Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with other Cabinet colleagues on the possibility of front-loading payments to Mauritius as part of the proposed UK-Mauritius Treaty on the future sovereignty of the British India Ocean Territory.
Answered by Darren Jones - Minister for Intergovernmental Relations
HMT has been engaged on the financial mandate for negotiations with Mauritius. Any UK-Mauritius agreement, alongside the structure of any associated financial obligations, remains subject to finalisation and signature. As lead departments, the FCDO and the MOD must balance the commitments of any agreement against wider priorities, as per the Managing Public Money Framework.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2025 to Question 21589 on Military Bases: Diego Garcia, when she plans to publish the costs of the (a) proposed economic partnership and (b) Chagossian Trust Fund; and whether she plans to frontload payments for the proposed lease of the military base.
Answered by Darren Jones - Minister for Intergovernmental Relations
The UK-Mauritius treaty, which will enable the continued operation of the base on Diego Garcia, alongside the structure of any associated financial obligations, still remains subject to finalisation and signature.
It is not normal practice for the UK to confirm the value of its payments for military bases anywhere across the globe. Any financial obligations arising from this agreement will be managed responsibly within the government’s fiscal framework, including through the upcoming Spending Review.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of closer economic ties with China on (a) the UK economy and (b) public finances.
Answered by James Murray - Chief Secretary to the Treasury
The Chancellor visited Beijing and Shanghai for the 2025 UK-China Economic and Financial Dialogue. The government published a press statement and policy outcomes paper on Saturday 11 January which lists the outcomes for British businesses and the UK economy. The press release and paper can be found here.
The Chancellor also published a written ministerial statement about her visit to China on the morning of Monday 13 January (found here) and delivered an oral statement to the House of Commons on Tuesday 14 January.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 November 2024 to Question 14333 on Diego Garcia: Military Bases, which Departments will incur the costs of the (a) lease of the military base, (b) economic partnership and (c) Chagossian trust fund; with which Departments her Department has reached agreement; whether the financial elements are included in the (i) 2025-26 budget allocations and (ii) spending envelope to 2029-30; and whether she has received representations to increase the cost envelope since 3 October 2024.
Answered by Darren Jones - Minister for Intergovernmental Relations
The UK-Mauritius treaty enabling the continued operation of the base on Diego Garcia is still subject to finalisation and signature. Financial obligations arising from this agreement, including departmental budgetary responsibilities, will be managed responsibly within the government’s fiscal framework, including through the upcoming spending review.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12263 on Employers' Contributions: Public Sector, what estimate she has made of the number of public sector employees covered by the provisions of line 26 of Table 5.1 of the Autumn Budget 2024 for compensating public sector organisations for proposed changes to employer National Insurance contributions.
Answered by James Murray - Chief Secretary to the Treasury
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
The Government plans to update Parliament on allocations by department in the usual way as soon as possible.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 November 2024 to Question 12263 on Employers' Contributions: Public Sector, what methodology her Department used to calculate the provisions identified in line 26 of Table 5.1 of the Autumn Budget 2024, HC 295, published on 30 October 2024, for compensating public sector organisations for the cost of increases in employer national insurance contributions.
Answered by James Murray - Chief Secretary to the Treasury
The amount of public sector support was based on an estimate of the proportion of employer NICs receipts paid by public sector organisations, using the Office for National Statistics (ONS) classification of the public sector boundary. The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with Cabinet colleagues on the cost of the proposed lease of the military base at Diego Garcia following the UK and Mauritius joint statement, published on 3 October 2024; and what provisions she has made in the Budget and Spending Review for these costs.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Chief Secretary to the Treasury has engaged in discussions and reached an agreement with Cabinet colleagues on the financial elements of the proposed lease of the military base on Diego Garcia, as part of the UK-Mauritius agreement announced on 3 October 2024.
The treaty is still being finalised and will require ratification before coming into force. No payments will be made until the treaty is legally binding.
This agreement secures the future of Diego Garcia as a vital part of the UK’s global defence network, reinforcing regional and global security. It also supports a new era of economic partnership with Mauritius and demonstrates the UK’s commitment to the welfare of Chagossian communities. The financial package includes an annual payment, an economic partnership programme, and a Trust Fund to benefit Chagossians.
As is standard practice, the UK does not disclose the specific costs of payments for military bases to ensure their secure operation. Any financial obligations arising from this agreement will be managed responsibly within the government’s fiscal framework.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, published on 30 October 2024, HC 295, what estimate she has made of the cost to the public purse through (a) third party spend and (b) contracts as a result of changes to employers National Insurance Contributions in each of the next five years; and if she will publish any modelling undertaken on this.
Answered by James Murray - Chief Secretary to the Treasury
The Chancellor made an announcement at the Autumn Budget setting out that the rate of Employer National Insurance Contributions will increase from 13.8% to 15% from 6 April 2025. Raising the revenue required to fund public services and restore economic stability requires difficult decisions on tax, which is why the Government is asking employers to contribute more. At the Autumn Budget, the Chancellor also agreed departmental spending allocations for 2024-25 and 2025-26. It is the responsibility of contracting authorities to prioritise these budgets effectively and make assessments on the costs of procurement.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to line 26 of Table 5.1 of the Autumn Budget 2024, published on 30 October 2024, HC 295, which public sector organisations will be funded to cover the additional costs of the changes to employers National Insurance Contributions; and how much funding will be provided to each of them in the next five years.
Answered by James Murray - Chief Secretary to the Treasury
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
The Government plans to update Parliament on allocations by department in the usual way as soon as possible.
Asked by: Priti Patel (Conservative - Witham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, published on 30 October 2024, HC 295, what the Resource DEL provided to each Department in respect of the impact of the changes to employers National Insurance Contributions will be.
Answered by James Murray - Chief Secretary to the Treasury
The Government will provide support for departments and other public sector employers for additional Employer National Insurance Contributions costs only. This funding will be allocated to departments, with the Barnett formula applying in the usual way.
This is in line with the approach taken under the previous Government’s Health and Social Care Levy.
The Government plans to update Parliament on allocations by department in the usual way as soon as possible.