Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.81 of the Autumn Budget 2024, HC295, what discussions she has had with stakeholders in the farming sector on the introduction of a carbon border adjustment mechanism.
Answered by James Murray - Chief Secretary to the Treasury
The government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027, as first announced in December 2023.
The UK CBAM will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to those produced here, making sure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
UK manufacturers already face a carbon price via the UK Emissions Trading Scheme (ETS). The UK CBAM rate that is charged on imports will reflect the final carbon price paid by domestic industries after support mechanisms (such as free allowances within the UK ETS) have been taken into account. As a result, we expect initial liabilities arising from the UK CBAM to be modest whilst encouraging the supply and use of fertiliser with lower levels of embodied carbon than would otherwise have been the case.
The Government expects that there will be no material impact on UK food prices, as a result of the UK CBAM.
Over the course of the last year, His Majesty’s Treasury and His Majesty’s Revenue and Customs have undertaken significant and comprehensive engagement on the design and implementation of the UK CBAM. This includes discussions with stakeholders in the farming and fertiliser sectors.
The Government Response to the recent consultation on the introduction of a UK CBAM, including a summary of responses, can be found at: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-a-uk-carbon-border-adjustment-mechanism
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.81 of the Autumn Budget 2024, published on 30 October, what assessment she has made of the potential impact of the carbon border adjustment mechanism on the cost of imported fertiliser.
Answered by James Murray - Chief Secretary to the Treasury
The government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027, as first announced in December 2023.
The UK CBAM will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to those produced here, making sure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
UK manufacturers already face a carbon price via the UK Emissions Trading Scheme (ETS). The UK CBAM rate that is charged on imports will reflect the final carbon price paid by domestic industries after support mechanisms (such as free allowances within the UK ETS) have been taken into account. As a result, we expect initial liabilities arising from the UK CBAM to be modest whilst encouraging the supply and use of fertiliser with lower levels of embodied carbon than would otherwise have been the case.
The Government expects that there will be no material impact on UK food prices, as a result of the UK CBAM.
Over the course of the last year, His Majesty’s Treasury and His Majesty’s Revenue and Customs have undertaken significant and comprehensive engagement on the design and implementation of the UK CBAM. This includes discussions with stakeholders in the farming and fertiliser sectors.
The Government Response to the recent consultation on the introduction of a UK CBAM, including a summary of responses, can be found at: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-a-uk-carbon-border-adjustment-mechanism
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 5.81 of the Autumn Budget 2024, published on 30 October, what assessment she has made of the potential impact of the carbon border adjustment mechanism on the fertiliser supply chain.
Answered by James Murray - Chief Secretary to the Treasury
The government will introduce the UK Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027, as first announced in December 2023.
The UK CBAM will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to those produced here, making sure that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.
UK manufacturers already face a carbon price via the UK Emissions Trading Scheme (ETS). The UK CBAM rate that is charged on imports will reflect the final carbon price paid by domestic industries after support mechanisms (such as free allowances within the UK ETS) have been taken into account. As a result, we expect initial liabilities arising from the UK CBAM to be modest whilst encouraging the supply and use of fertiliser with lower levels of embodied carbon than would otherwise have been the case.
The Government expects that there will be no material impact on UK food prices, as a result of the UK CBAM.
Over the course of the last year, His Majesty’s Treasury and His Majesty’s Revenue and Customs have undertaken significant and comprehensive engagement on the design and implementation of the UK CBAM. This includes discussions with stakeholders in the farming and fertiliser sectors.
The Government Response to the recent consultation on the introduction of a UK CBAM, including a summary of responses, can be found at: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-a-uk-carbon-border-adjustment-mechanism
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Autumn Budget 2024, published on 30 October 2024, HC 295, what estimate her Department has made of the number of farms that will no longer be eligible for agricultural property relief.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms, and further explanatory information at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
No changes are being made to the eligibility criteria for agriculture property relief. The system is being reformed to limit its generosity for claims over £1 million.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 2.51 of the Autumn Budget 2024, published on 30 October, whether her Department has made an assessment of the potential impact of changes to Agricultural Property Relief on family farms.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published information about the reforms to agricultural property relief and business property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the Environment, Food and Rural Affairs Select Committee on the potential impact of changes to Agricultural Property Relief.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published information about the reforms to agricultural property relief and business property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many meetings Ministers in her Department have had with farming stakeholders on changes to Agricultural Property Relief in the last four months.
Answered by James Murray - Chief Secretary to the Treasury
The Government has published information about the reforms to agricultural property relief and business property relief at https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief.
In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.
The Government takes into account all representations made ahead of the Budget, and meets with stakeholders on a regular basis.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he is taking steps to prevent banks from providing (a) financial and (b) investment support to business which derive income from industrial livestock companies with low animal welfare practices.
Answered by Bim Afolami
The UK has a world-leading record on animal welfare, and the government has introduced a range of measures to ensure animals receive the care, respect, and protection they deserve. This includes providing grants to farmers towards capital equipment that improves animal welfare and banning the export of live animals for fattening and slaughter. The government has recently announced its intention to consult on proposals to strengthen animal welfare labelling in the food sector.
We are also protecting animals abroad by banning the import of hunting trophies from endangered animals and the advertisement of unacceptable low-welfare animal practices abroad.
The decisions about what products are offered and to whom remain commercial decisions for banks and building societies.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps his Department has taken to help support recruitment in the hospitality and tourism industry.
Answered by John Glen
Hospitality and leisure businesses will be supported by our Spring Budget employment package which aims to provide the workforce they need to thrive. In addition, these sectors will benefit from business rates support worth £13.6bn over the next five years which includes a more generous of the Retail, Hospitality and Leisure (RHL) relief scheme which is increasing from 50% to 75% in 2023-24. We have also increased the Draught Relief duty differential.
The government has also contributed to various successful campaigns to stimulate the tourism sector’s recovery, including VisitBritain’s latest multi-million pound international GREAT campaign "See things Differently" which ran from February until June 2023, positioning Britain as a dynamic, diverse and welcoming destination.
Asked by: Tim Farron (Liberal Democrat - Westmorland and Lonsdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made a recent assessment of the extent to which business rates applicable to (a) small and (b) large businesses which mainly operate through physical premises adequately reflect their business costs.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The recent revaluation of business rates, which came into effect on 1 April 2023, ensures rateable values, and therefore bills, more accurately reflect current market values. The Government is legislating for more frequent revaluations, from every 5 years to every 3 years, a key stakeholder ask which will permanently make the system fairer and more responsive for all ratepayers.
The Government has also announced a package worth £13.6 billion over the next five years to support businesses with the revaluation, including:
Regarding small businesses, the Government has continued its generous Small Business Rate Relief scheme which means over a third of properties (720,000) pay no business rates at all, with an additional 76,000 in the taper benefitting from reduced bills.