Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that the Autumn Budget 2025 incentivises businesses to invest in (a) job creation and (b) workforce development.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Economic growth is the central mission of this government, and we recognise that sustainable growth can only be achieved in partnership with businesses and other stakeholders.
We are providing long-term stability through clear fiscal rules that give firms the confidence to hire and expand. Through the National Wealth Fund, we are unlocking over £70 billion in private investment and creating jobs across key sectors. We are also advancing structural reforms to drive business-led job creation, including a new modern Industrial Strategy, agreeing new trade deals, reforming the UK planning system, and have launched the Backing Your Business plan, which delivers targeted support for small and medium-sized enterprises.
To support workforce development, we are transforming the apprenticeship levy into a more flexible Growth and Skills Levy, enabling employers to fund a wider range of high-quality training, including shorter and foundation apprenticeships and short courses under the Industrial Strategy. Employers are also supported through an NIC exemption for apprentices under 25.
However, we cannot comment in advance on Budget measures.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential cumulative impact of (a) National Insurance contributions and (b) the Employment Rights Act on overall hiring costs for UK businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy, including on businesses. The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
As set out in the government’s published impact assessments for the Employment Rights Bill, there are a range of channels through which the measures in the Bill could benefit the economy, as well as potential offsetting effects. Final impacts will depend on further policy decisions that are for secondary legislation.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of National Insurance contributions on small and medium-sized businesses ability to hire new staff.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy, including on businesses. The Government decided to protect the smallest businesses from the changes to employer NICs by increasing the Employment Allowance from £5,000 to £10,500. This means that this year, 865,000 employers will pay no NICs at all, and more than half of all employers will either gain or will see no change.
The OBR forecast, which accounts for the impacts of employer NICs on the economy, expects that the unemployment rate will fall to 4.1% by the end of 2027 and remaining at that rate for the rest of the forecast.
After accounting for impacts of employer NICs, the OBR still expect the employment level to increase from 33.6m in 2024 to 34.8m in 2029.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the International Monetary Fund on the impact of the rising cost of bond yields.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government does not comment on specific market moves.
As the Governor of the Bank of England recently noted, the underlying driver of recent moves in yield curves is global. This means it is more important than ever to have fiscal rules that provide stability.
Sound public finances are essential to economic and financial stability, and delivering economic growth. That is why at the Budget we will continue to meet this government’s non-negotiable fiscal rules, building on the decisions we took at Autumn Budget 2024 and Spring Statement 2025.
This is the responsible choice – to live within our means, reduce our levels of borrowing in the years ahead and support the Bank of England to get inflation down, so we can deliver on the priorities of working people and spend less on servicing debt.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of trends in the level of borrowing costs on mortgages.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government does not comment on specific financial market movements. Government borrowing costs are determined by a wide range of international and domestic factors, and it is normal for the price and yields of gilts to vary, especially in the context of wider movements in global financial markets.
The pricing of mortgages, which is influenced by a number of factors, is a commercial decision for lenders in which the Government does not intervene.
Headline average mortgage rates are materially lower than the recent peaks seen in Summer 2023 and Autumn 2022.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with Cabinet colleagues on the potential impact of the trends in the cost of debt on Departmental Budgets.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published Spending Review 2025, which set departmental spending allocations consistent with the fiscal strategy set out at Autumn Budget 2024 and Spring Statement 2025. The Chancellor will provide further updates at Autumn Budget 2025.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of trends in the level of UK borrowing costs on government spending.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published Spending Review 2025, which set departmental spending allocations consistent with the fiscal strategy set out at Autumn Budget 2024 and Spring Statement 2025. The Chancellor will provide further updates at Autumn Budget 2025.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consultation (a) her Department and (b) the Valuation Office Agency undertook with the (i) flexible workspace sector and (ii) representatives of small businesses prior to concluding that most serviced offices should be assessed as a single property for business rates purposes.
Answered by James Murray - Chief Secretary to the Treasury
Following developments in case law and legal advice, the VOA has reviewed its approach and concluded that most serviced offices will need to be assessed as a single property. The VOA has engaged with the sector and rating agents to discuss the approach to assessing serviced offices.
In line with legal obligations, the VOA is working through outstanding Checks and Challenges on serviced offices. For serviced offices that are new to the Rating List or subject to Checks and Challenges, the starting position is to treat them as a single assessment, unless there is clear evidence to support separate assessments. The VOA will apply the law to the facts on a case-by-case basis.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment (a) her Department and (b) the Valuation Office Agency has made of the potential impact of changing the business rates valuation methodology for serviced offices from multiple hereditaments to a single hereditament model on (i) small businesses and (ii) flexible workspace operators.
Answered by James Murray - Chief Secretary to the Treasury
Following developments in case law and legal advice, the VOA has reviewed its approach and concluded that most serviced offices will need to be assessed as a single property. The VOA has engaged with the sector and rating agents to discuss the approach to assessing serviced offices.
In line with legal obligations, the VOA is working through outstanding Checks and Challenges on serviced offices. For serviced offices that are new to the Rating List or subject to Checks and Challenges, the starting position is to treat them as a single assessment, unless there is clear evidence to support separate assessments. The VOA will apply the law to the facts on a case-by-case basis.
Asked by: Saqib Bhatti (Conservative - Meriden and Solihull East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate her Department has made of the potential impact of business rates relief on supply of serviced office buildings.
Answered by James Murray - Chief Secretary to the Treasury
The Valuation Office Agency (VOA) is responsible for valuing non-domestic property for business rates purposes. At present many serviced offices are valued as separate units. This means that businesses occupying serviced office units are liable for business rates. Where eligible, these businesses may claim Small Business Rate Relief (SBRR). SBRR provides 100 per cent rate relief for properties with rateable values below £12,000, and tapered support to those with rateable values below £15,000.