Every parliamentary written question tabled by James Cartlidge this session, with the full answer and department. Back to the MP page.
Showing 61–80 of 92 · Treasury
Whether the Office for Value for Money was consulted on the recently advertised remuneration package for the National Armaments Director.
The OVfM has an immediate focus on supporting value for money decisions surrounding the spending review, including developing efficiency targets and plans, scrutinising investment proposals and conducting VfM studies. It will also recommend system reforms. It is not a requirement to consult the OVfM on salary cases.
Whether the Office for Value for Money was consulted on the recently advertised remuneration package of the National Security Adviser.
The OVfM has an immediate focus on supporting value for money decisions surrounding the spending review, including developing efficiency targets and plans, scrutinising investment proposals and conducting VfM studies. It will also recommend system reforms. It is not a requirement to consult the OVfM on salary cases.
Whether she has had discussions with pension firms on investment in the defence sector.
Ministers meet a wide range of pension firms regularly. Trustees and fund managers are responsible for making investment decisions in line with their fiduciary duty and member preferences. The Government has been actively engaging with the defence industry, trade associations and the financial services sector regarding access to financial services for defence companies. In a time of increasing geopolitical instability, maintaining a robust and thriving defence sector is essential to our national security.
With reference to the Prime Minister’s Oral Statement of 25 February 2025 on Defence and Security, whether all of the announced uplift to defence spending will be allocated to the Ministry of Defence.
On 25 February 2025 the Prime Minister announced that NATO qualifying defence spending will increase to 2.5% GDP by 2027-28. Final budgets for departments for the Spending Review period will be announced on 11 June 2025.
With reference to the Prime Minister’s Oral Statement of 25 February 2025 on Defence and Security, whether she plans to hold any of the announced uplift to defence spending as a reserve.
On 25 February 2025 the Prime Minister announced that NATO qualifying defence spending will increase to 2.5% GDP by 2027-28. Final budgets for departments for the Spending Review period will be announced on 11 June 2025.
What estimate she has made of the amount of interest accrued from frozen Russian assets that has been used to provide military aid to Ukraine.
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, published in its 2022-2023 Annual Review that between February 2022 and October 2023, £22.7 billion in frozen funds had been reported to OFSI in relation to the Russia sanctions regime. This is an aggregate figure as to not disclose the value of any funds held by particular designated persons or entities and is a cumulative total of assets report.Interest accrued on frozen assets is still subject to an asset freeze to be frozen immediately by the person in possession or control of them, but there is no change in ownership of the frozen funds or economic resources, and they are not transferred to HM Treasury. As there is no obligation for a relevant institution to inform OFSI when it has credited interest to a frozen account, OFSI does not hold this information.
If she will make an estimate of the annual amount of interest accrued on all assets frozen by the Government in relation to the war in Ukraine.
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, published in its 2022-2023 Annual Review that between February 2022 and October 2023, £22.7 billion in frozen funds had been reported to OFSI in relation to the Russia sanctions regime. This is an aggregate figure as to not disclose the value of any funds held by particular designated persons or entities and is a cumulative total of assets report.Interest accrued on frozen assets is still subject to an asset freeze to be frozen immediately by the person in possession or control of them, but there is no change in ownership of the frozen funds or economic resources, and they are not transferred to HM Treasury. As there is no obligation for a relevant institution to inform OFSI when it has credited interest to a frozen account, OFSI does not hold this information.
What the value is of assets frozen as part of the Government’s support for Ukraine.
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, published in its 2022-2023 Annual Review that between February 2022 and October 2023, £22.7 billion in frozen funds had been reported to OFSI in relation to the Russia sanctions regime. This is an aggregate figure as to not disclose the value of any funds held by particular designated persons or entities and is a cumulative total of assets report.Interest accrued on frozen assets is still subject to an asset freeze to be frozen immediately by the person in possession or control of them, but there is no change in ownership of the frozen funds or economic resources, and they are not transferred to HM Treasury. As there is no obligation for a relevant institution to inform OFSI when it has credited interest to a frozen account, OFSI does not hold this information.
If she will make an estimate of the value of unallocated interest from assets frozen as part of the Government’s support for Ukraine.
The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, published in its 2022-2023 Annual Review that between February 2022 and October 2023, £22.7 billion in frozen funds had been reported to OFSI in relation to the Russia sanctions regime. This is an aggregate figure as to not disclose the value of any funds held by particular designated persons or entities and is a cumulative total of assets report.Interest accrued on frozen assets is still subject to an asset freeze to be frozen immediately by the person in possession or control of them, but there is no change in ownership of the frozen funds or economic resources, and they are not transferred to HM Treasury. As there is no obligation for a relevant institution to inform OFSI when it has credited interest to a frozen account, OFSI does not hold this information.
Whether the application of inheritance tax to death in service payments will apply to (a) fire, (b) police service and (c) any other emergency service payments.
Estates of emergency services personnel will benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. There is also an existing full exemption from inheritance tax when a member of the emergency services dies from an injury sustained, accident occurring, or disease contracted when that person was responding to emergency circumstances. More information is available at www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11291. The Government will bring most unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax purposes from 6 April 2027. Inheritance tax is already applied to death in service benefits for some pension schemes. The expected revenue from reforms to the inheritance tax treatment of unused pension funds and death benefits was set out at Autumn Budget 2024. A specific breakdown of the expected revenue from different forms of death benefits is not readily available.
What the revenues to the Exchequer will be from the application of Inheritance Tax to death in service payments in the (a) 2024-25 financial year and (b) each remaining financial year in this Parliament.
Estates of emergency services personnel will benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. There is also an existing full exemption from inheritance tax when a member of the emergency services dies from an injury sustained, accident occurring, or disease contracted when that person was responding to emergency circumstances. More information is available at www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm11291. The Government will bring most unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax purposes from 6 April 2027. Inheritance tax is already applied to death in service benefits for some pension schemes. The expected revenue from reforms to the inheritance tax treatment of unused pension funds and death benefits was set out at Autumn Budget 2024. A specific breakdown of the expected revenue from different forms of death benefits is not readily available.
What economic assumptions her Department has used to calculate the proposed increase in defence spending of £13.4bn by 2027.
Economic assumptions are based on independent forecasts provided by the OBR, under the Charter of Budget Responsibility. The next forecast will become available at the Spring Statement on 26 March in the usual way.
With reference to the Prime Minister's Oral Statement of 25 February 2025 on Defence and Security, Official Report, whether the funding announced for the intelligence and security services will meet the NATO definition of defence expenditure.
The definition of defence spending will be broadened to include our security and intelligence services, which could have the effect of increasing the GDP percentage of NATO qualifying defence spending in 2027-28 by around an additional 0.1%.
What are the (a) economic and fiscal conditions and (b) operational needs required to reach three per cent of GDP on defence expenditure in the next Parliament.
The Chancellor will continue to set fiscally responsible, credible spending plans to meet this goal, supported by the number one mission of this government – to drive economic growth. Putting a stake in the ground now drives preparation and sends a clear message about prioritising security in an increasingly turbulent world.
Pursuant to the Answer of 8 November to Question 11947 on Armed Forces: Private Education, whether the decision to not offer any exemptions from the VAT policy for service families included an assessment of the exemption of US personnel whose children attend British independent schools.
The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates. The changes mean that UK military families with a child at a mainstream boarding school can now claim over £30,000 per year. US personnel do not receive funding from the UK Government for their school places. They can only claim back the VAT element of fees, under a scheme that entitles UK military personnel to reciprocal reliefs when visiting other NATO countries. The NATO Status of Forces Agreement (SOFA) means that visiting NATO personnel have access to Visiting Forces Relief (VFR), for example the VAT free purchase scheme which provides relief on goods and services to US personnel in the UK.
If she will make an estimate of the total net fiscal impact of no longer paying fees associated with EU membership on overall UK public expenditure in each remaining financial year this Parliament.
The Government has no overall estimate of the impact of the UK’s exit from the EU on public finances and it is not possible to accurately estimate the UK’s hypothetical contributions to the EU had it remained a Member State. As part of the Withdrawal Agreement with the EU, the UK agreed the Financial Settlement, which is a methodology for settling pre-existing UK financial obligations to the EU. The European Union Finances Statement 2023 (available in the library of the House and on Gov.uk) sets out HM Treasury’s estimates of the size of these obligations. As at December 2023, the UK is estimated to have paid £23.8bn (€27.4bn) in net liabilities to date as part of the EU financial settlement. Estimated UK outstanding net liabilities as of December 2023 were £6.4bn (€7.4bn).In the next iteration of the EU Finances Statement, expected in Spring 2025, HM Treasury will publish details of UK payments under the Financial Settlement in 2024 and its latest estimate for outstanding UK liabilities as at 31st December 2024.
If she will make an estimate of the total net fiscal impact of no longer paying fees associated with EU membership on overall UK public expenditure.
The Government has no overall estimate of the impact of the UK’s exit from the EU on public finances and it is not possible to accurately estimate the UK’s hypothetical contributions to the EU had it remained a Member State. As part of the Withdrawal Agreement with the EU, the UK agreed the Financial Settlement, which is a methodology for settling pre-existing UK financial obligations to the EU. The European Union Finances Statement 2023 (available in the library of the House and on Gov.uk) sets out HM Treasury’s estimates of the size of these obligations. As at December 2023, the UK is estimated to have paid £23.8bn (€27.4bn) in net liabilities to date as part of the EU financial settlement. Estimated UK outstanding net liabilities as of December 2023 were £6.4bn (€7.4bn).In the next iteration of the EU Finances Statement, expected in Spring 2025, HM Treasury will publish details of UK payments under the Financial Settlement in 2024 and its latest estimate for outstanding UK liabilities as at 31st December 2024.
If she will make an estimate of the total revenue to be raised from applying VAT to independent schools in South Suffolk constituency in the next financial year.
The Government does not have an estimate of the revenue from this measure specifically from the South Suffolk constituency. At the Autumn Budget the Government published a detailed response to the consultation conducted between July and September. Annexed to this is the costing methodology used to calculate the total revenue generated by this policy. Included is a breakdown of the exchequer impact by year, including 2025/26. This was published online and can be found here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf
If she will estimate the revenue expected to be raised from applying business rates to independent schools in South Suffolk constituency in the next financial year.
At Autumn Budget 2024, the Government reconfirmed that it is removing private schools’ eligibility for charitable rate relief under business rates in England from April 2025. This intervention will raise around £140 million per year.Business rates retention means that local authorities retain a proportion of all business rates revenue. As such, the increase in rates receipts due to the reduction in charitable rate relief for private schools will be shared between central and local government.
Whether the Office for Value for Money will assess the proposed Chagos settlement.
The Chagos agreement, as an international treaty, falls outside the remit of the OVfM, which is focused on removing inefficiency, scrutinising investment proposals and provide advice on system reforms.