Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of extending cross-border workers’ relief to residents of Northern Ireland who work in the Republic of Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK has one of the largest networks of Double Taxation Conventions (DTCs) in the world, covering more than 130 jurisdictions.
The UK also seeks to encourage and maintain an international consensus on cross-border economic activity and to promote international trade and investment. To this end the UK plays an active role in the Organisation for Economic Co-operation and Development (OECD).
The UK prioritises maintaining and updating its network of double taxation agreements, especially with major trading partners such as the Republic of Ireland. Whether such updates take place depends on several factors, including the priorities and availability of the relevant treaty partner.
Officials at HM Treasury and HM Revenue & Customs are in regular contact with their Irish counterparts in relation to the DTC and continue to discuss the issues arising from increased cross-border and remote working, amongst other issues.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance HMRC provides to Northern Ireland residents with UK National Insurance numbers and Irish Personal Public Service numbers on reporting income earned in the Republic of Ireland; and whether she plans to publish simplified guidance for (a) occasional and (b) part-time cross-border workers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK has one of the largest networks of Double Taxation Conventions (DTCs) in the world, covering more than 130 jurisdictions.
The UK also seeks to encourage and maintain an international consensus on cross-border economic activity and to promote international trade and investment. To this end the UK plays an active role in the Organisation for Economic Co-operation and Development (OECD).
The UK prioritises maintaining and updating its network of double taxation agreements, especially with major trading partners such as the Republic of Ireland. Whether such updates take place depends on several factors, including the priorities and availability of the relevant treaty partner.
Officials at HM Treasury and HM Revenue & Customs are in regular contact with their Irish counterparts in relation to the DTC and continue to discuss the issues arising from increased cross-border and remote working, amongst other issues.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has discussed with her Irish counterpart the potential merits of (a) amending and (b) clarifying the UK–Ireland Double Taxation Convention to ensure equal treatment for cross-border workers on the island of Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The UK has one of the largest networks of Double Taxation Conventions (DTCs) in the world, covering more than 130 jurisdictions.
The UK also seeks to encourage and maintain an international consensus on cross-border economic activity and to promote international trade and investment. To this end the UK plays an active role in the Organisation for Economic Co-operation and Development (OECD).
The UK prioritises maintaining and updating its network of double taxation agreements, especially with major trading partners such as the Republic of Ireland. Whether such updates take place depends on several factors, including the priorities and availability of the relevant treaty partner.
Officials at HM Treasury and HM Revenue & Customs are in regular contact with their Irish counterparts in relation to the DTC and continue to discuss the issues arising from increased cross-border and remote working, amongst other issues.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of introducing a multi-year averaging mechanism for pension growth calculations in the Health and Social Care Pension Scheme in Northern Ireland to mitigate the impact of delayed pay awards.
Answered by James Murray - Chief Secretary to the Treasury
Policy in respect of Public Service Pension Schemes in Northern Ireland is a devolved matter for the Northern Ireland Executive.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if HMRC will consider allowing pay award uplifts in Northern Ireland to be reallocated to the tax years to which they relate.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In general, employment income is taxable in the year of receipt, which is not always the year that the work was carried out.
This is an important principle of the tax system ensuring clarity and consistency in the treatment of employment income as set out in Section 18 of the Income Tax (Earnings and Pensions) Act 2003.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of delayed implementation in Northern Ireland of pay awards recommended by the Review Body on Doctors' and Dentists' Remuneration on consultants' pension tax liabilities.
Answered by James Murray - Chief Secretary to the Treasury
Decisions regarding the implementation of pay awards for doctors and dentists in Northern Ireland are a devolved matter and are the responsibility of the Northern Ireland Executive.
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 - Minister for Intergovernmental Relations
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 - Minister for Intergovernmental Relations
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 - Chief Secretary to the 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 - Chief Secretary to the 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.