Written questions by Chowns.

With reference to the correspondence entitled Monetary Policy Remit, published on 15 November 2024, what assessment she has made of the effectiveness of the Monetary Policy Committee’s progress in (a) delivering long-term growth and (b) accelerating the transition to a (i) climate resilient, (ii) nature positive and (ii) net zero economy.

Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England, so the government does not comment on the conduct or effectiveness of monetary policy. The MPC’s primary objective is to achieve price stability. Subject to that, its secondary objective is to support the economic policy of the government, which is “to restore broad-based and resilient growth built on strong and secure foundations”. As the Chancellor said in a letter to the Governor on 18 September 2025, low and stable inflation is essential for long-term economic growth and sustained increases in living standards. Delivering on the climate and nature is one part of the government’s broader economic strategy and it is up to the MPC to judge how it sets monetary policy in line with its remit. Consistent with its remit, the MPC sets monetary policy in a way that helps to sustain growth and employment. The MPC has the government’s full support as it acts to return inflation to the 2% target sustainably.

What recent discussions she has had with the Secretary of State for Environment, Food and Rural Affairs on conditions attached to the spending of the farming budget to ensure (a) value for money, (b) increased food security and (c) environmental targets are met.

The Chancellor and I have regular discussions with the Secretary of State for Environment, Food and Rural Affairs on a range of matters. Defra’s settlement will invest more than £2.7 billion a year in sustainable farming and nature recovery from 2026-27 until 2028-29. This will protect the natural ecosystems underpinning food production, boosting food security and delivery of our environmental targets. We are increasing value for money, and accelerating progress towards our environmental targets, by rapidly winding down subsidy payments that do not provide a return on investment to increase funding for Environmental Land Management schemes from £800 million in 2023-24 to £2 billion by 2028-29.

If she will make it her policy to reclassify housing as essential infrastructure.

On 19 June, the government published UK Infrastructure: A 10 Year Strategy. This sets out a long-term vision to deliver the infrastructure needed to drive the government’s missions, backed by at least £725 billion in infrastructure investment over the next decade. Social, economic and housing infrastructure underpin the government’s central missions and the Plan for Change. That is why this government’s strategy brings together housing, social and economic infrastructure, aligning planning and delivery over the next 10 years to support growth. The government has made its commitment to housing clear, including through major reforms to the planning system, its 10 year £39 billion investment in the Affordable Homes Programme, and the establishment of a new National Housing Bank backed with £16 billion of financial capacity, on top of £6bn of existing finance to be allocated this Parliament.

How many enquiries have hon. Members made to HMRC on errors that led to constituents being overcharged tax in each of the last five years; and what proportion of those enquiries resulted in HMRC repaying overcharged tax in each of the last five years.

HMRC receives enquiries from hon. Members through a variety of channels, including calls, emails and letters, covering a wide range of topics. HMRC does not systematically record which of these enquires specifically relate to instances of overcharged tax, nor whether they resulted in a repayment.Obtaining this information would require a detailed analysis of every enquiry raised by hon. Members. The level of resource needed to conduct such an in-depth review would exceed the disproportionate cost threshold for written parliamentary questions.

If she will make an estimate of the potential revenue that could be raised through (a) equalising capital gains tax with income tax rates and (b) applying a 2 per cent tax for people with assets over £10 million, to be paid on the excess amount over £10 million.

The Government continually keeps the tax system under review. Published estimates for illustrative tax changes can be found in HMRC’s Direct effects of illustrative tax changes bulletin including changes to Capital Gains Tax [1] [1] https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes/direct-effects-of-illustrative-tax-changes-bulletin-january-2025

What assessment she has made of the technical differences between co-operatives and credit unions which justify excluding credit unions from the exemption from audit requirements available to smaller co-operatives under the Co-operative and Community Benefit Societies Act 2014; and whether the Government plans to review this distinction in light of forthcoming recommendations from the Law Commission’s review of the Act.

The Government recognises the important contribution of co-operatives and mutuals to the economy, serving local communities around the country and ensuring the UK has a diverse business sector with their model of shared ownership. The Government is committed to unlocking the full potential of the mutual and co-operative sector to support inclusive growth. Co-operatives are diverse organisations that span a variety of different sectors. Credit unions are financial co-operatives which offer savings and loans to their members. As deposit-takers, credit unions are subject to specific regulatory requirements. The Government is funding the Law Commission’s independent review of the Co-operative and Community Benefit Societies Act 2014 to help ensure that co-operatives legislation is meeting the needs of this sector. This review will consider ways to update and modernise the Act. The Government will carefully consider the findings of this review to understand whether reform of the legislation is needed to ensure these businesses are supported to grow and succeed into the future.

What progress she is making on implementing the findings of The Economics of Biodiversity: The Dasgupta Review, published by her Department in February 2021.

The Government agrees with the central conclusion of the Dasgupta Review that nature, and the biodiversity that underpins it, sustains our economies, livelihoods and wellbeing. It is therefore committed to integrating nature into economic and financial decision-making, and the institutions and systems that underpin it. The Treasury continues to make progress and explore ways to strengthen processes for assessing the climate and environmental impacts of fiscal decisions and improve the Green Book in line with emerging evidence and best practice. For example, building on the extensive guidance already provided for evaluating and monetising natural capital impacts, the Government has published updated supplementary guidance to the Green Book on Enabling a Natural Capital Approach, including additional guidance on valuing biodiversity. As set out in the Budget last October, the Government is continuing to invest in the natural environment, confirming £5 billion over two years to support the transition to a more productive and environmentally sustainable agricultural sector in England, and at least £400 million for tree planting and peatland restoration to protect soils, rivers and biodiversity.

Pursuant to the Answer of 7 March 2025 to Question 34130 on Fossil Fuels, what assessment she has made of the adequacy of the World Trade Organisation definition of fossil fuel subsidies; and if she will make it her policy to use this definition.

The UK follows the International Energy Agency’s (IEA) definition of a fossil fuel subsidy. The IEA defines a fossil fuel subsidy as government action that lowers the effective cost for fossil fuels paid by consumers to below world market prices.There are other internationally used definitions for fossil fuel subsidies, including the World Trade Organization definition, which include measures that do not reduce consumer prices below world market levels. However, such definitions classify measures as support without reference to the purpose for which they were first put in place or their economic or environmental effects.

What assessment she has made of the potential impact of changes to the level and threshold of (a) employer National Insurance contributions and (b) business rates relief on the hospitality sector in Herefordshire.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs. The TIIN sets out the impact of the policy on the exchequer; the economic impacts of the policy; and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which sets out a detailed forecast of the economy and public finances. On business rates, without any government intervention, Retail, Hospitality and Leisure (RHL) relief would have ended entirely in April 2025, creating a cliff-edge for businesses. Instead, the Government has decided to offer a 40 per cent discount to RHL properties up to a cash cap of £110,0000 per business in 2025-26 and frozen the small business multiplier. From 2026-27 we intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties with rateable values below £500,000. This tax cut must be sustainably funded, and so we intend to introduce a higher rate on the most valuable properties on 2026-27 - those with rateable values of £500,000 and above. These represent less than one per cent of all properties, but cover the majority of large distribution warehouses, including those used by online giants. The Government will confirm the rates for the new multipliers at Budget 2025. Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions. Nevertheless, when the new multipliers are set at Budget 2025, HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.

If she will make an estimate of the cost to the public purse of Government (a) subsidies and (b) support to fossil fuel companies in the last 12 months.

The UK does not give any subsidies to fossil fuel companies and follows the International Energy Agency’s definition of a fossil fuel subsidy.Where data is available, estimates of the cost of tax reliefs available to oil and gas companies are published on GOV.UK here: https://www.gov.uk/government/collections/tax-relief-statistics.

If she will make it her policy to (a) end funding for the Ring Fence Expenditure Supplement for oil and gas companies and (b) redirect any savings to international climate finance.

Ring Fence Expenditure Supplement (RFES) maintains the time value of oil and gas exploration, appraisal and development costs. This recognises that oil and gas projects have high costs before production begins, but no production income to set these costs against. By maintaining the time value of these costs when they are used against production income in future years, RFES supports investment in the sector by ensuring companies receive an appropriate deduction for their expenditure. The government currently has no plans to change this aspect of the tax system, but keeps all of its taxes under review as a matter of course. This Government is engaged in international discussions regarding ways to mobilise finance at the scale needed to respond to the climate crisis. This includes mobilising funding from non-traditional donors, the private sector, philanthropies and through innovative financing.