Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to Fairness Foundation and King's College's report Identifying and mitigating the risks of wealth inequality in the UK, published on 26 January 2025, if she will make an assessment of the potential merits of the findings of that report.
Answered by James Murray - Chief Secretary to the Treasury
While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26.
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
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 recommendations outlined in the Fairness Foundation's report entitled Wealth Gap Risk Register, published on 15 October 2024.
Answered by James Murray - Chief Secretary to the Treasury
While income and wealth are not always directly correlated, distributional analysis shows that Government decisions at Autumn Budget 2024 and Spending Review 2025, Phase 1 are progressive and benefit households in the lowest income deciles the most, on average as a percentage of income in 2025-26.
The Government is committed to making sure the wealthiest in our society pay their fair share of tax. That is why the Chancellor announced a series of reforms at Autumn Budget 2024 to help fix the public finances in as fair a way as possible. The increases in tax are concentrated on the highest income households. Overall, on average, all but the richest 10% of households will benefit from policy decisions in 2025-26.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department plans to take to support family owned small and medium sized enterprises with changes in the level of (a) the National Living Wage and (b) Business Property Relief.
Answered by James Murray - Chief Secretary to the Treasury
At Autumn Budget, the Government took a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. These were tough decisions given the situation we inherited from the previous administration, but the Government has done so in a way that makes the tax system fairer and more sustainable.
Specifically to support small and medium businesses, including family businesses, the Budget announced generous tax reforms including more than doubling the employment allowance to £10,500, maintaining the Small Profits Rate and marginal relief at their current rates and thresholds, maintaining the Annual Investment Allowance, and freezing the small businesses multiplier for 2025-26.
The government has protected smaller family businesses from BPR changes, providing a very significant level of relief with the first £1 million of business assets continuing to receive 100% relief and then 50% thereafter.
Each year, the independent Low Pay Commission produces recommendations to the Government on the National Living Wage rates. At Autumn Budget, the Government accepted the LPC’s recommendations on the rates in full, meaning that NLW rate will rise to £12.21 per hour from April 2025.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will update the Green Book to allow for the valuation of the reduced carbon footprint of UK produced materials as opposed to imported ones.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Green Book has supplementary guidance on the valuation of energy use and greenhouse gas emissions. This is found here: https://assets.publishing.service.gov.uk/media/65aadd020ff90c000f955f17/valuation-of-energy-use-and-greenhouse-gas-emissions-for-appraisal.pdf
That supplementary guidance notes that appraisals should consider the greenhouse gas emissions content of all of the materials that are used to implement a proposal. This applies both to materials produced in the UK, as well as those imported from abroad.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people were in receipt of (a) Statutory Maternity Pay, (b) Statutory Paternity Pay, (c) Statutory Adoption Pay and (d) Statutory Shared Parental Pay in the 2023-24 financial year.
Answered by James Murray - Chief Secretary to the Treasury
Data for number of people in receipt of Statutory Maternity pay, Statutory Paternity Pay, Statutory Adoption Pay, and Statutory Shared Parental Pay is provided in the table below.
Totals for 2023-24 | |
Statutory Maternity Pay | 623,100 |
Statutory Paternity Pay | 207,600 |
Statutory Adoption Pay | 4,500 |
Statutory Shared Parental Pay | 17,200 |
Notes:
1) Data collected using HMRC Real Time Information (RTI) and extracted in August 2024. RTI is subject to revision or updates.
2) Claimants number has been rounded to nearest 100.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether independent education settings for people over the age of 19 will be VAT-exempt.
Answered by James Murray - Chief Secretary to the Treasury
As set out in our manifesto and confirmed in the Chancellor’s July statement, we are ending the VAT break for private schools. The government will introduce 20% VAT on education and boarding services provided for a charge from 1 January 2025.
As per the draft VAT legislation that was published in July, the new VAT charge will apply to education and vocational training provided either at sixth forms attached to private schools or standalone private sixth form colleges. However, education and vocational training provided by further education colleges, which are classified as public sector institutions, will not be subject to VAT. The Government will confirm the final policy design at the Budget.
Support is available to all educational institutions to help them understand any new tax liabilities that result from these changes; alongside existing support for businesses, bespoke HMRC guidance is available online and this will be complemented with webinars intended to talk schools through the steps they will need to take to comply with any new tax liabilities.
The change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where pupils’ places in private schools are being funded by local authorities (LAs) because their needs can only be met in private school (e.g. in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP)), LAs will be able to reclaim the VAT so it does not apply to those fees.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether independent school fees for people over the age of 18 who are (a) in education and (b) have an Education Health and Care Plan will by exempt from VAT.
Answered by James Murray - Chief Secretary to the Treasury
As set out in our manifesto and confirmed in the Chancellor’s July statement, we are ending the VAT break for private schools. The government will introduce 20% VAT on education and boarding services provided for a charge from 1 January 2025.
As per the draft VAT legislation that was published in July, the new VAT charge will apply to education and vocational training provided either at sixth forms attached to private schools or standalone private sixth form colleges. However, education and vocational training provided by further education colleges, which are classified as public sector institutions, will not be subject to VAT. The Government will confirm the final policy design at the Budget.
Support is available to all educational institutions to help them understand any new tax liabilities that result from these changes; alongside existing support for businesses, bespoke HMRC guidance is available online and this will be complemented with webinars intended to talk schools through the steps they will need to take to comply with any new tax liabilities.
The change will not impact pupils with the most acute additional needs, where these can only be met in private schools. Where pupils’ places in private schools are being funded by local authorities (LAs) because their needs can only be met in private school (e.g. in England, where attendance at that private school is required by a child’s Education, Health and Care Plan (EHCP)), LAs will be able to reclaim the VAT so it does not apply to those fees.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information her Department holds on how much debt relief Chad has received from external private creditors through the G20 Common Framework for Debt Treatments.
Answered by Darren Jones - Minister for Intergovernmental Relations
Chad agreed a debt treatment with its official bilateral creditors and its main private creditor, Glencore, in November 2022.
According to the International Monetary Fund (IMF), the treatment is consistent with the commitments made by Chad and parameters under its IMF-supported program. This is enabling Chad to restore its debt sustainability, while ensuring protection against the volatility of oil prices through contingent treatment mechanisms.
The UK is not a creditor to Chad.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to promote the workplace nursery scheme; and how much has been spent promoting that scheme in each financial year since it was introduced.
Answered by Laura Trott - Shadow Secretary of State for Education
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the level of usage of the workplace nursery scheme since it was introduced.
Answered by Laura Trott - Shadow Secretary of State for Education
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.