Written questions by Lake.

What recent discussions she has had with the Secretary of State for Energy Security and Net Zero on release of the investment reserve of the British Coal Staff Superannuation Scheme to uplift pensions.

The Chancellor meets regularly with the Secretary of State for Energy Security and Net Zero to discuss a range of issues. The Government is considering proposals put forward by the BCSSS Trustees and needs to understand their impacts for both scheme members and the Government, in the same way as we are doing for the Mineworkers’ Pension Scheme. The Government and BCSSS Trustees are working together to jointly commission analysis so that we can gain that understanding and work towards reaching agreement on a way forward.

What recent estimate she has made of the (a) backlog of cases and (b) average time taken by the Valuation Office Agency’s to process applications to transfer short-term rental properties between business rates and council tax; and what steps she is taking to help improve performance.

The Government has announced that the Valuation Office Agency (VOA) will be integrated into HMRC by April 2026. Moving the VOA’s functions into HMRC will increase oversight and accountability to Ministers over delivery of their priorities to modernise the tax system and improve the experience of taxpayers and businesses. On average, the VOA is clearing cases relating to self-catering properties in England and Wales within four months. Currently, the VOA is working as quickly as possible to clear any outstanding cases, focusing on the oldest cases first, and those where customers are facing financial hardship. More widely, it is replacing IT systems with modern cloud-based platforms that will deliver significant efficiencies across its work. It is also upskilling its workforce so they can handle multiple types of cases, and improving its digital services to make it easier for customers to self-serve.

Whether she has made an assessment of the impact of the surcharge for paying Vehicle Excise Duty in instalments on people with below average incomes.

In Autumn 2013, the Government announced the introduction of the Vehicle Excise Duty (VED) direct debit scheme from 1 October 2014. Instead of paying VED annually or in two instalments per year with a 10% surcharge, this allows people to pay VED monthly or in two instalments per year via direct debit, with a 5% surcharge. This change therefore reduced the surcharge payable by half. These surcharges are in place to make up for the interest that the government loses on monthly and six monthly VED payments. When the VED direct debit scheme was announced in 2013, a Tax Information and Impact Note was published setting out the expected impacts on individuals. It was expected that the direct debit scheme would have a positive impact for individuals, as it would enable the spreading of VED payments at a lower surcharge rate than non-direct debit instalments, and help individuals and families plan manage their finances. The Tax Information and Impact Note also set out expected economic, equalities and other impacts of the changes, which can be found here: https://assets.publishing.service.gov.uk/media/5a74c63ce5274a3f93b48b3e/vehicle-excise-dd.pdfAs with all taxes, the Government welcomes representations from the public on how the tax system can be improved. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.

What assessment she has made of the potential merits of removing the surcharge for paying Vehicle Excise Duty in instalments for people with below average incomes.

In Autumn 2013, the Government announced the introduction of the Vehicle Excise Duty (VED) direct debit scheme from 1 October 2014. Instead of paying VED annually or in two instalments per year with a 10% surcharge, this allows people to pay VED monthly or in two instalments per year via direct debit, with a 5% surcharge. This change therefore reduced the surcharge payable by half. These surcharges are in place to make up for the interest that the government loses on monthly and six monthly VED payments. When the VED direct debit scheme was announced in 2013, a Tax Information and Impact Note was published setting out the expected impacts on individuals. It was expected that the direct debit scheme would have a positive impact for individuals, as it would enable the spreading of VED payments at a lower surcharge rate than non-direct debit instalments, and help individuals and families plan manage their finances. The Tax Information and Impact Note also set out expected economic, equalities and other impacts of the changes, which can be found here: https://assets.publishing.service.gov.uk/media/5a74c63ce5274a3f93b48b3e/vehicle-excise-dd.pdfAs with all taxes, the Government welcomes representations from the public on how the tax system can be improved. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances.

What discussions she has had with the Welsh Government on the potential impact of providing compensation for public services in Wales for costs arising from the increase in employers national insurance contributions through the Barnett Formula.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government will receive funding through the Barnett formula in the usual way in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. The Welsh Government settlement is growing in real terms in 2025-26 and is the largest settlements in real terms of any since devolution. Overall, the Welsh Government receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.

What her policy is on the development of the digital pound.

HM Treasury and the Bank of England are continuing to explore the case for the digital pound. No decision has been taken on whether to introduce the digital pound.  The work currently being undertaken will provide the evidence base for a decision in due course.  Any decision will also take account of international developments and wider trends in money and payments. If a decision was taken to proceed with the digital pound, primary legislation would be introduced prior to its launch. Legislation would be preceded by a further public consultation and would guarantee users’ privacy and control of their money.

What the total amount provided to the Welsh Government for the financial year 2025-2026 to compensate Welsh public services for costs arising from the increase in employers national insurance contributions will be.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government will receive funding through the Barnett formula in the usual way in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. The Welsh Government settlement is growing in real terms in 2025-26 and is the largest settlements in real terms of any since devolution. Overall, the Welsh Government receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.

Whether the funding allocated to public services in Wales to compensate for costs arising from the increase in employers national insurance contributions will be allocated to the Welsh Government through the Barnett Formula.

At Autumn Budget 2024, the Chancellor agreed to provide funding to the public sector to support them with the additional cost associated with changes to employer National Insurance Contributions policy. The Welsh Government will receive funding through the Barnett formula in the usual way in 2025-26, including on this support. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy. The Welsh Government settlement is growing in real terms in 2025-26 and is the largest settlements in real terms of any since devolution. Overall, the Welsh Government receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.

What assessment has she made of the potential impact of the Government's plans to abolish NHS England on the future amounts of health related consequential funding that the Welsh Government will receive under the Barnett formula.

The Barnett formula is applied when departmental budgets change – not when departments announce changes in policy. The Department for Health and Social Care are working through the implications of abolishing NHS England and will provide further details in due course. For any funding implications, the Barnett formula will apply in the usual way as set out in the Statement of Funding Policy. A full breakdown of devolved government funding is set out in the Block Grant Transparency, the next iteration of which will be published in due course.

Whether she has had recent discussions with her counterpart in the Welsh Government on the application of the Barnett formula to agriculture funding in Wales from the 2025-26 financial year.

I regularly engage with Welsh Government ministerial colleagues. Engagement takes place at the Finance: Interministerial Standing Committee (which is next due to meet on the 27th of February) and bilaterally, as well as through regular correspondence, on issues relating to devolved government funding including the application of the Barnett formula. Agriculture and fisheries funding from 2024-25 has been added to the devolved governments’ baseline funding from 2025-26 which means the funding amount will be maintained in cash terms. Funding is no longer ringfenced and the devolved governments can choose how to spend this in devolved areas. In future, the Barnett formula will apply in the normal way to agriculture and fisheries funding provided to the Department for the Environment, Food and Rural Affairs in England.

Whether her Department plans to extend full expensing to leased vehicles to support the road haulage industry in Wales.

The UK has one of the most generous and competitive capital allowances regimes in the world and is the only major economy with permanent full expensing.The government recognises the case to extend full expensing to leasing and will explore making this change when fiscal conditions allow.

What plans her Department has to support the Welsh road freight industry.

At Autumn Budget 2024, the Government announced continued support for people and businesses, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2025-26. This maintains fuel duty rates at the levels set on 23 March 2022 for an additional 12 months, and represents a saving for drivers next year of overall around £3 billion. Vans will see an average saving of £126 and heavy goods vehicles will see an average saving of nearly £1,100. The Chancellor makes decisions on tax policy at fiscal events in the context of public finances. It is for the Welsh Government to allocate funding in devolved policy areas, including to support the Welsh road freight industry; they are accountable to the Senedd for those decisions. The Welsh Government will receive funding through the Barnett formula for any changes to UK Government department budgets in the usual way. This is the normal operation of the funding arrangements as set out in the Statement of Funding Policy.

What estimate she has made of (a) the number of people eligible for compensation and (b) the total cash value of the compensation owed under the ruling by the Court of Appeal from October 2024 that certain commissions that lenders paid to car dealerships for arranging loans were unlawful.

This is a complicated issue and the government is working closely with the Financial Conduct Authority and Prudential Regulation Authority. The government is pleased that the Supreme Court will hear an appeal from 1-3 April and hopes that its judgment will provide clarity for firms and consumers.

Whether she has made an assessment of the potential merits of extending deemed reseller rules to include UK-established sellers.

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.    The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.    The Government keeps all taxes under review as part of the policy making process.

What estimate she has made of the extent of VAT non-compliance by overseas retailers selling (a) goods and (b) services in the UK through online marketplaces.

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value. The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.

What estimate she has made of the revenue raised by extending deemed reseller rules to include UK-established sellers.

Since 1 January 2021 overseas sellers, or online marketplaces where they facilitate the sale, are required to be registered and account for VAT for supplies of low value imports of £135 or less. Where an overseas seller sells goods located in the UK at the point of sale via an online marketplace, the online marketplace is liable for the VAT for goods of any value.    The changes ensure a level playing field for UK high street and online retailers, ensure the continued flow of goods at the border and improve compliance. Certified analysis by the Office for Budget Responsibility (OBR) estimates the changes will raise £1.8 billion per annum by 2026-27.    The Government keeps all taxes under review as part of the policy making process.

Whether she plans to review the (a) operation and (b) adequacy of the Barnett Formula.

There are currently no plans to modify the operation of the Barnett formula. The Barnett formula has stood the test of time because it is simple, efficient and provides a clear and certain outcome. The Welsh Government currently receives at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.

What estimate she has made of the value of increased national insurance contributions from (a) GP surgeries, (b) higher education institutions and (c) care facilities (i) in Wales and (ii) nationally.

The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility. A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November.

With reference to paragraph 2.40 of the Autumn Budget 2024, published on 30 October, what assessment she has made of the potential merits of using the StatsWales definition of public sector workers for determining exemptions.

The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility.A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November.

Whether she has made an estimate of the value of increased national insurance contributions from public sector organisations included within the StatsWales definition of public sector but omitted from the definition used by the Office of National Statistics.

The Treasury routinely uses the Office for National Statistics (ONS) classification of the public sector boundary, for example in relation to public sector spending, public sector borrowing and public sector debt.The latest forecasts for tax revenues were published alongside the Office for Budget Responsibility’s (OBR) October Economic and Fiscal Outlook. These forecasts are based on economic determinants, including wage growth and employment levels. Detailed tax receipts forecasts can be found here: Economic and fiscal outlook – October 2024 - Office for Budget Responsibility.A Tax Information and Impact Note that covers the employer NICs changes was published by HMRC on 13 November.