Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an estimate of the reduction in gross value added in Wales from proposed reforms to business property relief and agricultural property relief.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government has received representations, including from the construction and plant hire sector, about the reforms to both agricultural property relief and business property relief.
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 520 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
The Government has also set out that around 1,500 estates across the UK only claiming business property relief are expected to pay more inheritance tax in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. The remaining 500 estates will include business assets from sectors across the economy that are eligible for business property relief. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those estates only holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent Office for Budget Responsibility certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Welsh Government on the appointment of a Crown Estate Commissioner with special responsibility for Wales, in the context of the Crown Estate Act 2025.
Answered by James Murray - Chief Secretary to the Treasury
The UK Government has regular discussions with the Welsh Government at official and ministerial level. The Financial Secretary to the Treasury will next meet with Mark Drakeford, Cabinet Secretary for Finance and Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning on 10 September. This will include discussion of the appointment of a Crown Estate Commissioner with special responsibility for Wales.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she expects the Crown Estate Commissioners with special responsibilities for (a) Wales, (b) England and (c) Northern Ireland to be appointed.
Answered by James Murray - Chief Secretary to the Treasury
These Crown Estate Commissioner appointments are governed by the Code for Public Appointments. The recruitment campaign for the Crown Estate Commissioner with special responsibility for Wales will launch this autumn, with a view to making an appointment by early 2026. The appointments of the Commissioners with special responsibility for Northern Ireland and England will follow later.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will provide funding to the National Vehicle Crime Intelligence Service in the Autumn Budget 2025 to enable it to expand its operations in key hotspots.
Answered by James Murray - Chief Secretary to the Treasury
The National Vehicle Crime Intelligence Service (NaVCIS) is a national policing unit which provides dedicated specialist intelligence and enforcement on vehicle crime. NaVCIS is funded by industry, including finance and leasing companies, insurers and hauliers. In the financial year 2024-25, Home Office provided one-off funding of £250,000 to help support work at the ports to prevent stolen vehicles and vehicle parts being shipped abroad, including providing additional staff and specialist equipment.
This Government is committed to tackling vehicle crime. In the Crime and Policing Bill, we have banned electronic devices used to steal vehicles, empowering the police and courts to target the criminals using, manufacturing, importing and supplying them.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of moving electricity bill levies into general taxation, in the context of average annual costs of household energy bills.
Answered by James Murray - Chief Secretary to the Treasury
Energy levies support vital investment to secure the UK’s electricity system with homegrown, clean power. Through public and private investment, the Government is protecting billpayers from volatile international fossil fuel markets.
To help those that most need it, the Warm Home Discount provides a £150 discount off electricity bills to around 3 million households. The government has consulted on expanding the scheme to around 6 million households in total for winter 2025/26 and will respond to the consultation in due course.
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 impact of the Spending Review 2025 on businesses in Wales.
Answered by Darren Jones - Minister for Intergovernmental Relations
Spending Review 2025 (SR25) delivers for businesses UK-wide, including across Wales. Public finance institutions will work in collaboration with the devolved governments and local stakeholders to invest in businesses and technologies, and drive growth across all the nations of the UK. The British Business Bank, National Wealth Fund, and Great British Energy are already investing in businesses across Scotland, Wales and Northern Ireland.
The government is due to publish its modern Industrial Strategy setting out how the government will accelerate growth in eight growth-driving sectors and strengthen economic resilience across the UK.
The growth-driving sectors – advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services – are active across the regions and nations, each with their own specialisms. Supporting the success of these sectors, and the places where they are based, will be crucial in delivering high-quality jobs, new opportunities and higher living standards across the whole country.
Further detail on what SR25 delivers for businesses across the UK can be found at: Spending Review 2025 document - GOV.UK
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of planned changes to business property relief on levels of investment made by affected family businesses in (a) Wales and (b) the UK in each of the next three years.
Answered by James Murray - Chief Secretary to the Treasury
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that around 1,500 estates across the UK only claiming business property relief are expected to pay more inheritance tax in 2026-27, with around 1,000 of these expected to only hold shares designated as “not listed” on the markets of recognised stock exchanges, such as the Alternative Investment Market. These reforms mean that around three-quarters of estates claiming business property relief in 2026-27 (excluding those estates only holding shares designated as “not listed”) will not pay any more inheritance tax in 2026-27.
The reforms to agricultural property relief and business property relief are forecast to raise a combined £520 million in 2029-30. The independent OBR certified this costing at Autumn Budget 2024 and it does not expect the reforms to have a significant macroeconomic impact.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the potential impact of technical issues associated with the (a) Customs Handling of Import and Export Freight, (b) common health entry document and (c) Cargo Community Systems for the UK on costs incurred by exporters since January 2024.
Answered by James Murray - Chief Secretary to the Treasury
HMRC’s Customs Handling of Import and Export Freight (CHIEF) system is no longer in use. No new declarations have been made on CHIEF since July 2024, and the system was fully decommissioned in December 2024. HMRC’s customs systems, including CHIEF prior to its decommissioning, have remained resilient, and in the unlikely event of system issues HMRC has contingency processes to maintain the flow of goods.
Common health entry documents (CHEDs) for UK exporters are a requirement of EU member states that they are exporting to, and the associated systems and processes are outside the control of UK Government. CHEDs for UK imports are issued by the Import of Products, Animals, Food, and Feed System (IPAFFS) and system reliability to enable CHEDs to be issued to traders has generally been good.
Cargo Community Systems for the UK is a recognised Community System Provider but is a private sector entity responsible for its own systems and processes, including resolution of technical issues.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people the Crown Estate employs in the United Kingdom.
Answered by James Murray - Chief Secretary to the Treasury
The average number of staff during the year 2023-24 was 642, as set out in Table 7 Staff Costs of The Crown Estate Integrated Report and Accounts 2023/24. The figure will be updated in The Crown Estate’s annual report for 2024-25, which is due for publication in the summer.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Crown Estate charges private businesses (a) lease fees and (b) royalty fees on profits.
Answered by James Murray - Chief Secretary to the Treasury
The Crown Estate as a landowner charges occupiers/tenants, which can be private businesses, rent in accordance with their lease agreements.
In some cases, the rent structure under The Crown Estate’s leases can include a turnover rent element whereby the amount of rent charged is either a percentage of the occupier/tenant’s turnover made at the leased property or the higher of fixed rent and a percentage of the occupier/tenant’s turnover at the leased property. These rent structures are commonly used in the retail market. Royalty fees are used in certain specific situations within a lease structure.