsh Government, which has responsibility for the Firefighters’ pension scheme in Wales.