Written questions by Cartlidge.

With reference to page 45, clause 15, of the National Security Document 2025: Security for the British people in a dangerous world, whether the announced 2.6 per cent of defence spending from 2027 will be classified as core defence spending.

The National Security Strategy 2025 was published on 24 June 2025. It confirms that by combining an increase in funding with recognition of the vital contribution the Single Intelligence Account plays to our national defence, the UK will spend 2.6% on NATO qualifying defence spending from 2027. This will be classified as core spending.

With reference to the Government press release entitled UK to deliver on 5% NATO pledge as Government drives greater security for working people, published on 23 June 2025, how much of the announced commitment to spend 1.5 percent of GDP on resilience and security represents new money.

NATO provides reporting guidelines for the 1.5% defence and security related spending. It will include investments that raise the overall resilience of our societies, such as energy security, telecommunications, and infrastructure, as well as the execution of defence plans, expanding industrial capacity and innovation and counter hybrid actions. Our National Security Strategy confirms our belief that these types of investment are vital to national security and we are pleased that this is now recognised by NATO. As set out in the Spending Review 2025, this government is making significant investment into these areas and we are confident we will meet the 1.5% target on defence and security related spending. Along with all other NATO allies, the UK will report against the new categories of defence spending at the next NATO reporting deadline.

With reference to page 45, clause 15, of the National Security Document 2025: Security for the British people in a dangerous world, whether the announced 2.6 percent of defence spending from 2027 will include any expenditure on resilience and security.

The National Security Strategy 2025 was published on 24 June 2025. It confirms that by combining an increase in funding with recognition of the vital contribution the Single Intelligence Account plays to our national defence, the UK will spend 2.6% on NATO qualifying defence spending from 2027. This 2.6% will be considered core defence spending.

Pursuant to the Answer of 11 June 2025 to Question 59131 on Intelligence Services: Finance, if she will specify the total financial quantum of the greater elements of the Single Intelligence Account spend referred to.

In line with practice among our allies, and recognising the increased contribution provided by our security and intelligence agencies on defence, we are including greater elements of the Single Intelligence Account spend in our NATO defence reporting. This will bring total NATO qualifying spending to 2.6% by 2027-28. NATO sets the definition for NATO qualifying defence spending, against which the Government reports, in line with guidance provided by NATO. The SIA budget is set out in the Spending Review 2025 document. (Spending Review 2025 document - GOV.UK) The inclusion of departmental spending that falls under NATO qualifying defence spending definitions will continue to be periodically reviewed in line with NATO guidance.

With reference to clause 5.59 of the Spending Review 2025, published on 11 June 2025, if she will state for each year of the spending review the financial quantum of the Foreign, Commonwealth and Development Office's non-ODA budget accounted for by the portion of this funding which will contribute to the UK’s NATO-attributed defence spending, including FCDO-led programming in partnership with the Ministry of Defence and the Intelligence Community to counter (a) cyber attacks, (b) election interference, (c) disinformation and (d) other threats to stability.

Elements of FCDO’s programming budget will be evaluated for NATO eligibility in line with the NATO qualifying criteria.

What proportion of the budget for the Ministry of Defence will be accounted for by expenditure on the intelligence and security services not previously included in that budget in each year of the Spending Review 2025.

The PM announced in February that an increase in NATO qualifying defence spending to 2.5% would be fully funded by a reduction to the ODA budget. In line with practice among our allies, and recognising the increased contribution provided by our security and intelligence agencies on defence, we are including greater elements of the Single Intelligence Account spend in our NATO defence reporting. This will bring total NATO qualifying spending to 2.6% by 2027-28. This does not mean that the intelligence and security services will be added to the MOD budget.NATO qualifying defence spending has always included elements beyond the MOD TDEL budget. This includes elements of spend such as armed forces pensions.

With reference to to table 5.1 on pages 44-45 of the Spending Review 2025, published on 11 June 2025, CP 1336, whether the Single Intelligence Account budget will be added to the Ministry of Defence's budget in 2027-28.

The PM announced in February that an increase in NATO qualifying defence spending to 2.5% would be fully funded by a reduction to the ODA budget. In line with practice among our allies, and recognising the increased contribution provided by our security and intelligence agencies on defence, we are including greater elements of the Single Intelligence Account spend in our NATO defence reporting. This will bring total NATO qualifying spending to 2.6% by 2027-28. This does not mean that the intelligence and security services will be added to the MOD budget.NATO qualifying defence spending has always included elements beyond the MOD TDEL budget. This includes elements of spend such as armed forces pensions.

What the total quantum is of the amount of money that will be added to the defence budget as a result of the incorporation of the intelligence and security services in each year of the Spending Review 2025.

The PM announced in February that an increase in NATO qualifying defence spending to 2.5% would be fully funded by a reduction to the ODA budget. In line with practice among our allies, and recognising the increased contribution provided by our security and intelligence agencies on defence, we are including greater elements of the Single Intelligence Account spend in our NATO defence reporting. This will bring total NATO qualifying spending to 2.6% by 2027-28. This does not mean that the intelligence and security services will be added to the MOD budget.NATO qualifying defence spending has always included elements beyond the MOD TDEL budget. This includes elements of spend such as armed forces pensions.

Whether her Department plans to launch a call for evidence as part of the Loan Charge review.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. The terms of reference make clear that it will be for the reviewer to decide what arrangements are needed to engage with stakeholders during the review. The Government is committed to tackling promoters of tax avoidance and is currently consulting on a package of measures, powers and sanctions to facilitate swifter and stronger action against those who own or control promoter organisations. Further options are under consultation targeting those tax advisors and legal professionals behind avoidance schemes.

Whether she plans to expand the scope of the Loan Charge review to include (a) contractors and (b) other parties responsible for promoting the scheme.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The Government does not think it is right for people affected by the Loan Charge to have to wait years for any progress on bringing this matter to a close for them and has therefore ensured that the review has a focused remit, allowing it to report by this summer. The Government will respond by Autumn Budget 2025. The terms of reference make clear that it will be for the reviewer to decide what arrangements are needed to engage with stakeholders during the review. The Government is committed to tackling promoters of tax avoidance and is currently consulting on a package of measures, powers and sanctions to facilitate swifter and stronger action against those who own or control promoter organisations. Further options are under consultation targeting those tax advisors and legal professionals behind avoidance schemes.

If she will hold discussions with farmers in South Suffolk constituency on the changes to Inheritance Tax proposed in the Autumn Budget 2024.

The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, and fixing the public finances. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free. As the Minister responsible for the UK tax system, I have received representations on this subject from a number of Hon Members and I have participated in several debates in this House since Autumn Budget 2024. I have also met with Hon Members and several agricultural organisations to listen to their views. The Government has been listening to the different views on this subject and continues to believe the approach we have set out is appropriate.

What the cost to the public purse has been of the National Insurance holiday for the employers of veterans in each financial year since the introduction of that policy.

HMRC publishes estimates for the National Insurance contributions relief for veterans annually which are available here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs

What assessment she has made of the potential financial implications of the proposed Security Pact with the European Union.

We are ready to negotiate a Security and Defence Partnership agreement with the EU. This should build on the EU’s existing partnership agreements with other third countries, while recognising the unique nature of our security relationship. We are also ready to look at wider cooperation, beyond a Security and Defence Partnership agreement, on the key issues facing our continent’s security: how to ramp up our defence industrial capacity, financing and capability development. However, we will not be providing a running commentary on the details of these discussions.

Whether she plans to extend the National Insurance contributions holiday for businesses that employ veterans after April 2026.

The government keeps all taxes under review.

Whether the Chief of the Defence Staff will sit on the defence growth board.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.

Whether the National Armaments Director will sit on the defence growth board.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.

Whether the Permanent Secretary will sit on the defence growth board.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.

Whether the Second Permanent Secretary will sit on the defence growth board.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.

Whether the Deputy Chief of the Defence Staff will sit on the defence growth board.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.

How regularly the defence growth board will meet.

The membership of the Defence Growth Board consists of the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Business and Trade. They will be supported by Departmental officials, including the National Armaments Director and MOD Permanent Secretary. Meetings of the Defence Growth Board will be scheduled as required.