Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with the Secretary of State for Education on budgets for the devolved adult skills fund.
Answered by Darren Jones - Chief Secretary to the Treasury
The Chancellor of the Exchequer and Chief Secretary of the Treasury meet regularly with the Secretary of State for Education.
At the Spending Review on 30 October, the Department for Education received a settlement providing total DEL funding of £99.7 billion in 2025-26. The Department is responsible for determining their budgets, including for the Adult Skills Fund, through their Business Planning process. Budgets beyond 2025-26 will be determined at phase 2 of the Spending Review on 11 June.
Achieving growth and breaking down barriers to opportunity are key priorities for this Government. The Adult Skills Fund is a crucial component of both missions helping to provide a foundation for individuals to improve earnings and employment opportunities, and open doors to further learning. This Government is committed to seeing local government empowered and strengthened including through the devolution of adult skills.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of interest only mortgages on financial planning for borrowers.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA) has responsibility for the day-to-day operation of the residential mortgage market, including the regulation of interest only mortgages.
Following research and analysis published in August 2023, the FCA is reviewing its existing guidance on the treatment of interest only borrowers.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to issue guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme; and what progress the joint working group has made on that issue.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress her Department's joint working group with HMRC has made on clarifying the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has plans to issue guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to provide interim guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to reduce the VAT (a) rate and (b) threshold for businesses that provide personal care services.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. At Autumn Budget 2024, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to fix the public finances, fund public services, and restore economic stability.
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This means the majority of UK businesses are out of the VAT system. Any consideration of changes to the threshold would have to carefully balance the potential benefits to small businesses, the economy as a whole, and tax revenues.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has conducted an impact assessment on the potential impact of changes to agricultural property relief on tenant farmers.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.
It is expected that up to around 520 estates will claim APR (including those that also claim for BPR) and will be impacted by these changes in 2026-27. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will bring forward legislative proposals to (a) debt collecting companies to wait for decisions of appeal courts before taking action and (b) otherwise require improve the regulation of debt collection practices.
Answered by Tulip Siddiq
The Government expects fair treatment of individuals in debt and recognises the important role of responsible practices for debt recovery. We likewise recognise the negative impact that aggressive pursuit of debt can have on individuals, particularly where court action is involved.
The Government remains committed to improving debt collection practices across sectors and supporting individuals in financial difficulties relating to debt more broadly. While there are already a number of regulations and guidelines in place, we will continue to monitor the sector closely and engage with stakeholders to ensure that regulation keeps pace with changing circumstances.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to allow (a) churches and (b) other religious buildings to continue to recover VAT.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Chancellor has now set out departmental budgets and the spending priorities for Phase 1 of the Spending Review. The outcome of individual programmes, such as the Listed Places of Worship Grant Scheme, will now be assessed during the departmental Business Planning process.