Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether trade unions organising seafarer ratings and officers will be consulted over the changes to the Tonnage Tax outlined in paragraphs 2.175 to 2.177 of the Autumn Budget and Spending Review 2021, HC 822.

At Autumn Budget 2021, the Chancellor announced that the Government will introduce a package of measures to reform the UK’s Tonnage Tax regime, which will come into force from April 2022. These reforms aim to see more firms basing their headquarters in the UK, using the UK’s world-leading maritime services industry, and flying the UK flag.

The Government and industry will continue to work collaboratively on the training commitment, which supports the training of hundreds of new, skilled cadets every year. This will include engagement with stakeholders in trade unions and industry.

The Government will also review whether to include ship management within scope of the Tonnage Tax regime, and whether the existing limit that can be claimed in capital allowances by organisations leasing ships to Tonnage Tax participants remains appropriate. Relevant stakeholders will be consulted throughout this review.