Written questions by Lake.

What assessment she has made of the potential impact of reducing VAT on domestic energy bills on fuel poverty in Wales.

The Government believes that we need to support households who are struggling with energy bills now whilst we transition to cheaper clean power by 2030. We are providing targeted support that reaches low income households directly across Great Britain, including Wales.This winter, 2.7 million extra households will receive £150 off their energy bills as the Warm Home Discount is expanded - putting money directly into people’s pockets. This increases the number of households who are eligible to over six million in total - including 900,000 families with children and a total of 1.8 million households in fuel poverty.More widely, gas and electricity are subject to a reduced rate of VAT at five per cent, rather than the standard 20 per cent. The reduced rate for domestic fuel and power cost the Exchequer £8 billion in 2023-24, and going further would come at a significant additional cost.

What recent discussions her Department has had with the Welsh Government on (a) Wales’s comparability factor for transport and (b) the impact of that factor on funding for the Welsh Government.

HM Treasury ministers and officials regularly engage with Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales. The most recent F:ISC was on 17 October.

What recent discussions she has had with the Welsh Government on the Autumn Budget 2025.

There have been regular discussions with the Welsh Government on the Budget. This ensures that we are taking account of their views to ensure that we are delivering for the people of Wales. The Chancellor met with the First Minister for Wales on the 7th of August in Wales. I also met with the Welsh Government’s Finance Minister on the 17th of October at the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including funding arrangements and his priorities for the Autumn Budget .

What assessment she has made of the adequacy of levels of UK Research and Innovation funding allocated to Wales.

This Government is investing in Wales to help create jobs and drive economic growth. UKRI has recently launched the Local Innovation Partnerships Fund (LIPF) - a new programme that will empower innovation leadership through local ‘triple helix’ partnerships between civic institutions, business and universities, delivering impact, at scale. This Fund has earmarked £30 million for the Cardiff Capital Region [1]. [1] Cardiff Capital Region backed by £30m to unlock innovation and growth - GOV.UK

What recent discussions she has had with the Welsh Government on a formal review of Wales’s fiscal framework.

We have ongoing discussions with the Welsh Government about funding flexibilities and updating their Fiscal Framework and remain committed to working in partnership to ensure the smooth delivery of their funding settlement.HM Treasury ministers regularly engage with Welsh Government counterparts, including through forums such as the Finance: Interministerial Standing Committee (F:ISC), to discuss a range of issues affecting Wales, including funding arrangements. The most recent F:ISC was on 17 October.

What recent assessment she has made of the potential impact of the flat rate anti-money laundering supervision fee regime on small art galleries.

Economic crime presents a substantial threat to UK security and stability, and anti money laundering supervisors have an important role to play to ensure that supervised businesses understand and manage the risks to which they are exposed. HM Revenue & Customs supervises art market participantsalongside businesses in several other sectors.It is policy of this, and previous Governments, that the cost of supervision should be met by supervised businesses and not through general taxation. HMRC has recently published its intention to increase some of the fees that itcharges for supervision to ensure that it has the income it needs to meet its obligations as a supervisor. HMRC is considering comments from businesses and trade bodies and will publish its next steps shortly. The Money Laundering Regulations apply only to sales of art exceeding the equivalent of €10,000 in value, which excludes 80% of businesses in the sector. HMRC hasconsidered the impact of the proposed fee increases on businesses against its needs as a supervisor and intends to minimise impact on supervised businesses, especially the vast majority who trade from a single premises.

What assessment she has made of the potential merits of introducing (a) relief and (b) a discounted rate for small art galleries following the increase in anti-money laundering supervision fees.

Economic crime presents a substantial threat to UK security and stability, and anti money laundering supervisors have an important role to play to ensure that supervised businesses understand and manage the risks to which they are exposed. HM Revenue & Customs supervises art market participantsalongside businesses in several other sectors.It is policy of this, and previous Governments, that the cost of supervision should be met by supervised businesses and not through general taxation. HMRC has recently published its intention to increase some of the fees that itcharges for supervision to ensure that it has the income it needs to meet its obligations as a supervisor. HMRC is considering comments from businesses and trade bodies and will publish its next steps shortly. The Money Laundering Regulations apply only to sales of art exceeding the equivalent of €10,000 in value, which excludes 80% of businesses in the sector. HMRC hasconsidered the impact of the proposed fee increases on businesses against its needs as a supervisor and intends to minimise impact on supervised businesses, especially the vast majority who trade from a single premises.

Pursuant to the Answer of 14 July 2025 to Question 66247 on Public Expenditure: Wales, when her Department plans to publish a new release of Block Grant Transparency data.

The Block Grant Transparency publication breaks down all changes in the devolved governments’ block grant funding from the 2015 Spending Review to Main Estimates 2023-24. The most recent report was published in July 2023. The next publication will include a breakdown of devolved governments’ funding since the 2015 Spending Review up to and including Spending Review 2025 and will be published in due course. Block Grant Transparency: https://www.gov.uk/government/publications/block-grant-transparency-july-2023

Pursuant to the Answer of 10 September 2024 to Question 4409 on Taxation: International Cooperation, what recent steps she has taken to support the implementation of UN General Assembly resolution A /RES/78/230 on the Promotion of inclusive and effective international tax cooperation at the United Nations adopted on 22 December 2023.

The UK is committed to working with all stakeholders to ensure inclusive and effective international tax cooperation, and has been engaging in discussions at the UN over a future Framework Convention, including the recent informal sessions for the technical workstreams.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.

What estimate her Department has made of the total amount of Barnett consequential funding which will be made available to Wales following the City Region Local Transport funding announced on 4 June 2025.

The 2025 Spending Review set the Department for Transport’s budget for 2026-27 to 2028-29. In line with the Statement of Funding Policy, the Barnett formula is applied to changes in overall department settlements, not to individual programmes. As a result, it is not possible to identify specific Barnett consequentials arising from individual programmes, such as the Transport for City Regions funding announced on 4 June 2025. This is the normal operation of the Barnett formula at Spending Reviews. The Welsh Government’s settlement at the 2025 Spending Review is the largest in real terms since devolution in 1998. It ensures that the Welsh Government continues to receive more than 20% more funding per person than equivalent UK Government spending in England, which is above their 15% higher relative need agreed in the Welsh Government Fiscal Framework.

What recent discussions she has had with the Welsh Government on updating the Welsh Fiscal Framework.

The UK and Welsh Governments have regular discussions on the delivery funding arrangements, including the Fiscal Framework.We remain committed to working in partnership with the Welsh Government to ensure the Fiscal Framework continues to deliver value for money while upholding our shared commitment to fiscal responsibility.   As set out in the Welsh Government Fiscal Framework agreed in 2016, a full review is triggered if the Welsh Government’s relative funding falls below 115% of equivalent UK Government spending per head in the rest of the UK.

Pursuant to the Answer of 7 May 2025 to Question 48499 on Revenue and Customs, when HMRC's Statutory Payment Consultation Group will next be convened.

Minutes of the Statutory Payments Consultation Group meeting held on 30th January 2024 will be published before the Autumn. A date has not been set for a future meeting of the group.

Pursuant to the Answer of 7 May 2025 to Question 48499 on Revenue and Customs, whether her Department plans to publish the minutes of the 2024 meeting of the Statutory Payment Consultation Group.

Minutes of the Statutory Payments Consultation Group meeting held on 30th January 2024 will be published before the Autumn. A date has not been set for a future meeting of the group.

Whether it is her Department's policy that the classification of the East-West rail project as carrying 100% comparability factor for Wales is a publishing error in each Statement of funding policy, published between 2021 and 2024.

The UK Government is responsible for heavy rail infrastructure across England and Wales so spends money on this in Wales rather than funding the Welsh Government to do so through the Barnett formula. This approach applies to investment in heavy rail by the Department for Transport, including HS2 and East-West Rail, and is consistent with the funding arrangements for all other policy areas reserved in Wales as set out in the Statement of Funding Policy. We are aware of a potential error, originating in Spending Review 2021, with the Department for Transport comparability factor used to calculate Barnett consequentials for the devolved governments at spending reviews. HM Treasury will work through the impact of this potential error ahead of the next Statement of Funding Policy publication.

How much additional funding through the Barnett Formula will the Welsh government receive from regional transport infrastructure funding in England announced on 4 June 2025.

The Barnett formula is applied when departmental budgets change – not when departments announce how they are spending their budgets. When changes to the Department for Transport’s budget are confirmed at Spending Review 2025 on 11 June, the Barnett formula will be applied in the usual way. The published Block Grant Transparency document provides a detailed breakdown of how the block grants are calculated and the next version will be published in due course.

Whether her Department has made an assessment of the potential cost savings to public services resulting from investment in independent social welfare advice services.

The Government recognises the important role that independent advice services play in supporting individuals.For example, DWP provide grant funding to Citizens Advice, who deliver Help to Claim support for customers to apply for Universal Credit. Help to Claim reduces the number of Universal Credit benefit queries DWP receive and enables work coaches to focus on work related activities.In addition, the Money and Pensions Service, which is sponsored by DWP, continues to provide impartial, free money and pensions guidance directly to consumers.DWP assesses the impacts from its investments, including public services efficiencies, in line with standard Treasury guidance.

What estimate she has made of the potential financial savings to the Exchequer of (a) withdrawing the postponed VAT accounting process and (b) bringing forward payment of VAT on imports using the same facilities as apply to customs duties.

Postponed VAT accounting is an established and valued part of the UK’s VAT regime, which provides significant simplification and cashflow benefits to UK businesses who import goods from overseas. Unlike customs duty, VAT paid upon importation of goods is typically able to be reclaimed where the goods are sold on or used in the course of business. Postponed VAT accounting allows businesses to account for and reclaim the VAT on the same VAT return, thereby producing a nil result, rather than paying VAT on import and reclaiming it on a future VAT return. Postponed VAT accounting does not change the overall VAT liability on any imported goods.

What recent assessment she has made of the potential impact of not increasing the personal allowance on levels of disposable income in Wales.

The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility. At our first Budget, we decided not to extend the freeze on personal tax thresholds which was implemented by the previous Government. The OBR’s forecast does not decompose policy impacts on Real Household Disposable Income (RHDI) per capita by individual policies or by country. Accounting for the total impact of Budget measures on a UK basis, the OBR forecast RHDI per capita to rise at an annual average rate of 0.5% per year over the parliament.

How many times HMRC's Statutory Payment Consultation Group convened in each of the past 5 years.

The Statutory Payments Consultation Group convened as follows:2020 – once2021 – once2022 – once2023 – not held2024 - once

Whether she has made an assessment of the potential merits of allocating a portion of the financial penalties collected by the Financial Conduct Authority to fund financial redress to people affected by the collapse of Football Index and BetIndex Limited.

The government recognises the significant impact the collapse of BetIndex Ltd had on former customers. Revenue from FCA fines is used to benefit the taxpaying public. First, the FCA deducts the costs of enforcement from its fine income. Any money left over is passed to the Treasury in accordance with the Financial Services and Markets Act 2000. The Treasury must surrender it to the Consolidated Fund and is then part of the Government’s total revenues, used to pay for all Government spending on public services like hospitals, hospices, and other crucial services. The Government has no plans to change this approach. The previous Government concluded that it would not be appropriate for the Government to use public funds to provide compensation for those who had lost money through the collapse of Football Index and BetIndex. Whilst the Government strongly sympathises with all who were impacted, we do not think this decision should be reopened.