Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of working age people who have reduced their working hours as a result of marginal state income deductions.
Answered by James Murray - Chief Secretary to the Treasury
The Office for Budget Responsibility's October 2024 Economic and Fiscal Outlook (EFO) contains forecasts and assessments of government policy. Once the impact of all the Budget measures are taken into consideration, the OBR expect the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
This government is committed to increasing labour supply and tackling the recent rise in labour market inactivity. The Get Britain Working White Paper sets out the government’s strategy to support people back into work, and help them stay in work.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people were subject to a marginal tax rate (a) at and (b) above 100% in the last financial year.
Answered by James Murray - Chief Secretary to the Treasury
For individuals with income between £100,000-£125,140, the income tax Personal Allowance is tapered by £1 for every £2 earned above this limit, until it has been completely withdrawn at £125,140. Taxpayers with incomes within the taper band face a higher effective marginal tax rate of 60%, compared to 40% below £100,000 and 45% above £125, 140. Income tax rates and thresholds are devolved in Scotland, so marginal rates within the taper band will vary based on the registered address of the taxpayer.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the highest possible marginal tax rate is.
Answered by James Murray - Chief Secretary to the Treasury
For individuals with income between £100,000-£125,140, the income tax Personal Allowance is tapered by £1 for every £2 earned above this limit, until it has been completely withdrawn at £125,140. Taxpayers with incomes within the taper band face a higher effective marginal tax rate of 60%, compared to 40% below £100,000 and 45% above £125, 140. Income tax rates and thresholds are devolved in Scotland, so marginal rates within the taper band will vary based on the registered address of the taxpayer.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how their Department defines strategy.
Answered by Tulip Siddiq
The definition is detailed in the Functional Standards Common Glossary, which is published on the gov.uk website at: https://www.gov.uk/government/publications/functional-standards-common-glossary/functional-standards-common-glossary#s
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 November 2024 to Question 14333, from which Department's budget funding related to the proposed lease of the military base on Diego Garcia will be allocated; whether additional Treasury funding will be provided for that purpose; and whether she has had discussions with US counterparts on funding for the costs of the base.
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. The government will lay it before parliament for scrutiny and intends to introduce necessary implementation legislation before it will enter into force. No payments will be made until the treaty is legally binding.
Financial obligations arising from this agreement, including departmental budgetary responsibilities, will be managed responsibly within the government’s fiscal framework.
The military base on Diego Garcia is a joint UK-US facility and an essential part of the UK-US relationship. While the UK and Mauritius are the only signatories to the treaty, the US will continue to contribute to the operating costs of the base.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps they are taking to use (a) artificial intelligence and (b) data to help increase their Department's productivity.
Answered by James Murray - Chief Secretary to the Treasury
HM Treasury (HMT) is committed to improving its productivity, including through artificial intelligence (AI) and the effective use of data.
HMT is implementing a multi-year Data and AI Strategy to make sure it adopts a modern data platform, upskills its people in good data management, and implements ethical and sustainable AI use. The department has established a dedicated Data Science Hub, which provides data and AI tools and a dedicated data management function.
HMT is undertaking this in partnership with broader cross-governmental networks and private sector collaborations, to identify potential opportunities for cooperation and to address security risks associated with technological advancements.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the adequacy of the compensation provided to Equitable Life investors via the Equitable Life payment scheme.
Answered by Tulip Siddiq
The Equitable Life Payment Scheme has been fully wound down and closed since 2016 and there are no plans to reopen any decisions relating to the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at: https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 14 October 2024 to Questions 7840, 7842 and 7843 on Armed Forces: Private Education, whether she has made an estimate of the cost to the public purse of exempting from VAT the fees paid by children educated in private settings through the Continuity of Education Allowance.
Answered by James Murray - Chief Secretary to the Treasury
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to the fees paid by parents in receipt of the Continuity of Education Allowance.
Recognising the enormous sacrifices our military families make, the Ministry of Defence provide the Continuity of Education Allowance (CEA) to eligible Service Personnel. The government will monitor closely the impact of these policy changes on affected military families and the ongoing Spending Review is the right time to consider any changes to this scheme.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to support small businesses with cash banking, in the context of closures of physical banks.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take legislative steps to help ensure public access to cash.
Answered by Nigel Huddleston - Shadow Secretary of State for Culture, Media and Sport
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.