Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Transport Department on switching road tax to be on a per mile basis.
Answered by James Murray - Chief Secretary to the Treasury
Treasury Ministers have regular discussions with other government departments on a range of matters.
Vehicle Excise Duty (VED) applies to vehicles used or kept on public roads, which does not vary by miles driven. However, fuel duty applies to the petrol or diesel used by motorists driving internal combustion engine vehicles; the greater the miles driven, the more fuel duty incurred.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions her Department has had with the International Monetary Fund on the borrowing rates being paid by the UK government.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government does not comment on specific financial market movements. Financial market movements including gilt yields are determined by a wide range of international and domestic factors. Demand for UK debt remains strong, and we continue to monitor developments.
As part of ongoing engagement with many different stakeholders relevant to the conduct of economic and fiscal policy, the Government engages regularly and constructively with the IMF, and values their independent advice.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason betting companies operating primarily (a) over the phone and (b) by direct debit are included in the proposed single Remote Betting and Gaming Duty.
Answered by James Murray - Chief Secretary to the Treasury
The Government is consulting on proposals to simplify the current gambling tax system by merging the three current taxes that cover remote gambling into one.
The definition of ‘remote gambling’ in the Gambling Act 2005 means gambling in which persons participate by the use of remote communication.
“In this Act “remote communication” means communication using —
a) the internet,
b) telephone,
c) television,
d) radio, or
e) any other kind of electronic or other technology for facilitating communication”
The consultation asks respondents to share views on whether this definition is appropriate for the proposed Remote Betting and Gaming duty (RBGD). As such, I would encourage interested parties to respond to it.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made representations to the Secretary of State for Business and Trade on the monetary value of VAT registration thresholds.
Answered by James Murray - Chief Secretary to the Treasury
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.
The Chancellor has regular discussions with other Government Ministers on matters of common interest.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many permanent civil servants in her Department had their contract of employment terminated as a result of poor performance in the (a) 2022-23, (b) 2023-24 and (c) 2024-25 financial years.
Answered by James Murray - Chief Secretary to the Treasury
When numbers are so small that individuals could be identified, identifying details are masked to protect their privacy.
Data on dismissals for poor performance is held in anonymised form without details of whether employees are permanent or temporary. Dismissals during probation for poor performance have also been included in the data.
Based on this data our response is as follows:
(a) 2022-23 Fewer than five
(b) 2023-24 Fewer than five
(c) 2024-25 Fewer than five
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of abolishing the Office for Budget Responsibility.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Office for Budget Responsibility (OBR) is the government’s official independent forecaster. The OBR’s independent scrutiny, via its economic and fiscal forecasts, underpins the credibility of the government’s fiscal policy. That is why on coming into office, one of the first bills this Government passed was the ‘fiscal lock’ to ensure that no future government can sideline the OBR.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 27 May to Question 46599 on Civil Servants: Workplace Pension, what estimate she has made of the cost to the public purse of changing the civil service pension scheme to a defined contribution model.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Civil Service Pension Scheme in Great Britain is an unfunded defined benefit pension scheme. The Public Service Pensions Act 2013 (the Act) provided for the introduction of new pension schemes for staff in public services, including the civil service. New schemes were introduced in 2014-15, with benefits calculated on a career average rather than final salary basis.
The Act provides that should the government wish to change, before the 31 March 2040, the extent to which the Civil Service Pension Scheme is a care average scheme it must consult those likely to be affected (or their representatives) with a view to reaching agreement with them and lay a report in Parliament. Under section 27 of the Act, the report must set out why the changes are proposed, having regard to the desirability of not making such a change before 31 March 2040.
The government has not assessed the cost of changing the Civil Service Pension Scheme. The costs of any defined contribution structure would be dependent on the exact design of any reformed scheme, and would need to consider total civil service remuneration, including pay. A move to a funded defined contribution scheme would have significant implications for the public purse, as employer and member contributions that are currently used to meet the cost of current pensions would instead need to be invested, leading to increased Total Managed Expenditure of around £7bn per annum for the Civil Service Pension Scheme.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help maintain the level of return on savings in the context of her proposal to consolidate pension schemes that have under £25 billion of assets.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Increasing the returns on savings is a key priority of the Pensions Investment Review. Our proposals to consolidate schemes will improve efficiencies, reduce costs, and allow for more effective investment strategies. Together, the review and measures outlined in the King’s Speech, such as the Value for Money framework, are focussed on improving the levels of pension scheme performance and improving saver outcomes
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing income tax bands on economic productivity.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.
This decision was reflected in the OBR’s spring 2025 forecast which can be found here: https://obr.uk/economic-and-fiscal-outlooks/.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing the VAT registration threshold on levels of growth of small and medium-sized businesses.
Answered by James Murray - Chief Secretary to the Treasury
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.