Written questions by McDonald.

How many Full‑Time Equivalent staff are engaged via the Managed Service Provider, broken down by business area.

HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.

What modelling HMRC has undertaken on the displacement risk from the Managed Service provider model to existing HMRC roles, including surge staff and fixed‑term employees.

HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.

Whether HMRC plans to maintain Customer Services Group headcount and total productive hours as Managed Service Provider capacity increases.

HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.

Whether Managed Service Provider staffing levels are expected to increase beyond peak‑demand coverage for each function.

HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.

What HMRC’s projected Managed Service Provider headcount is for the (a) next 12 months and (b) Spending Review period.

HMRC is currently using Managed Service Providers (MSPs) to provide additional customer service capacity, equivalent to around 500 FTE, focused on routine work. This includes support for the Online Services Helpdesk and handling simple PAYE enquiries.HMRC are currently in an initial approximately 18 month ‘proof of value’ phase using existing Government contracts. This will allow them to test, learn and ensure quality and value for money before wider implementation.HMRC has been clear that no HMRC colleague will be made redundant as a result of this initiative.HMRC will continue to use a range of resourcing models, alongside the use of MSPs, to meet variable customer demand.

What checks are made on the postal codes of goods to identify whether the origin of such goods are from (a) the illegal settlements in the Occupied Palestinian Territories and (b) Israel.

It is a long-standing requirement that Israeli preference cannot be claimed on goods if the production conferring originating status has taken place in a location within the territories brought under Israeli administration since June 1967. The Department of Business & Trade has recently updated the list of non-eligible postcodes to reflect the latest position on Israeli Settlements. HMRC takes a risk-based and intelligence-led approach to customs enforcement. Compliance measures evolve as the picture of risk changes ensuring any interventions are proportionate to the risk. HMRC has confirmed that regular checks are carried out on imports from Israel, and they are subject to verification to check their originating status. HMRC introduced a new document code on 1 September 2025 to strengthen compliance with existing processes by asking the declarant to confirm imported goods met the conditions to claim preference under the UK-Israel Trade and Partnership Agreement, including alignment with the updated list of non-eligible postcodes. These actions form part of the ongoing policy advice and review of processes aimed at ensuring the UK’s origin verification procedures remain robust and responsive to developments on the ground; ensuring any interventions are proportionate to the risk. The government remains committed to upholding the integrity of its trade policy and ensuring that goods receiving preferential treatment under trade agreements fully comply with legal and procedural requirements.

Whether guidance is given to the food sector on potential criminal culpability in the importation of (a) goods and (b) services from the illegal settlements in the Occupied Palestinian Territories.

The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law, and that goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Israel.

What proportion of goods from the illegal settlements in the Occupied Palestinian Territories are passed-off as coming from Israel.

The UK Government has a clear position that Israeli settlements in Palestine are illegal under international law. Goods produced in these settlements are not entitled to benefit from preferential tariff treatment under the UK’s current trade agreements with the Palestinian Authority and Government of Israel.Where there are doubts about the origin of goods that have been declared as being of Israeli origin, HMRC will undertake checks to verify the origin of those goods to ensure fiscal compliance. HMRC does not however provide specific details regarding checks as it may serve to undermine compliance activity.

What estimate her Department has made of the real terms value of public sector wages in each year since 2010.

Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target. The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth. As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25. Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place. However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.

What assessment her Department has made of the potential merits of implementing a long-term strategy to improve public sector pay in real terms.

Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target. The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth. As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25. Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place. However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.

Pursuant to the Answer of 19 December 2024 to Question 19626 on Public Sector: Collective Bargaining, what steps plans to take to help increase confidence in the public sector pay review body process.

Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target. The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth. As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25. Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place. However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.

What assessment her Department has made of the potential impact of public sector pay awards in the 2025-26 financial year on trends in the (a) recruitment and (b) retention of public sector staff.

Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target. The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth. As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25. Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place. However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.

What assessment her Department has made of the potential merits of introducing regularised direct negotiations with workforce trades unions on (a) recruitment and (b) retention.

Pay for most public sector workforces is set based upon recommendations produced by respective independent Pay Review Bodies (PRBs). The PRBs consider a range of evidence when forming their recommendations, including the need to recruit, retain and motivate suitably able and qualified people; the financial circumstances of Government; the Government's policies for improving public services; and the Government's inflation target. The last government neglected public sector pay for 14 years, leaving public services unable to recruit and keep the staff they need. That is why going forward, we want to make sure our public services can attract and keep the talent they need, as to ensure that those services provide a firm foundation for economic growth. As part of achieving this, every 2025/26 pay award announced by the Government to date is above forecast inflation over the 2025/26 pay year, delivering another real-terms pay rise on top of the one the Government provided for 2024/25. Furthermore, this Government remains committed to the independent Pay Review Body process as the established mechanism for determining pay uplifts for most public sector workers. It has operated for over four decades, provides independent advice and is a neutral process in which all parties play a role; which the unions campaigned to establish in the first place. However, we recognise that faith in the Pay Review Body process had fallen in recent years, and so we are committed to bringing pay awards earlier in the pay year. That is why this Government announced pay awards for many workforces over two months earlier than last year. Additionally, we will be remitting PRBs for the next pay round shortly to put an end to pay awards being delivered late, ensuring that our valued public sector workers receive pay awards closer to the start of the pay year.

If she will make it her policy to provide hon. Members with an economic and fiscal outlook assessment by the Office for Budget Responsibility of the measures in the Pathways to Work Green Paper, published on 18 March 2025, before bringing forward legislative proposals on the measures.

The Office for Budget Responsibility (OBR) published their latest Economic and Fiscal Outlook on 26 March 2025 alongside Spring Statement 2025. This included an assessment of some of the changes in the Pathways to Work Green Paper which the Government is legislating on, with the relevant legislation being introduced in due course. In their March 2025 Economic and Fiscal Outlook, the OBR stated they “plan to work with the Treasury and DWP to further scrutinise both the direct and indirect effects of these welfare and employment support policies ahead of our next forecast, alongside the effects of any further measures from the Green Paper that have been sufficiently developed”.

What assessment her Department has made of the adequacy of the role of the United Nations in the coordination of an international tax framework.

The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention. The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members. The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.

What assessment her Department has made of the potential merits of a UN Tax Convention.

The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been actively engaging in negotiations at the UN over a future Framework Convention. The UK believes that a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating initiatives, and seek to secure the broad support and participation of members. The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.

If she will bring forward legislative proposals to require private lenders to agree debt cancellation for lower income countries.

The Government is committed to tackling unsustainable debt. Private lenders have an important part to play and alongside our partners in the G20 and Paris Club, we expect private creditors to participate in debt restructurings on comparable terms. This is a fundamental principle of the G20 Common Framework and we welcome recent agreements reached by bondholders of Zambia and Ghana. At this stage, the Government is not pursuing a legislative approach that would force private or other lenders to participate in debt restructurings. The Government is focused on delivering a market-based (contractual) approach to private sector participation, to promote more efficient restructurings, reduce the ability for creditors to hold out, and increase transparency.