Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Minister for Finance for Northern Ireland on the ability of the Northern Ireland Housing Executive to borrow to start to build homes.
Answered by Darren Jones - Chief Secretary to the Treasury
As Chief Secretary to the Treasury, I am in regular contact with the Northern Ireland Minister of Finance on matters relating to Northern Ireland Executive funding, including the request for enhanced borrowing powers for the Northern Ireland Housing Executive. This issue was most recently discussed at the Finance: Interministerial Standing Committee on 26 June 2025.
As part of the 2025 Spending Review, HM Treasury committed to begin immediate negotiations on a comprehensive Fiscal Framework for Northern Ireland. These discussions will include consideration of borrowing arrangements for the Northern Ireland Housing Executive.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 4 June 2025, HCWS682, on School Food, what estimate she has made of the potential Barnett consequentials for Northern Ireland following the expansion of free school meals to all children in households in receipt of Universal Credit.
Answered by Darren Jones - Chief Secretary to the Treasury
The Barnett formula is applied when departmental budgets change – not when departments announce how they are spending their budgets.
When changes to the Department for Education’s budget were confirmed at Spending Review 2025 on 11 June, the Barnett formula was applied in the usual way.
The published Block Grant Transparency document provides a detailed breakdown of how the block grants are calculated and the next version will be published in due course.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VAT on beauty and hair salons.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2024/25, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing the rate of VAT applicable to beauty and hair salons.
Answered by James Murray - Exchequer Secretary (HM Treasury)
VAT is the UK’s third largest tax. It is forecast to raise £180 billion in 2024/25, which funds public services. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the time taken to process business applications to join the UK Internal Market Scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK Internal Market Scheme (UKIMS) was launched in June 2023, allowing businesses across the United Kingdom to apply, and HMRC has successfully encouraged over 10,000 traders to get authorised.
HMRC is required to take a decision regarding the outcome of a UKIMS application within 120 days. Applications are typically processed with an average turnaround time of 12 to 15 working days. HMRC must undertake a range of checks to verify eligibility for the scheme and, in certain cases, seek further information from businesses.
More guidance can be found on gov.uk at:
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she is taking steps to improve processing time for applications to join the UK Internal Market Scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK Internal Market Scheme (UKIMS) was launched in June 2023, allowing businesses across the United Kingdom to apply, and HMRC has successfully encouraged over 10,000 traders to get authorised.
HMRC is required to take a decision regarding the outcome of a UKIMS application within 120 days. Applications are typically processed with an average turnaround time of 12 to 15 working days. HMRC must undertake a range of checks to verify eligibility for the scheme and, in certain cases, seek further information from businesses.
More guidance can be found on gov.uk at:
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support is available for businesses awaiting admission to the UK Internal Market Scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK Internal Market Scheme (UKIMS) was launched in June 2023, allowing businesses across the United Kingdom to apply, and HMRC has successfully encouraged over 10,000 traders to get authorised.
HMRC is required to take a decision regarding the outcome of a UKIMS application within 120 days. Applications are typically processed with an average turnaround time of 12 to 15 working days. HMRC must undertake a range of checks to verify eligibility for the scheme and, in certain cases, seek further information from businesses.
More guidance can be found on gov.uk at:
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reducing VAT on hospitality.
Answered by James Murray - Exchequer Secretary (HM Treasury)
To support hospitality businesses, the Government intends to introduce permanently lower business rates for retail, hospitality, and leisure (RHL) properties, with Rateable Values below £500,000, from 2026-27.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, the Government has prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will consider reducing the rate of VAT on hospitality.
Answered by James Murray - Exchequer Secretary (HM Treasury)
To support hospitality businesses, the Government intends to introduce permanently lower business rates for retail, hospitality, and leisure (RHL) properties, with Rateable Values below £500,000, from 2026-27.
Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, the Government has prevented the current RHL relief from ending in April 2025, extending it for one year at 40 per cent up to a cash cap of £110,000 per business, and we have frozen the small business multiplier.
VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Department of Health and Social Care's press release entitled Biggest investment into hospices in a generation, published on 19 December 2024, whether any Barnett consequentials will be made available for Northern Ireland.
Answered by Darren Jones - Chief Secretary to the Treasury
The Barnett formula applies to all increases or decreases to UK Government Departmental Expenditure Limits (DEL).
As this funding for adult and children’s hospices is being re-allocated from within existing Department of Health and Social Care budgets there will be no additional Barnett consequentials for the devolved governments. The Barnett formula has already been applied to funding previously allocated at Autumn Budget 2024.
The Northern Ireland Executive’s block grant funding is growing in real terms in 2025-26 and the Executive’s spending review settlement for 2025-26 is the largest in real terms of any settlement since devolution. The Northern Ireland Executive will receive over 24% more per person than equivalent UK Government spending in the rest of the UK in 2025-26, including the 2024 Northern Ireland Executive restoration financial package. That translates into over £2.5 billion more in 2025-26.