Written questions by Lewis.

Pursuant to the Answer of 6 December 2024 to Question 17571 on Fossil Fuels: Insurance, whether the Prudential Regulation Authority is responsible for enforcing the (a) development and (b) implementation of transition plans for (i) UK regulated financial institutions and (ii) FTSE 100 companies.

The Prudential Regulation Authority (PRA) is responsible for overseeing the prudential regulation and supervision of financial institutions in the UK, ensuring their safety, soundness, and compliance with regulatory standards. Responsibility for regulatory requirements relating to transition plans sits with the Financial Conduct Authority (FCA), who have set out their plans to consult on strengthened transition plan disclosure expectations for listed companies. The PRA and the FCA are both operationally independent regulators, who have the power to take action against financial services firms that do not comply with their rules.

Pursuant to the Answer of 6 December 2024 to Question 17571 on Fossil Fuels: Insurance, whether her Department has taken steps with the Prudential Regulation Authority to ensure Lloyd’s of London’s underwriting activities are compliant with the UK’s legal climate commitments.

The Prudential Regulation Authority (PRA) is responsible for overseeing the prudential regulation and supervision of financial institutions in the UK, ensuring their safety, soundness, and compliance with regulatory standards. Responsibility for regulatory requirements relating to transition plans sits with the Financial Conduct Authority (FCA), who have set out their plans to consult on strengthened transition plan disclosure expectations for listed companies. The PRA and the FCA are both operationally independent regulators, who have the power to take action against financial services firms that do not comply with their rules.

If she will take steps to prevent insurers underwriting fossil fuel projects.

This Government is committed to delivering the UK’s legal and international climate commitments. Clean power by 2030 and accelerating to net zero is a key mission of this Government and essential to credible, long-term economic growth. Insurers make commercial decisions on their underwriting approach following their assessment of the relevant risks. However, it is imperative that the insurance sector aligns its operations with the United Kingdom’s national and international climate commitments, and insurers must operate within the framework set by the regulatory authorities. The Prudential Regulation Authority continues to work with Lloyd’s of London and other sector representatives to ensure their practices support the transition to a low-carbon economy.

Whether she is taking steps to help ensure that the Financial Services Growth and Competitiveness Strategy supports the wider economy.

Financial services is central to the government’s modern industrial strategy due to the key role it plays in financing growth across the economy. The Chancellor’s Mansion House speech set out how the government will work with the sector to deliver sustainable, inclusive growth. This included publishing pension reform proposals to unlock billions of pounds of new investment into the UK economy and reforms that will help the sector support the Net Zero transition.

Whether organisations in receipt of funding via the National Wealth Fund will be required to (a) have a UK headquarters and (b) be UK taxpayers.

The National Wealth Fund (NWF) will mobilise billions of pounds of investment in the UK's world leading clean energy and growth industries. In order to be eligible for consideration for NWF finance, the project must meet the NWF’s investment principles, with proceeds going to UK-based projects. These are: The investment helps to support the objectives to drive regional and local economic growth or tackle climate change;The investment is in infrastructure assets or networks, or in new infrastructure technology;The investment is intended to deliver a positive financial return; andThe investment is expected to crowd in significant private capital over time. Individual investments will be considered on a case-by-case basis in line with the NWF’s mandate and strategic priorities, which can be found on www.uknwf.org.uk.

What the Government's planned timetable is for introducing legislation to establish the National Wealth Fund.

The National Wealth Fund (NWF) has been established and can operate under the UK Infrastructure Bank Act 2023. The government will bring forward new legislation when parliamentary time allows to broaden its mandate beyond infrastructure and cement its position as a permanent institution at the heart of the country’s long-term growth and prosperity.

Whether private equity firms will be eligible to receive funds via the National Wealth Fund.

As the UK's new impact investor, the National Wealth Fund will mobilise private investment – including from institutional investors such as private equity firms – and catalyse investment that would not have otherwise taken place. The National Wealth Fund may also outsource management of its capital to third party managers, such as private equity firms, where doing so provides the best route to deploy capital into the UK’s world-leading clean energy and growth industries and to support the delivery of our new Industrial Strategy.

Whether the National Wealth Fund's statement of strategic priorities will include (a) meeting net zero targets and (b) the promotion of poverty reduction.

The National Wealth Fund will operate at arm’s length from the government. The government will provide the National Wealth Fund with a new framework of investment principles and a statement of strategic priorities in the coming months.

Pursuant to the Answer of 4 October 2024 to Question 6322 on Databases: Blyth, whether HMRC has undertaken an assessment of the projected loss of tax receipts from Blackstone's data centre in Blyth Investment Zone as the result of tax relief.

Estimates of the cost of tax relief for investment in Investment Zones were published in the Spring Budget 2024 – policy document and were estimated at an aggregate level. Estimates for individual projects within special tax sites are not available. HMRC is unable to comment on identifiable individuals or businesses. Guidance on eligibility for tax reliefs in Investment Zone sites is available on gov.uk.

Pursuant to the Answer of 10 October 2024 to Question 7485 on Carbon Capture, Usage and Storage: Taxation, if she will hold discussion with carbon capture, usage and storage organisations in receipt of Government funding on (a) the location of their headquarters and (b) their tax status.

All the current applicants for government support in Track 1 of the Carbon Capture, Usage and Storage programme are registered in England and Wales. Companies pay Corporation Tax in the UK on their profits derived from economic activities they undertake through a place of business here.

Whether her Department plans to increase real terms funding for the Probation Service in the context of the prisoner early release scheme.

As the Chancellor has made clear, all future spending decisions will be negotiated through the Spending Review process and announced on October 30th through the Budget.

What recent assessment her Department has made of the potential impact of charging VAT on private school fees on levels of demand for state school places.

On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools. Any fees paid from 29 July 2024 relating to the term starting in January 2025 onwards will be subject to VAT. A start date of January 2025 will have given schools and parents 5 months to prepare for the changes, and it is right that we introduce these changes as soon as possible in order to raise the funding needed to help deliver our education priorities. The Government has carefully considered the impact that these changes will have on pupils and their families across both the state and private sector, as well as the impact they will have on state and private schools. Following scrutiny of the Government’s costing by the independent Office for Budget Responsibility, the Government will confirm its approach to these reforms at the Budget on 30 October, and set out its assessment of the expected impacts of these policy changes in the normal way. The Government recognises that some pupils may subsequently move into the state education sector. However, the number of pupils who may switch schools as a result of these changes represents a very small proportion of overall pupil numbers in the state sector. The Government is confident that the state sector will be able to accommodate any additional pupils and that these policies will not have a significant impact on the state education system as a whole.