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 - Chief Secretary to the 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 - Chief Secretary to the 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 - Chief Secretary to the 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 - Chief Secretary to the 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 - Chief Secretary to the 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 - Minister for Intergovernmental Relations
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.
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 appointing a representative from Northern Ireland to the Financial Inclusion Committee.
Answered by Tulip Siddiq
On 5 December, I convened a Financial Inclusion Committee which has been established to tackle the problems of financial exclusion. Through this committee, I will work with consumer groups and industry on the development of a Financial Inclusion Strategy.
This strategy must work for the whole of the UK. As such, I have written to my counterparts in Devolved Governments to update them on this work and extend the offer to input on an ongoing basis, both at ministerial and official level. More widely, we will be working closely with a number of organisations from across the UK, beyond the core committee, to ensure that the development of the strategy is informed by a range of perspectives and expertise.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had on the potential merits of appointing a Northern Ireland representative to the Financial Inclusion Committee.
Answered by Tulip Siddiq
On 5 December, I convened a Financial Inclusion Committee which has been established to tackle the problems of financial exclusion. Through this committee, I will work with consumer groups and industry on the development of a Financial Inclusion Strategy.
This strategy must work for the whole of the UK. As such, I have written to my counterparts in Devolved Governments to update them on this work and extend the offer to input on an ongoing basis, both at ministerial and official level. More widely, we will be working closely with a number of organisations from across the UK, beyond the core committee, to ensure that the development of the strategy is informed by a range of perspectives and expertise.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will fund an updated version of the report entitled Cost of Division: A benchmark of performance and expenditure, published by the Ulster University Economic Policy Centre in January 2016.
Answered by Darren Jones - Minister for Intergovernmental Relations
As part of the restoration of the Northern Ireland Executive (NIE) the UK Government and NIE agreed to add a 24% needs-based factor into the Barnett formula as it applies to the NIE from 2024-25. This is part of the financial package worth over £3.3 billion.
This factor reflects the higher level of relative need in Northern Ireland, that the independent Northern Ireland Fiscal Council (NIFC) has calculated is 24% more per head than the rest of the UK for equivalent spending. The NIFC was established with cross-party agreement by the NIE in 2021 as part of the New Decade, New Approach agreement signed with the UK Government.
Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will conduct a comprehensive review of (a) relative need and (b) associated implications for the level of the fiscal floor for Northern Ireland required to ensure equivalent levels of service provision across the UK.
Answered by Darren Jones - Minister for Intergovernmental Relations
As part of the restoration of the Northern Ireland Executive (NIE) the UK Government and NIE agreed to add a 24% needs-based factor into the Barnett formula as it applies to the NIE from 2024-25. This is part of the financial package worth over £3.3 billion.
This factor reflects the higher level of relative need in Northern Ireland, that the independent Northern Ireland Fiscal Council (NIFC) has calculated is 24% more per head than the rest of the UK for equivalent spending. The NIFC was established with cross-party agreement by the NIE in 2021 as part of the New Decade, New Approach agreement signed with the UK Government.